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Delphi Expands Growth in Non-Automotive Markets

3 March 2000

Delphi Expands Growth in Non-Automotive Markets

           Sales Expected to Grow to $700 Million by 2004 as Delphi
        Continues to Find New Applications for Automotive Technologies

    TROY, Mich., March 3 -- Delphi Automotive Systems
expects to grow its non-automotive business by almost 70 percent to more than
$700 million over the next three to five years, company officials said today.
    Delphi's growth in these markets, which include communications, military
and aerospace, agriculture, and construction, will be fueled by its broadening
customer base and its electronics expertise, said J.T. Battenberg III, Delphi
chairman, chief executive officer and president.
    "There is enormous potential for Delphi in the non-automotive market, and
we are quickly working ourselves into a position where we'll be able to
realize this potential," Battenberg said.  "We're doing more business with
more customers, we're entering into new markets where it makes sense to do so,
and we're building our electronics expertise to the point where we can add
real value beyond just the automotive world."
    Delphi earned $422 million in non-automotive revenue last year, led in
large part by its Packard-Hughes Interconnect (PHI) subsidiary.
    This portfolio includes Delphi-developed connectors, controllers, sensors,
wiring assemblies and a host of other components combined with PHI's
communication and military/aerospace interconnection offerings.
    The growing demand for Delphi components and systems for non-automotive
applications is unique, because automotive technologies are not commonly
considered to be applicable to other industries.
    In recent months, however, Delphi has earned a number of significant
contracts from Deere and Co., Caterpillar Inc., Harley-Davidson Motor Co., and
Komatsu, further exemplifying the company's growing presence in non-automotive
markets.

    One Advantage:  Leveraging Existing Automotive Technology
    "One important advantage of Delphi's non-automotive business is our
ability to leverage existing automotive technologies," Battenberg said.
    "We're discovering that a lot of the technologies we've already developed
for cars and trucks are applicable to the telecommunications, construction,
agriculture, military and recreation markets.  As a result, we're able to
leverage our development costs and expertise, and that allows us to react
quickly to our non-automotive customer needs."
    According to Battenberg, Delphi often provides non-automotive customers
with proven technologies like sensors, audio components or composite springs
that provide competitive advantages for customers who are competing in fast-
moving markets and need to differentiate their products in the marketplace.

    A Second Advantage -- Technology Development for Future Auto Applications
    Battenberg said that just as Delphi will use existing technology to
support non-automotive business, Delphi also will use the non-automotive
market to develop technology for cars and trucks.
    "It's not uncommon for certain technologies to find their way onto
non-automotive products first because the cycle time for these markets is much
shorter," he said.  "That works well for us, because it's a way to get new
products to market quicker and measure their performance in the real world."

    Overview - Delphi's Non-automotive Categories
    Delphi divides its non-automotive business into four categories:

    1.  Agriculture & Construction -- Includes systems and components for
        heavy-duty equipment.  Delphi applications include audio receivers,
        composite tractor and trailer springs, HVAC components, seat belts,
        instrument panels, door modules, and diesel engine electronic control
        modules.

    2.  Communications -- Includes electronic applications for products and
        systems like mobile telephones, telecommunications networks,
        manufacturing of integrated circuitry and broadcast cabling.  Delphi
        applications in this area include advanced connectors, fiber optics
        and flexible circuitry.

    3.  Military & Aerospace -- Includes components and systems for aircraft.
        Delphi applications in this area include wiring assemblies, connection
        systems, flexible circuitry, fiber optics and integral gears.

    4.  Recreation -- Components and systems for motorcycles, watercraft, and
        recreational vehicles are included in this category.  Delphi
        applications include engine and fuel handling components, instruments,
        wiring assemblies, ignition leads, halfshafts, and steering pumps and
        hoses.

    Delphi Automotive Systems, headquartered in Troy, Mich., USA, is a world
leader in transportation and mobile electronics components and systems
technology.  Delphi's three business sectors -- Dynamics & Propulsion; Safety,
Thermal & Electrical Architecture; and Electronics & Mobile Communication --
provide comprehensive product solutions to complex customer needs.  Delphi has
approximately 213,500 employees and operates 175 wholly owned manufacturing
sites, 41 joint ventures, 53 customer centers and sales offices and
27 technical centers in 38 countries.  Regional headquarters are located in
Paris, Tokyo and Sao Paulo, Brazil.  Delphi can be found on the Internet at
http://www.delphiauto.com .