Delphi Continues to Meet Changing Market Demands by Expanding Their High Tech Electric Steering Portfolio and Securing New Business

Delphi Automotive Systems (NYSE: DPH - news) announced today more than $1 billion in electric power steering contracts secured during the first half of 2000.

Delphi's successful launch of its E*STEER(TM) Electric Power Steering System last fall on the Fiat Punto has brought them new customers in both Europe and the United States. Four new contracts with three customers will bring Delphi more than $1 billion in sales revenue over a five-year period, which is in addition to two current production contracts. As further evidence of Delphi's leadership position in the electric steering market, four electric power steering customer development contracts have also been secured this year.

In addition to the E*STEER contracts, Delphi is moving forward with its advanced front and rear electric steering systems. Delphi currently has three steer-by-wire development contracts with European and American vehicle manufacturers.

"These electric steering contracts are strategically important to Delphi from a growth standpoint and serve to validate our leadership in this exciting technology transition," explained Paul J. Tosch, Delphi Saginaw Steering Systems president and Delphi Automotive Systems vice president. "We expect more than $ 1 billion in annual sales for our electric steering systems, including rear steering systems, by the year 2005."

E*STEER Improves Fuel Economy

The E*STEER system's fully-electric, engine-independent design eliminates the traditional hydraulic power steering system's pump, hoses, hydraulic fluid and drive belt and pulley on the engine which helps improve fuel economy. In fact, E*STEER improves overall fuel economy by an average of five percent compared to a traditional hydraulic steering system. The system's mileage impact by vehicle type ranges from 1.3 miles per gallon increase for subcompact vehicles to .45 miles per gallon increase for mid- to large-size passenger vehicles. This fuel economy benefit, along with E*STEER's variable effort steering, assisted return-to-center and power steering with the engine off for added safety, provides significant added value to the end-consumer compared to traditional hydraulic steering systems.

Full-Size Vehicle Applications

Delphi is moving quickly into the development of electric power steering systems for full-size vehicles, including sport utilities and light trucks, with its E*STEER Rack Assist design. This scaleable system is suitable for a full range of vehicles from compact to full-size. In addition, the E*STEER Rack Assist system will allow vehicle manufacturers to leverage existing mechanical hardware for future 42-volt applications resulting in cost savings and better manufacturing capability.

The controller, sensor and actuator technology used in Delphi's E*STEER system is the basis for the development for other advanced electric steering systems, including front and rear steer-by-wire systems.

Delphi's QUADRASTEER(TM) Four Wheel Steering System is an electric rear steering system that will debut on a General Motors' 2002 full-size pickup truck yet to be announced. This unique application of four wheel steering allows a full-size vehicle to maneuver like a passenger car. In addition, steering with all four wheels enhances stability at highway speeds and significantly improves trailering capabilities.

Both E*STEER and QUADRASTEER offer the manufacturer quick tuning capabilities with a laptop computer, which significantly reduces development time and provides the opportunity to achieve better performance than a traditional hydraulic system. By electronically altering sophisticated algorithms, or mathematical formulas, both systems can be tuned quickly and precisely to meet varying vehicle handling specifications for each vehicle manufacturer.

"It has been very exciting to watch how our engineers have been able to utilize state-of-the-art electronics to significantly enhance the performance and value of the steering system," said Tosch. "And this is only the beginning. The expertise we have gained from engineering and manufacturing E*STEER and developing steer-by-wire technology is serving as a solid foundation in our development of future smart integrated chassis systems."

Multi-national Delphi Automotive Systems, with headquarters in Troy, Mich., USA, Paris, Tokyo and Sao Paulo, Brazil, is a world leader in mobile electronics and transportation 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 216,000 employees and operates 179 wholly owned manufacturing sites, 41 joint ventures, 53 customer centers and sales offices and 31 technical centers in 39 countries. Delphi can be found on the Internet at www.delphiauto.com