Delco Electronics Integration a "Window to Technology" for Delphi Automotive Systems.

TROY, Mich.--(BUSINESS WIRE)--Dec. 18, 1997--Delphi Automotive Systems and Delco Electronics announced to their employees today that the transfer of Delco Electronics from Hughes Electronics Corporation to the Delphi organization has received stockholder approval and been completed.

With completion of the transaction, Delco Electronics will operate under a new name, Delphi Delco Electronics Systems, and will function as an integrated operating division of Delphi Automotive Systems. Combined 1996 sales for the two organizations exceeded $30 billion. Delphi Delco Electronics Systems capabilities as a technological innovator will further strengthen Delphi's ability to provide single-source expertise in vehicle components and systems to customers around the world.

In his communications with employees, J. T. Battenberg III, president of Delphi Automotive Systems, said that the integration of Delphi Delco Electronics Systems into the Delphi organization creates a "unique strategic advantage" for the company.

"As vehicle manufacturers call for increased electronics in their components and systems, Delphi Automotive Systems now has an unmatched portfolio of electronically enhanced vehicle systems," Battenberg said. "Our window to technology, widened by the addition of Delphi Delco Electronics Systems, increases the `smarts' of Delphi's products, broadens the Delphi product portfolio and injects new growth potential into our combined businesses."

To achieve that potential for growth, Battenberg said combining the two organizations will be, "significantly more than just adding another division."

"The expertise of Delphi Delco Electronics Systems is being fully integrated into Delphi's worldwide systems and operations, working in full partnership with all of our divisions," he said.

Battenberg said the integration will proceed quickly, noting that the former Delco Electronics office in Troy, Mich. will be closed before year-end, with the employees moving into the Delphi Headquarters and Customer Center. Additionally, more than 400 engineers from Delphi Delco Electronics Systems are already co-located in Delphi facilities around the world.

The two organizations have demonstrated their combined capability, developing products such as Traxxar, the intelligent chassis control system, and E-STEER, Delphi's premium electric power steering system.

Delphi Automotive Systems, with headquarters in Troy, Michigan, U.S.A., is the world's most diversified supplier of automotive components and systems. With the addition of Delphi Delco Electronics Systems, Delphi operates 208 manufacturing facilities, 46 joint ventures and 17 technical centers in 36 countries. Regional headquarters are located in Paris, Tokyo and Sao Paulo. Delphi can be found on the Internet at http://www.delphiauto.com.