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Delphi Automotive Systems to Develop and Manufacture Electronics Systems And Controls for Caterpillar

12 October 1999

Delphi Automotive Systems to Develop and Manufacture Electronics Systems And Controls for Caterpillar

                  Caterpillar Deal Raises Delphi's Presence
                   In Diesel-Powered Heavy Equipment Market

    TROY, Mich., Oct. 12 -- Delphi Automotive Systems
has agreed to supply engine electronics and hydraulic control modules for
Caterpillar Inc. , the world's leading manufacturer of construction
and mining equipment, diesel and natural gas engines, and industrial gas
turbines.
    Delphi Delco Electronics Systems, a division of Delphi Automotive Systems,
will co-develop engine controllers for all of Caterpillar's diesel engines and
many Caterpillar machines, with the start of production in mid-2001.  Delphi
Delco Electronics Systems, in conjunction with Delphi Energy & Engine
Management Systems, is developing a new line of hydraulic control modules,
which consist of sensor and actuator components, integrated with control
electronics into a highly compact and cost-effective package.  Close coupling
of technology in this manner provides Caterpillar a new generation of control
architecture.  In addition, Delphi will work with Caterpillar to develop new
generations of electronic control modules (ECMs).  The agreement, which
includes Caterpillar heavy-duty, medium-duty and light-duty diesel engines,
runs through the year 2004.  The value of the deal was not disclosed.
    As the world's largest and most complete supplier of powertrain, chassis,
interior, safety and security vehicle electronics systems, Delphi is a major
supplier of powertrain electronics, sensors and actuators for light-duty,
gasoline engines to manage engine and transmission performance.  With the
Caterpillar agreement, Delphi will also become a major provider in the heavy-
duty, diesel-powered engine market.
    "We are extremely pleased and are looking forward to a long-term
relationship as Caterpillar's main source of electronics," said Dave Wohleen,
president of Delphi Delco Electronics Systems.  "Our alliance with Caterpillar
aligns Delphi with an outstanding international company that helps expand our
global presence and supports our growth strategy."
    Delphi Automotive Systems , with headquarters in Troy, Mich.,
USA, is a world leader in automotive component and systems technology.
Delphi's three business sectors -- Dynamics & Propulsion; Safety, Thermal &
Electrical Architecture; and Electronics & Mobile Communications -- provide
comprehensive product solutions to complex customer needs.  Delphi has more
than 201,000 employees and operates 168 wholly owned manufacturing sites, 38
joint ventures, 51 customer centers and sales offices, and 28 technical
centers in 37 countries.  Regional headquarters are located in Paris, Tokyo
and Sao Paulo.  Delphi can be found on the Internet at
http://www.delphiauto.com