Delphi Introduces Innovative Condenser Cooling Fans

DALLAS TX -- (MARKET WIRE) -- Jan 25, 2007 -- Delphi Corporation (PINKSHEETS: DPHIQ) has launched a new generation of metal axial fans designed for the residential and light commercial Heating, Ventilation and Air Conditioning (HVAC) market, company officials announced today.

This new product portfolio uses leading-edge air management technology to help HVAC manufacturers design higher efficiency products and ultimately take cost out of their system. Designed for condensing unit and heat pump applications, the portfolio will be featured here at the 2007 AHR Expo, Jan. 29-31 at the Dallas Convention Center (exhibit 5147).

Delphi's metal axial fan portfolio represents a major technological advancement -- one of only a few new developments in metal axial fans for HVAC applications over the last 30 years. Featuring curved blades that manage turbulence and streamline the air after contact with the fan, Delphi's axial fans offer an unparalleled combination of efficiency improvement and noise control.

This highly streamlined fan blade technology helps HVAC engineers design higher efficiency systems. Using Delphi's patented fan technology, HVAC manufacturers may significantly reduce the amount of power required to run their condenser fans. Studies performed both by Delphi and major HVAC Original Equipment Manufacturers (OEMs) have proven that this blade technology can increase efficiency by 30 percent to 35 percent as compared to other premier fans in the marketplace, which generally focus on noise reduction alone. HVAC OEMs may also be able to use Delphi's metal axial fans to increase airflow volume by 12 percent to 15 percent without having to increase power to the fan motor.

Since Delphi's axial fans require less power, HVAC manufacturers may be able to downsize their fan motors or the condenser coils in their systems, to reduce system level expense and satisfy consumer demand for affordable high-efficiency HVAC systems.

Whichever approach they choose, HVAC manufacturers should be able to use Delphi's metal axial fans to more proficiently meet or exceed the minimum 13 SEER (Seasonal Energy Efficiency Ratio) rating now required for all residential HVAC systems. Plus, this improved efficiency does not create a noise penalty -- and the noise level often goes down when Delphi's metal axial fans are used in an HVAC system.

"Our fans give HVAC manufacturers an option that can help them take their systems to higher efficiency levels," said Ray Johnson, product business unit director, Delphi Thermal Systems. "And our fans can help HVAC manufacturers achieve overall systems cost reductions that can improve their profitability."

The introduction of Delphi's condenser fan portfolio for the stationary HVAC market demonstrates the company's commitment to non-automotive markets. Delphi's vast experience in the design and manufacturing of HVAC systems for automotive applications translates into a clear understanding of the component needs of non-automotive HVAC manufacturers. In addition, the company is already working on utilizing this technology for indoor furnace blower wheels and housings.

Delphi developed this fan technology through a license agreement with PaxFan, utilizing technology developed by PAX Scientific, Inc., an industrial design firm based in San Rafael, Calif.

"The HVAC industry has seen a lot of air movement technology development in the form of different kinds of fans and related applications," said Chris Day, Delphi global commercial sales manager. "We believe that our customers, and hopefully their customers, will find the value proposition of the PaxFan technology and Delphi's application of it truly impressive. There has not been anything else that has advanced the efficiency of metal axial fans in the HVAC market this far forward in a long time."

Delphi's fan portfolio features a wide range of sizes for a variety of applications and, in addition to its standardized portfolio, Delphi can customize its products for HVAC manufacturers with unique applications.

For more information about Delphi's new air movement technology and other components that the company has developed for the stationary HVAC market, visit Exhibit 5147 at the Dallas Convention Center during the 2007 AHR Expo. Additional details are also available from Chris Day or Mark J. Parisi, product line manager, air management systems.

For more information about Delphi and its subsidiaries, visit Delphi's media room at


This press release, as well as other statements made by Delphi, may contain forward-looking statements that reflect, when made, the company's current views with respect to current events and financial performance. Such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the company's operations and business environment which may cause the actual results of the company to be materially different from any future results, express or implied, by such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following: the ability of the company to continue as a going concern; the ability of the company to operate pursuant to the terms of the debtor-in-possession facility; the company's ability to obtain court approval with respect to motions in the chapter 11 cases prosecuted by it from time to time; the ability of the company to develop, prosecute, confirm and consummate one or more plans of reorganization with respect to the Chapter 11 cases; the company's ability to satisfy the terms and conditions of the Equity Purchase and Commitment Agreement with its Plan Investors; the company's ability to satisfy the terms and conditions of the Plan Framework Support Agreement with GM and its Plan Investors (including the company's ability to achieve consensual agreements with GM and its U.S. labor unions on a timely basis that are acceptable to the Plan Investors in their sole discretion); risks associated with third parties seeking and obtaining court approval to terminate or shorten the exclusivity period for the company to propose and confirm one or more plans of reorganization, for the appointment of a chapter 11 trustee or to convert the cases to chapter 7 cases; the ability of the company to obtain and maintain normal terms with vendors and service providers; the company's ability to maintain contracts that are critical to its operations; the potential adverse impact of the Chapter 11 cases on the company's liquidity or results of operations; the ability of the company to fund and execute its business plan (including the transformation plan described in Item 1. Business "Potential Divestitures, Consolidations and Wind-Downs" of the Annual Report on Form 10-K for the year ended December 31, 2005 filed with the SEC) and to do so in a timely manner; the ability of the company to attract, motivate and/or retain key executives and associates; the ability of the company to avoid or continue to operate during a strike, or partial work stoppage or slow down by any of its unionized employees; and the ability of the company to attract and retain customers. Other risk factors are listed from time to time in the company's United States Securities and Exchange Commission reports, including, but not limited to the Annual Report on Form 10-K for the year ended December 31, 2005. Delphi disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events and/or otherwise.

Similarly, these and other factors, including the terms of any reorganization plan ultimately confirmed, can affect the value of the company's various pre-petition liabilities, common stock and/or other equity securities. Additionally, no assurance can be given as to what values, if any, will be ascribed in the bankruptcy proceedings to each of these constituencies. A plan of reorganization could result in holders of Delphi's common stock receiving no distribution on account of their interests and cancellation of their interests. Under certain conditions specified in the Bankruptcy Code, a plan of reorganization may be confirmed notwithstanding its rejection by an impaired class of creditors or equity holders and notwithstanding the fact that equity holders do not receive or retain property on account of their equity interests under the plan. In light of the foregoing and as stated in its October 8, 2005, press release announcing the filing of its Chapter 11 reorganization cases, the company considers the value of the common stock to be highly speculative and cautions equity holders that the stock may ultimately be determined to have no value. Accordingly, the company urges that appropriate caution be exercised with respect to existing and future investments in Delphi's common stock or other equity interests or any claims relating to pre-petition liabilities.

John Shea
Delphi Corporation

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