Delphi to Provide Communications Link for Caterpillar

Delphi's Telematics Enables Two-Way Data Flow for Communications Exchange to Connect Worksites to Help Reduce Operation Costs and Improve Productivity

Release Date: January 22, 2009

TROY, Mich. — Delphi Corporation (PINKSHEETS: DPHIQ) announced today that it has entered into an agreement with Caterpillar, Inc. (NYSE: CAT) to supply telematics transceivers for heavy construction machinery starting in 2010. Delphi's telematics technology will help connect worksites with a web application using machine-to-machine (M2M) communications. M2M communications will give users a convenient way to track, monitor and manage machinery at remote sites. It will also help reduce costs and increase efficiency at these operations.

The telematics transceivers enable machinery to send and retrieve data using global positioning systems (GPS) and wireless telecommunications technology. The technology will be used as part of Caterpillar's Product Link initiative. Product Link uses on-board systems to collect machine information and send data wirelessly from the machine to a web application that customers can access anywhere they have an Internet connection. The initiative is designed to provide customers with technology to better manage their fleet of machinery by creating worksites that are connected using telematics wireless communications devices.

Businesses using telematics equipped machinery can rapidly send and receive mission-critical data from the worksite. It dramatically speeds up information exchanges by providing quick responses to requests for information about machinery at the worksite. This helps to eliminate physical worksite visits to collect critical data and is a very effective and low-cost way to deliver information.

"With telematics equipped machinery, businesses can manage maintenance, performance and the logistics of machinery remotely, saving time and money," Puza said. "This is crucial when you are dealing with multimillion dollar project deadlines and expensive machinery."

Using satellite, wireless and GPS technology, Delphi's telematics transceivers utilize sensors and software to acquire essential information from a machine and wirelessly relay that information to wherever it is needed. The technology provides advantages for construction companies and other businesses that include reducing energy costs and improving productivity, maintenance and fleet logistics.

A leader in vehicle electronics, Delphi is rapidly bringing telematics technologies to market that make it possible to maintain two-way communication anywhere, anytime and anyplace in the world. Developed to withstand the rugged environmental conditions for industrial applications, the systems wirelessly transmit two-way data. Delphi has provided wireless communications technology for mobile applications for more than 70 years. Delphi also provides a complete portfolio of entertainment and communications technologies for mobile applications.

About Delphi: Delphi is a leading global supplier of mobile electronics and transportation systems, including powertrain, safety, steering, thermal, and controls & security systems, electrical/electronic architecture, and in-car entertainment technologies. Engineered to meet and exceed the rigorous standards of the vehicle industry, Delphi technology is also found in computing, communications, consumer accessories, energy and medical applications. Headquartered in Troy, Mich., Delphi has approximately 155,000 employees and operates 148 wholly owned manufacturing sites in 35 countries with sales of $22.3 billion in 2007. Delphi can be found on the Internet at www.delphi.com.

Forward-Looking Statements
This press release as well as other statements made by Delphi may contain forward-looking statements that reflect, when made, the Company's current views with respect to current events and financial performance. Such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the Company's operations and business environment which may cause the actual results of the Company to be materially different from any future results, express or implied, by such forward-looking statements. In some cases, you can identify these statements by forward-looking words such as "may," "might," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential" or "continue," the negative of these terms and other comparable terminology. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following: the ability of the Company to continue as a going concern; the ability of the Company to operate pursuant to the terms of the debtor-in-possession financing facility, its advance agreement with GM, to obtain an extension of term or other amendments as necessary to maintain access to such facility and advance agreement, including the contemplated accommodation agreement, extension of the advance agreement with GM, and partial temporary accelerated payment agreement; the Company's ability to obtain Court approval with respect to motions in the chapter 11 cases prosecuted by it from time to time; the ability of the Company to achieve all of the conditions to the effectiveness of those portions of the Amended and Restated Global Settlement Agreement and Amended and Restated Master Restructuring Agreement with GM which are contingent on Delphi's emergence from chapter 11; the ability of the Company to obtain Court approval to modify its amended plan of reorganization which was confirmed by the Court on January 25, 2008 as set forth in its filing on October 3, 2008 and to confirm such modified plan or any subsequent modifications to the confirmed plan or any other subsequently confirmed plan of reorganization and to consummate such plan; risks associated with third parties seeking and obtaining Court approval to terminate or shorten the exclusivity period for the Company to propose and confirm one or more plans of reorganization, for the appointment of a chapter 11 trustee or to convert the cases to chapter 7 cases; the ability of the Company to obtain and maintain normal terms with vendors and service providers; the Company's ability to maintain contracts that are critical to its operations; the potential adverse impact of the chapter 11 cases on the Company's liquidity or results of operations; the ability of the Company to fund and execute its business plan as described in the proposed modifications to its plan of reorganization as filed with the Court and to do so in a timely manner; the ability of the Company to attract, motivate and/or retain key executives and associates; the ability of the Company to avoid or continue to operate during a strike, or partial work stoppage or slow down by any of its unionized employees or those of its principal customers and the ability of the Company to attract and retain customers. Additional factors that could affect future results are identified in the Annual Report on Form 10-K for the year ended December 31, 2007 filed with the SEC, including the risk factors in Part I. Item 1A. Risk Factors, contained therein, and the Company's quarterly periodic reports for the subsequent periods, including the risk factors in Part II. Item 1A. Risk Factors, contained therein, filed with the SEC. Delphi disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events and/or otherwise. Similarly, these and other factors, including the terms of any reorganization plan ultimately confirmed, can affect the value of the Company's various prepetition liabilities, common stock and/or other equity securities.