Delphi Files Modifications to First Amended Plan of Reorganization

Market Wire, October, 2008

Delphi Corp. (PINKSHEETS: DPHIQ) today announced it will file modifications to its confirmed First Amended Joint Plan of Reorganization and related modifications to its First Amended Disclosure Statement with the U.S. Bankruptcy Court for the Southern District of New York later today. Copies of these documents, which remain subject to approval by the Bankruptcy Court as part of the reorganization plan modification process, will be posted on www.delphidocket.com later today.

"Having substantially achieved all of the objectives identified in our 2006 transformation plan, today's filing represents a significant step that positions Delphi to move forward with the remaining elements of our Chapter 11 proceedings," said Rodney O'Neal, Delphi CEO and president.

Proposed modifications to the Confirmed Plan being filed today are outlined below:

                      Confirmed Plan                 Modified Plan
              ------------------------------ ------------------------------
Plan Investor Plan Investors' commitment to  No plan investors
              invest up to $ 2.55 billion
              ------------------------------ ------------------------------
Rights        $ 1.75 billion discount        $ 1.0 billion discount rights
Offering      rights offering                offering
              ------------------------------ ------------------------------
Net Funded    $ 4.7 billion                  $ 2.75 billion
Debt
              ------------------------------ ------------------------------
Revolver      $ 1.4 billion                  Up to $ 1.2 billion
              ------------------------------ ------------------------------
Total         Agreed plan value of $ 12.8    $ 7.2 billion
Enterprise    billion
Value
              ------------------------------ ------------------------------
Section       $ 1.5 billion                  The 414(l) Transfer was
414(l)                                       approved as part of the
Transfer                                     Amended GSA, which became
                                             effective on Sept. 29, 2008
                                             and is no longer a term of the
                                             Modified Plan. The transfer of
                                             approximately $ 2.2 billion in
                                             net unfunded liabilities was
                                             effective on Sept. 29, 2008;
                                             the transfer of approximately
                                             $ 1.0 billion of additional
                                             net unfunded liabilities is to
                                             occur upon consummation of the
                                             Modified Plan
              ------------------------------ ------------------------------
GM            $ 4.073 billion                Approximately $ 2.095 billion
              consisting of:                  consisting of:

              - $ 1.073 billion (in          - An allowed administrative
              liquidation amount) in         claim of $ 2.055 billion,
              junior preferred               which will be satisfied with
              securities                     non-voting convertible
                                             preferred stock (subject to
              - $ 1.5 billion, of which      certain provisions under
              least $ 750 million will be    which value may be allocated
              in Cash and the remainder      to unsubordinated general
              will be in a second lien       unsecured creditors)
              note with market terms

              - $ 1.5 billion in             - An allowed general unsecured
              connection with the            claim in the amount of $ 2.5
              effectuation of the            billion, which will be
              414(l) assumption              subordinated to the claims of
                                             other unsecured creditors
                                             until such creditors achieve
                                             a 20% recovery
              ------------------------------ ------------------------------
Unsecured     Par plus accrued recovery at   - Approximate 38.8% recovery
Creditors     plan value of $ 12.8 billion   for allowed general unsecured
              consisting of:                 claimholders  (excluding
                                             TOPrS Claims):
              - 78.6% in new common stock
              at plan equity value           - Approximate 20% recovery
                                             in the form of new common
              - 21.4% through pro rata       stock at plan equity value
              participation in discount
              rights offering at a 35.6%     - 18.8% through pro rata
              discount from plan equity      participation in Discount
              value                          Rights Offering at a 40%
                                             discount from plan equity
              - TOPrS Claims included in     value
              General Unsecured class
              with Senior Notes, trade       - TOPrS Claims included in
              claims, and SERP claims        General Unsecured class with
                                             Senior Notes, trade
                                             claims, and SERP claims,
                                             however, distributions on
                                             account of TOPrS Claims
                                             will be reallocated and
                                             redistributed due to the
                                             contractual subordination
                                             provision of the indenture
                                             governing the TOPrS Claims
              ------------------------------ ------------------------------
Postpetition  Postpetition Interest to be    No Postpetition Interest
Interest      paid on certain General
              Unsecured Claims
              ------------------------------ ------------------------------
Equity        Direct grant of new common     Opportunity to participate in
              stock of $ 28 million and      Post-Emergence Rights Offering
              Warrants valued at $ 321       through which new common stock
              million in the aggregate,      will be offered at a discount
              plus the opportunity to        (valued at approximately $ 100
              participate in a Par Value     million), the proceeds of
              Rights Offering                which will be used to redeem
                                             up to 25% of the  preferred
                                             stock issued to GM
              ------------------------------ ------------------------------