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Delphi's Electric Steering Customer Base Grows With More Than $1 Billion In New Sales During First Half of 2000

9 August 2000

Delphi Continues to Meet Changing Market Demands by Expanding Their High Tech Electric Steering Portfolio and Securing New Business

    TROY, Mich. - Delphi Automotive Systems announced today more than $1 billion 
in electric power steering contracts secured during the first half of 2000.

    Delphi's successful launch of its E*STEER(TM) Electric Power Steering
System last fall on the Fiat Punto has brought them new customers in both
Europe and the United States.  Four new contracts with three customers will
bring Delphi more than $1 billion in sales revenue over a five-year period,
which is in addition to two current production contracts.  As further evidence
of Delphi's leadership position in the electric steering market, four electric
power steering customer development contracts have also been secured this
year.

    In addition to the E*STEER contracts, Delphi is moving forward with its
advanced front and rear electric steering systems.  Delphi currently has three
steer-by-wire development contracts with European and American vehicle
manufacturers.

    "These electric steering contracts are strategically important to Delphi
from a growth standpoint and serve to validate our leadership in this exciting
technology transition," explained Paul J. Tosch, Delphi Saginaw Steering
Systems president and Delphi Automotive Systems vice president.  "We expect
more than $ 1 billion in annual sales for our electric steering systems,
including rear steering systems, by the year 2005."

    E*STEER Improves Fuel Economy

    The E*STEER system's fully-electric, engine-independent design eliminates
the traditional hydraulic power steering system's pump, hoses, hydraulic fluid
and drive belt and pulley on the engine which helps improve fuel economy.  In
fact, E*STEER improves overall fuel economy by an average of five percent
compared to a traditional hydraulic steering system.  The system's mileage
impact by vehicle type ranges from 1.3 miles per gallon increase for
subcompact vehicles to .45 miles per gallon increase for mid- to large-size
passenger vehicles.  This fuel economy benefit, along with E*STEER's variable
effort steering, assisted return-to-center and power steering with the engine
off for added safety, provides significant added value to the end-consumer
compared to traditional hydraulic steering systems.

    Full-Size Vehicle Applications

    Delphi is moving quickly into the development of electric power steering
systems for full-size vehicles, including sport utilities and light trucks,
with its E*STEER Rack Assist design.  This scaleable system is suitable for a
full range of vehicles from compact to full-size.  In addition, the E*STEER
Rack Assist system will allow vehicle manufacturers to leverage existing
mechanical hardware for future 42-volt applications resulting in cost savings
and better manufacturing capability.

    The controller, sensor and actuator technology used in Delphi's E*STEER
system is the basis for the development for other advanced electric steering
systems, including front and rear steer-by-wire systems.

    Delphi's QUADRASTEER(TM) Four Wheel Steering System is an electric rear
steering system that will debut on a General Motors' 2002 full-size pickup
truck yet to be announced.  This unique application of four wheel steering
allows a full-size vehicle to maneuver like a passenger car.  In addition,
steering with all four wheels enhances stability at highway speeds and
significantly improves trailering capabilities.

    Both E*STEER and QUADRASTEER offer the manufacturer quick tuning
capabilities with a laptop computer, which significantly reduces development
time and provides the opportunity to achieve better performance than a
traditional hydraulic system.  By electronically altering sophisticated
algorithms, or mathematical formulas, both systems can be tuned quickly and
precisely to meet varying vehicle handling specifications for each vehicle
manufacturer.

    "It has been very exciting to watch how our engineers have been able to
utilize state-of-the-art electronics to significantly enhance the performance
and value of the steering system," said Tosch.  "And this is only the
beginning.  The expertise we have gained from engineering and manufacturing
E*STEER and developing steer-by-wire technology is serving as a solid
foundation in our development of future smart integrated chassis systems."

     Multi-national Delphi Automotive Systems, with headquarters in Troy,
Mich., USA, Paris, Tokyo and Sao Paulo, Brazil, is a world leader in mobile
electronics and transportation 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 216,000
employees and operates 179 wholly owned manufacturing sites, 41 joint
ventures, 53 customer centers and sales offices and 31 technical centers in 39
countries.