Delphi Signs Non-Binding LOI to Sell Battery Business to Johnson Controls

Delphi Signs Non-Binding LOI to Sell Battery Business to Johnson Controls

Statements attributable to J.T. Battenberg III, Chairman and CEO of Delphi Corporation

TROY, Mich., March 22 /PRNewswire/ -- Delphi Corporation (NYSE:DPH) has signed a non-binding letter of intent with Johnson Controls Inc. to sell our global lead-acid battery business for approximately $212.5 million. The transaction is subject to negotiation of definitive agreements, due diligence, completion of information and consultation procedures with the Works Councils in Europe, final negotiations with the UAW and IUE, and necessary corporate and regulatory approvals, as well as certain other closing conditions.

(Logo: http://www.newscom.com/cgi-bin/prnh/20020315/DEF002LOGO )

We are continuing to refine our product portfolio and the sale of this business frees up resources, helping us focus on our growing product lines for both original equipment and independent aftermarket customers.

Delphi has already consolidated the production of its Anaheim and Olathe battery operations into our two remaining battery operations at New Brunswick, New Jersey and Fitzgerald, Georgia. The ultimate disposition of Delphi's two remaining U.S. facilities will be determined based upon final negotiations with the UAW and IUE, and conclusion of the definitive acquisition agreement with JCI.

(Note: statements were also made during remarks at a Morgan Stanley conference today, March 22, 2005)

For more information about Delphi Corporation, please visit http://www.delphi.com/media

Forward-Looking Statement

All statements contained or incorporated in this press release which address operating performance, events or developments that we expect or anticipate may occur in the future (including statements relating to future sales or earnings expectations, savings expected as a result of our global restructurings or other initiatives, portfolio restructuring plans, volume growth, awarded sales contracts and earnings per share expectations or statements expressing general optimism about future operating results) are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are made on the basis of management's current views and assumptions with respect to future events. Important factors, risks and uncertainties which may cause actual results to differ from those expressed in our forward-looking statements are discussed in detail in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K for the year ended December 31, 2003. In particular, the achievement of projected levels of revenue, earnings, cash flow and debt levels will depend on our ability to execute our portfolio and other global restructuring plans in a manner which satisfactorily addresses any resultant antitrust or labor issues and customer concerns, any contingent liabilities related to divestitures or integration costs associated with acquisitions, and other matters; the success of our efforts to diversify our customer base and still maintain existing GM business; the continued protection and exploitation of our intellectual property to develop new products and enter new markets; and our ability to capture expected benefits of our cost reduction initiatives so as to maintain flexibility to respond to adverse and cyclical changes in general economic conditions and in the automotive industry in each market we operate, including customer cost reduction initiatives, potential increases in warranty costs, pension contributions, healthcare costs, disruptions in the labor, commodities or transportation markets caused by terrorism or war and other changes in the political and regulatory environments where we do business. Delphi does not intend or assume any obligation to update any of these forward-looking statements.

Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20020315/DEF002LOGO PRN Photo Desk, photodesk@prnewswire.com Source: Delphi Corporation

CONTACT: Luce Rubio of Delphi Media, +1-248-813-2618

Web site: http://www.delphi.com/media

Company News On-Call: http://www.prnewswire.com/comp/076666.html

------- Profile: Ent