Delphi Supplies the New M- And R-Class Mercedes-Benz With Rear Seat Entertainment Systems

TROY, Mich., Sept. 9 /PRNewswire/ -- Delphi Corp. will provide the current range of new M- and R-Class Mercedes-Benz with a rear seat entertainment system as an optional accessory. In the next seven years, Delphi will supply Mercedes-Benz with up to 12,000 Delphi infotainment sets per year for the North American and European markets.

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The system consisting of four high-tech entertainment components is an original Mercedes-Benz accessory provided by Mercedes-Benz Accessories GmbH which can be obtained after the market introduction of the vehicles at all Mercedes-Benz sales partners.

"We are very proud to have found such a well-known customer for our infotainment products in Mercedes-Benz. It shows us that the Delphi brand and our product strategy are definitely on the right track." says Michael Boe, Business Line Director for consumer electronics at Delphi Product & Service Solutions of the contracts with Mercedes-Benz.

The high-quality entertainment system consists of a flat 7" TFT display, a shock resistant DVD player, a remote control and two wireless headphones. The 16:9 format, 7" TFT display is perfect for moving images thanks to its high resolution and gives a clear image even at extreme viewing angles. A high- quality DVD player forms the digital core of the system. As well as video and audio DVD, the DVD player can, of course, also read music and data files in CD, CD-R, CD-RW, S-VCD and MP3-CD format, as well as photos in JPG format. Illuminated keys let the viewer keep control of the DVD player, even in the dark.

After short journey breaks or after the engine has been switched off, a special module enables the system to know exactly which content was played last -- so one does not have to go searching through the last film or music program.

For further information, visit our website at http://www.delphi.com/ or http://www.delphigrundig.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, cash flow or earnings expectations, savings expected as a result of our global restructurings or other initiatives, portfolio restructuring plans, volume growth, awarded sales contracts and customer diversification or statements expressing general optimism about future operating results or the impact of the ongoing investigations of the Securities and Exchange Commission and Department of Justice on us) 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, 2004. In particular, the achievement of projected levels of revenue, earnings, cash flow and debt levels will depend on our ability to execute our portfolio and global restructuring plans in a manner which satisfactorily addresses any resultant antitrust or labor issues and customer concerns, any contingent liabilities related to divestitures or integration costs associated with acquisitions, and other matters; our continued ability to diversify our customer base and still maintain existing GM business; the continued protection and exploitation of our intellectual property to develop new products and enter new markets; and our ability to capture expected benefits of our cost reduction initiatives so as to maintain flexibility to respond to adverse and cyclical changes in general economic conditions and in the automotive industry in each market we operate, including customer cost reduction initiatives, potential increases in warranty and raw material costs, pension contributions, healthcare costs, disruptions in the labor, commodities or transportation markets caused by terrorism or war and other changes in the political and regulatory environments where we do business. Delphi does not intend or assume any obligation to update any of these forward-looking statements.

Press Contacts: Carrie L. Wright (USA) Tel : +1 989 757 4043 carrie.wright@delphi.com Carsten Titt (Europe) + 49 (0)202 291 3679 Carsten.Titt@delphi.com