Delphi Medical Systems Deepens Its Respiratory Care Market Penetration

TROY, Mich., June 21 /PRNewswire/ -- Delphi Medical Systems, a subsidiary of Delphi Corp. , has already booked contracts totaling more than $200 million in 2005 alone to develop and manufacture breakthrough respiratory care devices.

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Similar to the approach that made Delphi a leader in the extremely competitive automotive industry, the model used by Delphi Medical Systems is to provide customized products and technologies to OEMs and other distribution channels within a market that can leverage its technology portfolio.

"We are able to pull together very unique product concepts by combining Delphi's robust research and development expertise and technologies with technologies that we obtained through strategic alliances," said Christophe Sevrain, managing director of Delphi Medical Systems. "Our work with OEMs in this market segment, as well as our recent licensing agreement and acquisitions, allow us to rapidly offer custom products/technology options in oxygen therapy and sleep disorder management in record time by leveraging Delphi's product development expertise and Intellectual Property portfolio."

For example, products under development will benefit from a variety of new technologies that made possible an elegant design, which maintains competitive prices while increasing patient comfort, treatment efficacy, patient safety, ease-of-use in the home, connectivity, performance, and reliability.

These new oxygen therapy, and sleep disorder management devices will generally be co-branded, bearing both Delphi Medical Systems' and our distributors' logos in the United States and abroad.

"We continue to see that the successful mix of Delphi's competencies in R&D and manufacturing and the latest clinical findings provide the ideal foundation for creating better products for patients and more economic and easier-to-use tools for health care providers," Sevrain said.

About Delphi Medical Systems

Delphi Medical Systems is a world-class provider of technology, products, and product development and manufacturing for respiratory care, IV infusion, vital signs monitoring, dialysis equipment, in-vitro diagnostics and surgical/ hospital equipment. Its capabilities stem from Delphi's vast technology base, product development expertise and manufacturing excellence.

For more information on Delphi Medical Systems, please visit http://www.delphimedical.com/ .

FORWARD LOOKING STATEMENT

All statements contained or incorporated in this press release which address operating performance, events or developments that we expect or anticipate may occur in the future (including statements relating to future sales or earnings expectations, volume growth, awarded sales contracts or statements expressing general optimism about future operating results) are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are made on the basis of management's current views and assumptions with respect to future events. Important factors, risks and uncertainties which may cause actual results to differ from those expressed in our forward-looking statements are discussed in detail in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K for the year ended December 31, 2003. In particular, the achievement of projected levels of royalties and profit margins over a licensing agreement will depend in part on customer demand which may be affected by, among other things, uncertainty of product development and manufacturing, uncertainty about obtaining and maintaining FDA regulatory clearances and the timing of receiving marketing clearances, uncertainty relating to third party reimbursement, ability to convince health care professionals and third party payers of the medical and economic benefits of the licensed products, changes in general economic conditions, and changes in our ability to satisfy service, technology, quality and other requirements. Delphi does not intend or assume any obligation to update any of these forward-looking statements.