To meet the increasing demand for vehicle software, Delphi Automotive Systems (NYSE: DPH - news) has announced the establishment of a software technical center in Bangalore, India. The new Delphi Technical Center India will open in 2000 to develop software for Delphi's worldwide vehicle applications.

The center will eventually employ about 250 people and is located at the International Technology Park in Bangalore.

The majority of the employees will develop microprocessor software used in embedded controls for electronic systems such as engine and powertrain controllers, antilock brakes, radios, instrument clusters and air control systems.

"As computing platforms in the vehicle continue to expand in size and number, the need for software to support these platforms is increasing dramatically," said Dave Wohleen, Delphi Automotive Systems executive vice president and president of the Electronics & Mobile Communications Sector. "The establishment of our new tech center will help Delphi keep pace with this rapidly increasing demand."

Delphi's Technical Center India is part of a concerted effort at Delphi to meet the increasing demand for and growth of software in the automotive environment. The recent rapid increase in demand for mobile multimedia products in vehicles has dramatically increased Delphi's need for vehicle software engineering and development. In addition to the new tech center, Delphi Delco Electronics Systems is currently recruiting software, design and test engineers for this growing segment in the U.S.

Delphi, the leader in mobile multimedia products, has booked $2.9 billion dollars in mobile multimedia business for its telematics, smart radios and rear seat entertainment systems. The business was recently placed in a new aggressive growth product line category and structure to intensify the company's focus on mobile communication and the mobile multimedia market.

"This initiative is necessary to meet ever-increasing customer requirements for our growth product lines around the world," said Jeff Owens, general director of engineering for Delphi Delco Electronics Systems. "Tech Center India will offer Delphi access to the intellectual resources found in Bangalore, a city known as the electronics software capital of Asia. Also, we know that engineering is a 24-hour-a-day activity in today's global business environment."

Delphi's U.S. and Indian sites are linked in a global Delphi engineering network. Through web-enabled design and development tools, the company can keep projects moving forward around the clock. This capability is especially important since mobile electronics product development lead times track the computer industry which has cycle times that are a lot more rapid than the current automobile development cycles.

"We have had a presence in Bangalore for more than four years and are very confident that the expertise and experience available here supports our objectives," said Ashok B. Ramaswamy, director of Technical Center India. The initial focus of the new technical center will be on automotive embedded systems that depend on software as the medium for providing product features, differentiation and adaptability to different vehicle customers, according to Ramaswamy.

"Delphi's competitive strength depends on our ability to continually develop new products and technologies for our global markets," said James A. Spencer, Delphi vice president and president of Delphi Asia Pacific. "Technical Center India will enhance our global engineering capability by tapping the abundant technical talent available in this region."

The center will become a part of Delphi's global competency that links its engineering structure and resources around the globe. Delphi also has software capabilities in North America and Europe.

Technical Center India is expected to expand to offer additional expertise in Computer Aided Engineering, Electrical Computer Aided Design, Mechanical Computed Aided Design and more Research & Development. Initially, in addition to software engineers from Delphi Delco Electronics Systems, the center will house approximately 15 systems, mechanical, electrical and manufacturing engineers from other Delphi divisions. Other divisions represented at the center will include Delphi Energy & Chassis Systems, Delphi Thermal Systems, Delphi Steering Systems and Delphi Research and Development.

Delphi Automotive Systems, headquartered in Troy Mich., USA, is a world leader in transportation and mobile electronics components and systems technology. Delphi's three business sectors -- Dynamics & Propulsion; Safety, Thermal & Electrical Architecture; and Electronics & Mobile Communication -- provide comprehensive product solutions to complex customer needs. Delphi has approximately 213,000 employees and operates 175 wholly owned manufacturing sites, 41 joint ventures, 53 customer centers and sales offices and 27 technical centers in 38 countries. Regional headquarters are located in Paris, Tokyo, and Sao Paulo, Brazil. Delphi can be found on the Internet at www.delphiauto.com.

Forward-Looking Statements

This press release, other than historical financial information, contains forward-looking statements that involve a number of risks and uncertainties. Important factors that could cause actual results to vary materially from those anticipated in the forward-looking statements are set forth in Delphi's Securities and Exchange filings, including without limitation, Delphi's Annual Report on Form 10-K for the fiscal year ended December 31, 1999.