Delphi Launches New Technology for Diesel Oil Condition Sensing

LUXEMBOURG -- (MARKET WIRE) -- January 18, 2007 -- A new type of diesel oil condition sensor, developed by Delphi Corp. (PINKSHEETS: DPHIQ), will help increase engine reliability, reduce warranty issues and bring further cost reductions for vehicle operators.

Compared with today's diesel oil sensing technologies, the Delphi system will further extend oil- and filter-change intervals, reduce the quantity of oil for disposal and help maximize the time vehicles spend on the road.

The new system is now available for integration with vehicle development programs.

Current production technologies measure the viscosity and dielectric constant of the oil, providing useful data from which an estimation of oil condition can be made. These technologies allow a significant increase in change intervals compared with the older predictive techniques that estimate condition based on the drive cycle.

Delphi's technology takes a further substantial step forward by providing additional information that will allow a much more accurate calculation of oil quality.

Delphi's new Oil Condition Sensor for diesel is extremely compact yet brings substantial benefits to vehicle manufacturers and their customers.

"The problem with measuring only two variables is that there are many interactions between oil characteristics that can not be extrapolated from this basic data," said Delphi advanced engineering manager Francisco Sanchez. "The measurements of viscosity and dieletric are effectively just an average of many interactions that affect these two parameters. To really understand oil quality, the system needs more data."

To illustrate the requirement for additional parameters, Sanchez points to the increasing need to monitor fuel dilution and soot content. The growing use of multiple post-injection events is leading to increasing amounts of fuel escaping past the piston rings, which reduces lubricity and decreases viscosity. A build up of soot, which reduces the effectiveness of additives and is a growing issue with increasing levels of EGR (exhaust gas recirculation), will increase viscosity. The measured viscosity will therefore be a combination of these two effects and not reflect the true degradation in oil quality.

Delphi's solution is to develop new, highly integrated techniques for measuring soot and fuel dilution alongside viscosity and dialectric. The same sensor can also measure oil temperature and level and is supplied in a compact package that can be engineered for pan or engine applications.

Fuel dilution is measured by a confidential modification to the proven viscosity measurement system, allowing low-cost and compact implementation of the additional sensing system. Soot is a carbon particle so can be detected by measuring changes in electrical conductivity. Delphi measures AC conductivity at 2-5MHz. The same sensor is also used to measure dielectric constant.

Existing production technologies measure viscosity by correlating it against a measured shear strength value. Delphi's solution is to measure the convection time of the oil when heated by a known amount.

"This is an incredibly elegant solution with a direct correlation to viscosity. We are getting amazingly accurate results, irrespective of oil type, soot content and other contamination," said Sanchez.

When the oil is changed, the sensor detects the step in parameter values and automatically resets. There is no re-calibration required if different oil types are used and no interaction is required from the service technician.

"This is a great example of Delphi's ability to use a clever yet simple design to provide substantial benefits to the vehicle buyers," said Guy Hachey, president, Delphi Powertrain Systems div. "Our new oil condition sensor for diesel will add value for our customers, helping them to gain a real advantage in an increasingly competitive market."

The new sensor will enter production in 2009 for an undisclosed truck customer.

Delphi is also discussing future programs with the military (transporting oil to field operations is a significant logistics cost) and with manufacturers of engines for off-highway applications. The sensor can also be used on light-duty diesel engines such as those fitted to many passenger cars.

For more information about Delphi, visit the Virtual Press Room.

This press release as well as other statements made by Delphi may contain forward-looking statements within the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 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. 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 DIP facility; the Company's ability to obtain court approval with respect to motions in the chapter 11 proceeding prosecuted by it from time to time; the ability of the Company to develop, prosecute, confirm and consummate one or more plans of reorganization with respect to the chapter 11 cases; 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; the ability of the Company to attract, motivate and/or retain key executives and associates; and the ability of the Company to attract and retain customers. Other risk factors are listed from time to time in the Company's SEC reports, including, but not limited to the annual report on Form 10-K for the year ended December 31, 2005 and its most recent quarterly report on Form 10-Q and current reports on Form 8-K. Delphi disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events 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 pre-petition liabilities, common stock and/or other equity securities. No assurance can be given as to what values, if any, will be ascribed in the bankruptcy proceedings to each of these constituencies. Accordingly, the Company urges that the appropriate caution be exercised with respect to existing and future investments in any of these liabilities and/or securities.

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