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Delphi and Palm Demonstrate Mobile Multimedia Products

18 April 2000

Delphi and Palm Demonstrate Mobile Multimedia Products and Services PRODUCTIVITY ON THE GO Delphi Automotive Systems' Communiport(R) Mobile Productivity Center, or MPC (featured), is a mobile docking station with advanced software. MPC will allow owners of Palm, Inc.'s handheld computing devices to use the units safely while driving. As shown here, the unit will fit into a vehicle cup holder and plug into a standard 12-volt source, like a cigarette lighter. Consumers will be able to purchase the MPC in retail outlets by the end of the year. (PRNewsFoto)[HD] NEW YORK, NY USA 04/18/2000     MORE PRODUCTIVITY WITH NO HANDS Later this year, owners of Palm, Inc.'s handheld computing devices will be able to move their "anywhere, anytime" need for information into the vehicle -- safely. Delphi Automotive Systems' Communiport(R) Mobile Productivity Center (featured), is a mobile docking station for the Palm devices that allows drivers access to Palm content while in the vehicle completely hands-free. Advanced software allows the driver and the Palm unit to talk to each other. (PRNewsFoto)[HD] NEW YORK, NY USA 04/18/2000    
           Companies Align to Deliver Hands-Free Products for Cars

    NEW YORK, April 18 Delphi Automotive Systems (NYSE: DPH)
and Palm, Inc. (Nasdaq: PALM) announced today an initiative to develop new
multimedia products and services for vehicles.  At a press conference here
today, Delphi demonstrated a prototype of the Communiport(R) Mobile
Productivity Center (MPC), that will dock and synchronize with a Palm V(TM)
handheld using Palm's HotSync(R) technology, allowing drivers access to Palm
content while in the vehicle.
    Delphi expects to initially sell the MPC through traditional retail
channels as well as next-generation models through automotive aftermarket and
OE channels.  The system is designed to be used hands-free in the vehicle
through voice recognition and a text-to-speech engine to retrieve information
from and load information into the Palm handheld.
    The companies are planning to coordinate the development of new content
delivery and services for customers using the Delphi/Palm system.  Customers
will be able to access today's Palm.Net(TM) services which include news,
weather, sports, financial information, e-mail and Web access as well as other
new vehicle value-added services.
    As currently planned, the MPC will fit into a vehicle cup holder and plug
into a standard 12-volt source such as a cigarette lighter.
    "First, the alliance leverages the strong market position held by Palm for
handheld computing devices and the broad portfolio of emerging mobile
multimedia products and technologies at Delphi," said Dave Wohleen, president
of Delphi's Electronics & Mobile Communication sector.  "Second, it joins
industry leaders in connectivity, content and automotive mobile multimedia to
support consumer demand for 'anything, anytime, anywhere' communication and
information.  And third, the alliance is focused on providing one-stop,
end-to-end solutions to consumers by providing hardware, software and content
    "Our customers rely on Palm handhelds for mobile access to important
information -- from appointments and phone numbers to critical business-
specific applications," said Barry Cottle, chief operating officer of Wireless
Internet Solutions for Palm.
    "By working with Delphi, a world-class vehicle integrator, we will provide
our customers with safer access to the content on their handheld and the
ability to update it while driving."
    The Delphi/Palm system will include two enabling software technologies.
Palm's HotSync(R) technology will transfer data between the Palm handheld and
the docking station.  Delphi's voice technologies will enable users to listen
to stored data through text-to-speech feedback and to input data into their
Palm handheld through voice commands.
    With the Delphi/Palm system, users will be able to ask their Palm handheld
    -- Download and read e-mail messages, scheduled appointments, memos and
       other stored information;
    -- Dictate and send electronic mail;
    -- Record new appointments and memos;
    -- Download and read simple Internet text, including directions, breaking
       news, stock quotes, and sports scores.
    -- Request that a phone number recorded in the Palm handheld be dialed
       through Delphi's hands-free phone, as part of Delphi's integrated
       Communiport(R) technologies.
    "As with all of our Communiport technologies, we are very focused on the
vehicle environment.  Evolving from the 1988 innovations of EyeCue(R) head-up
display and steering wheel controls, we are designing the Delphi/Palm system
so that drivers can keep their hands on the wheel and their eyes on the road,"
said Wohleen.  "We are also enhancing the ownership experience for Palm
handheld owners, who are used to being able to access their information at all
    The Mobile Productivity Center will be available before the end of 2000,
with pricing information to be announced at a later date.
    Delphi is the world's leading integrator of vehicle systems, with
$29.2 billion in sales last year.  Palm is the world's most popular brand of
handheld computing devices; more than 6 million people worldwide have
purchased a Palm handheld.
    "Our alliance plan with Palm is another example of how Delphi is working
to match our strengths as a vehicle integrator with the strengths of leading
software and hardware suppliers," said J.T. Battenberg III, Delphi chairman,
chief executive officer and president.  "We are continuing to move very
quickly to solidify our leadership position in the mobile multimedia market."

    The market for mobile multimedia technology is expected to grow by
30 percent each year over the next five years, Battenberg said.  Since forming
its Mobile MultiMedia Business Group in June 1998, Delphi has booked
$2.9 billion of new MMM business through 2006.  Delphi is expected to have
more than $200 million in MMM revenue this year.
    According to Battenberg, the alliance with Palm gives Delphi leverage to
accelerate sales of its Communiport(R) brand of mobile multimedia products.
    Today's announcement continues Delphi's commitment to aggressively grow
its mobile multimedia business.  On March 28, Delphi announced plans to
establish the mobile multimedia business as an aggressive growth business
line.  Beginning with the first quarter of 2000 Delphi started reporting
mobile multimedia business unit financial information separately.  Last week,
the company announced a strategic partnership with Ericsson Mobile
Communications AB to integrate Ericsson embedded cellular phone modules with
Delphi's telematics technologies.  More partnership announcements are expected
in the near term, Battenberg said.
    Multi-national Delphi Automotive Systems, with headquarters in Troy,
Mich., USA, Paris, Tokyo and Sao Paulo, Brazil, 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 213,000 employees and operates 176 wholly owned manufacturing
sites, 41 joint ventures, 53 customer centers and sales offices and 30
technical centers in 38 countries.  Delphi can be found on the Internet at .
    Palm, Inc. is the leading provider of handheld computing devices (IDC,
May 1999), including the Palm III(TM), Palm V(TM) and Palm VII(TM) series of
handheld computers.  The Palm OS platform is the foundation for the market-
leading handheld computers from the company as well as products from its
strategic partners such as IBM, QUALCOMM, Franklin Covey, Handspring, TRG and
Symbol Technologies.  Designed to support the increasingly mobile and
geographically dispersed nature of information management, the company's
handheld solutions allow people to carry their most critical information in
their pockets. For more information, please visit .

    Forward-Looking Statements
    This press release, other than historical financial information, contains
forward-looking statements that involve a number of risks and uncertainties.
Important factors that could cause actual results to vary materially from
those anticipated in the forward-looking statements are set forth in Delphi's
Securities and Exchange filings, including without limitation, Delphi's Annual
Report on Form 10-K for the fiscal year ended December 31, 1999.

    Palm OS and HotSync are registered trademarks and Palm, Palm.Net, Palm
III, Palm V and Palm VII are trademarks of Palm, Inc. or its subsidiaries.
Other company, product, and service names may be the trademarks or service
marks of others.