Strong North American Market Drives Increased Sales Revenue As Delphi Posts Solid Third-Quarter Results/ Cash Generation Remains Strong - Supporting $300 Millio

TROY, Mich. (PROTEXT) - Sales up 18 Percent Over Strike-Depressed Q3 1998 - Non-GM Sales Climb Propelled by strong North American volumes and continuedincreases in sales to customers other than General Motors, DelphiAutomotive Systems (NYSE: DPH) today reported earnings of $136million, or $0.24 per share on a diluted basis. "The third quarter is typically a challenging period for us,"said Delphi Chairman, Chief Executive Officer and President J.T.Battenberg III. "This year, despite the usual production changesfor the new model year and the seasonality of OEM schedules, wewere able to post very solid results. These results reflect thecontinued strong North American vehicle market as well asincreases in sales to customers other than GM." The $136 million in third-quarter net income compares to a proforma, strike-impacted third quarter 1998 loss of $214 million*,or ($0.38) per share on a diluted basis. Sales revenue of $6.8 billion was up 18 percent over strike-impacted 1998 levels after adjusting for the impact of businessesdivested in late 1998. Sales to customers other than GM totaled$1.7 billion for the quarter, climbing 16 percent on a comparablebasis. The increased sales revenue is largely the result of newDelphi content on several vehicle models that went intoproduction this quarter. Importantly, the third quarter markedthe start of production of the 2000 Fiat Punto featuring Delphi'sE-STEER(TM) Electric Power Steering system, several Volkswagenmodels featuring Delphi's Monsoon(TM) audio system, the 2000 LandRover Discovery featuring Delphi's Dynamic Body Control system,and the 2000 Jaguar XKR sports coupe featuring Delphi'sFOREWARN(TM) Adaptive Cruise Control system. *See attached highlights for description of 1998 pro forma netloss and 1998 shares outstanding calculations. Balance Sheet/Cash Generation Delphi generated $484 million in operating cash flow duringthe quarter, primarily driven by improvements in working capitaland the high cash content of earnings. This continued strong cashgeneration allowed Delphi to make a pension contribution of $300million, bringing the total voluntary pension contributions forthe year to $900 million. "The pension contributions strengthen our balance sheet anddemonstrate our commitment to fund employee pension plans," saidDelphi's Chief Financial Officer Alan Dawes. "This actiondelivers value to our shareholders by positively influencing ourearnings in 2000 and beyond." The Delphi Board of Directors also announced a regularquarterly dividend of $0.07 per share on Delphi $0.01 par valuecommon stock. The dividend is payable October 18, 1999, toshareholders of record as of September 20, 1999. New Business Bookings In line with the company's objective of diversifying itscustomer base, Delphi booked new business totaling $2 billionwith customers other than GM. In addition, the company booked $8billion of new business with its largest customer, GM. The impactof this new business will be reflected in Delphi's revenues inthe years 2001 and beyond, over an average five-year contractlife. In addition, Delphi yesterday announced it signed asignificant contract with Caterpillar Inc., the world's leadingmanufacturer of construction and mining equipment, diesel andnatural gas engines, and industrial gas turbines. Delphi DelcoElectronics Systems, a division of Delphi, will co-develop enginecontrollers for all of Caterpillar's diesel engines and manyCaterpillar machines starting in mid-2001. In addition, DelphiDelco will partner with Delphi Energy & Engine ManagementSystems, also a Delphi division, to develop a new line ofhydraulic control modules for Caterpillar. Other contracts* announced during the quarter include: - PSA Peugeot Citroen -- wiring harnesses for a 2001 modelyear vehicle - Volkswagen -- airbags for a future global program - Opel -- driver and passenger airbags for a program on aglobal basis - DaimlerChrysler -- Level 3 Modular Door Systems for theMercedes-Benz Actros - DaimlerChrysler -- modular cockpits for the M-Class througha four-year contract with Mercedes-Benz U.S. International inGraz, Austria Aftermarket Separately, Delphi today announced the creation of a newdivision, Delphi Aftermarket, to bolster its brand support andsales in the aftermarket. The announcement was made at Equip'Auto, a vehicle and aftermarket show in Paris.** SectorFinancial Results Sector

Q3 1999 Q3 1998 Q3 1999

Q3 1998

Sales

Sales Operating (Pro FormaBasis)

Income

OperatingIncome

(Loss)

(Loss) Electronics & Mobile Communication

$1,225

$995

$110

$(13) Safety, Thermal & Electrical Architecture

2,445

2,126

62

19 Dynamics & Propulsion

3,267

2,749

46

(187) Other***

(147)

(101)

(12)

(91) Sales, Divested Business

--

246

--

-- Total

$6,790

$6,015

$206

$(272) * While these contracts are significant, they do notrepresent a complete listing of contracts awarded during theperiod. Delphi respects customer confidentiality and thereforedoes not disclose all contracts awarded. Unless Delphi receivescustomer permission, it does not discuss customer businessinformation with any external audience. ** Press release is available at http://www.delphiauto.com. *** Corporate and intra-company items. Delphi Automotive Systems, with headquarters in Troy, Mich.,USA, is a world leader in automotive components and systemstechnology. Delphi's three business sectors -- Dynamics &Propulsion; Safety, Thermal & Electrical Architecture; andElectronics & Mobile Communications -- provide comprehensivesolutions to complex customer needs. Delphi has approximately201,000 employees and operates 168 wholly owned manufacturingsites, 38 joint ventures, 51 customer centers and sales offices,and 27 technical centers in 37 countries. Regional headquartersare located in Paris, Tokyo and Sao Paulo, Brazil. Delphi can befound on the Internet at http://www.delphiauto.com. Forward Looking Statements The Private Securities Litigation Reform Act of 1995 (the"Act") provides a safe harbor for forward-looking statements madeby us or on our behalf. All statements which address operatingperformance, events, or developments that we expect or anticipatemay occur in the future, including statements relating to volumegrowth, awarded sales contracts, and earnings per share growth orstatements expressing general optimism about future operatingresults, are forward looking statements. These statements aremade on the basis of management's views and assumptions; as aresult, there can be no assurance that management's expectationswill necessarily come to pass. A list of factors which couldimpact future events and performance is included in the DelphiAutomotive Systems Corporation 1998 Annual Report on Form 10-Kfiled with the Securities and Exchange Commission. ots OriginalText Service: Delphi Automotive Systems Internet:http://www.newsaktuell.de Contact: Peter C. Rowe, 248-813-2985,or Jennifer L. Tew, 248-813-2527, both of Delphi AutomotiveSystems (in the USA) Company News On-Call:http://www.prnewswire.com/comp/076666.html or fax, 800-758-5804,ext. 076666 (in the USA) Web site: http://www.delphiauto.com

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