Delphi Answers Global Refrigerant Needs

Heating, ventilation and air-conditioning (HVAC) systemscontribute toglobal warming due to energy usage during operation andby refrigerantleakage into the atmosphere. The climate impact of the refrigerantitselfis defined as its Global Warming Potential (GWP). In 2006,the EuropeanUnion banned the use of refrigerants with a GWP that isgreater than 150for all new Type-Approvals (new vehicle platforms) from2011 and for allnew vehicles as of 2017. The current refrigerant, R-134a,has a GWP of1430.

Delphi is currently developing several options below the150 GWP level,including R-744, R-152a and refrigerant blends to help automakersmeet thelegislation in a way that is both cost effective for automakersand driversin the global community.

"Delphi has a long history with developing HVAC systemsfor alternativerefrigerants," said James Giardino, general director ofengineering, DelphiThermal Systems. "More than a decade ago we led the industrythrough themigration from CFC-12 (sometimes referred to as Freon®)to R-134a. We areusing that expertise again today to help automakers convertto newalternatives."

R-744 vs. R-152a vs. new blends

Carbon dioxide, formally known as R-744, when used as arefrigerant,virtually eliminates the global warming effect of refrigerantleakage, butits advantage is reduced in higher ambient climate conditions,due to itslower energy efficiency. Therefore, R-744 may be a solutionfor Central andNorthern Europe but would be difficult to adopt in areassuch as thesouthern United States, the Middle East, and the equatorialregions of theworld. Additionally, with R-744, its inherently high pressurerequiresredesign of major HVAC system components adding significantcosts andpresenting some safety concerns requiring resolution.

R-152a, commonly used as an aerosol propellant for hairsprays, shavingcreams, baby care products, dusting sprays and spray paints,offerscomparable climate performance to R-744. R-152a is currentlyproduced inChina, Japan, and the United States. Major current R-134athermal systemcomponents can be used with R-152a making the switch toR-152a a lesscostly conversion, from an industry investment point ofview. Additionally,R-152a systems use proven technology and have been shownto provide similarcomfort and performance as an R-134a system.

A key concern with R-152a has been its mild flammability,which Delphibelieves could be safely considered with the applicationof secondary looptechnology. Delphi's system keeps the R-152a entirely underthe hood andaway from the passenger compartment.

"Delphi's secondary loop system, coupled with Delphi's systemcontroller,can provide a 13 to 19 percent reduction in fuel usage bythe airconditioning system," said Giardino. "This is a valuableenergy savings."

Delphi is currently working with the United States EnvironmentalProtectionAgency (EPA) and a number of OEMs to demonstrate the valueof its R-152asystem to a global audience.

Additionally, a third set of options now exists. New refrigerantblends --mixtures of two or more refrigerants including newly-inventedmaterials --have been recently proposed and are currently under studyby automakers.Although potentially useful, these refrigerants create theneed to considerproduction-readiness timing and require exploration of safety,environment,stability and durability characteristics. Delphi continuesto work closelywith the global automotive industry to fully investigatethe potential useof these new refrigerant blends.

Delphi's Perspective

"We believe that too many uncertainties exist, at the presenttime, to getconsensus on a single solution for the global market," saidGiardino. "Theenvironmental impact, costs, service readiness, reliabilityand safety arejust a few reasons why a global switch to just one alternativerefrigerantmay not be possible right now. Delphi's goal is to offera range ofpossible viable refrigerant solutions to global automakersto meet theEuropean legislation."

"As we did 15 years ago with the conversion to R-134a, we'regoing to useour expertise and knowledge to help lead the industry'snext refrigeranttransition," he said. "We're actively engaged in helpingour OEM customersand the industry identify and implement the best solutionpossible."

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FORWARD-LOOKING STATEMENTS

This press release, as well as other statements made byDelphi, may containforward-looking statements that reflect, when made, theCompany's currentviews with respect to current events and financial performance.Suchforward-looking statements are and will be, as the casemay be, subject tomany risks, uncertainties and factors relating to the Company'soperationsand business environment which may cause the actual resultsof the Companyto be materially different from any future results, expressor implied, bysuch forward-looking statements. In some cases, you canidentify thesestatements by forward-looking words such as "may," "might,""will,""should," "expects," "plans," "anticipates," "believes,""estimates,""predicts," "potential" or "continue," the negative of theseterms andother comparable terminology. Factors that could cause actualresults todiffer materially from these forward-looking statementsinclude, but arenot limited to, the following: the ability of the Companyto continue as agoing concern; the ability of the Company to operate pursuantto the termsof the debtor-in-possession financing facility; the termsof anyreorganization plan ultimately confirmed; the Company'sability to obtainCourt approval with respect to motions in the chapter 11cases prosecutedby it from time to time; the ability of the Company to develop,prosecute,confirm and consummate one or more plans of reorganizationwith respect tothe chapter 11 cases; the Company's ability to satisfy theterms andconditions of the revised Equity Purchase and CommitmentAgreement; risksassociated with third parties seeking and obtaining Courtapproval toterminate or shorten the exclusivity period for the Companyto propose andconfirm one or more plans of reorganization, for the appointmentof achapter 11 trustee or to convert the cases to chapter 7cases; the abilityof the Company to obtain and maintain normal terms withvendors and serviceproviders; the Company's ability to maintain contracts thatare critical toits operations; the potential adverse impact of the chapter11 cases on theCompany's liquidity or results of operations; the abilityof the Company tofund and execute its business plan (including the transformationplandescribed in Item 1. Business "Potential Divestitures, ConsolidationsandWind-Downs" of the Annual Report on Form 10-K for the yearendedDecember 31, 2006 filed with the SEC) and to do so in atimely manner; theability of the Company to attract, motivate and/or retainkey executivesand associates; the ability of the Company to avoid or continueto operateduring a strike, or partial work stoppage or slow down byany of itsunionized employees and the ability of the Company to attractand retaincustomers. Additional factors that could affect future resultsareidentified in the Company's Annual Report on Form 10-K forthe year endedDecember 31, 2006, including the risk factors in Part I.Item 1A. RiskFactors, contained therein and the Company's quarterly periodicreports forthe subsequent periods, including the risk factors in PartII. Item 1A.Risk Factors, contained therein, filed with the SEC. Delphidisclaims anyintention or obligation to update or revise any forward-lookingstatements,whether as a result of new information, future events and/orotherwise.

Similarly, these and other factors, including the termsof anyreorganization plan ultimately confirmed, can affect thevalue of theCompany's various prepetition liabilities, common stockand/or other equitysecurities. Additionally, no assurance can be given as towhat values, ifany, will be ascribed in the bankruptcy cases to each oftheseconstituencies. A plan of reorganization could result inholders ofDelphi's common stock receiving no distribution on accountof theirinterest and cancellation of their interests. In addition,under certainconditions specified in the Bankruptcy Code, a plan of reorganizationmaybe confirmed notwithstanding its rejection by an impairedclass ofcreditors or equity holders and notwithstanding the factthat equityholders do not receive or retain property on account oftheir equityinterests under the plan. In light of the foregoing, theCompany considersthe value of the common stock to be highly speculative andcautions equityholders that the stock may ultimately be determined to haveno value.Accordingly, the Company urges that appropriate cautionbe exercised withrespect to existing and future investments in Delphi's commonstock orother equity interests or any claims relating to prepetitionliabilities.