DELPHI'S ROBUST SECOND QUARTER RESULTS
          DRIVEN BY STRONG VOLUMES AND AGGRESSIVE PORTFOLIO MANAGEMENT

        Earnings Per Share Climb 283 Percent - In Line With Expectations
                      Significant Cash Generation Continues

         TROY, MICH. - Driven by strong revenue growth,  the favorable impact of
the strategic sale of underperforming assets in 1998, and continuing significant
cash flow, Delphi  Automotive  Systems today reported second quarter earnings of
$394 million, or $0.69 per share on a fully diluted basis*.
         "Growth in sales to all  customers,  coupled  with the results from our
aggressive   portfolio   management,   generated   significant   value   to  our
shareholders,"  said J.T.  Battenberg III,  Delphi's  chairman,  chief executive
officer and president. "The results from our second quarter validate our plan to
grow profitability by reducing costs and diversifying our customer base."
         The  results  represent  an  increase  of 290  percent  over pro forma,
strike-impacted,  second  quarter  1998  earnings of $101  million,**  and a 283
percent  increase over pro forma 1998 second quarter diluted  earnings per share
of $0.18**.
         Sales revenue climbed 17 percent over 1998 strike-impacted levels, from
$6.6  billion to $7.7  billion,  after  adjusting  for the impact of  businesses
divested in late 1998 (divested  businesses had average annual sales of about $2
billion).

 *  Delphi CFO Alan Dawes will host a media conference call to discuss earnings
   beginning at 10:15 a.m. today.  See bottom of release for details.
 **See attached highlights for description of 1998 pro forma net income and 1998
   shares outstanding calculations.


- more -


<PAGE>


         Sales to customers  other than General Motors Corp. (GM) increased $174
million,  or 11.4  percent,  from $1.523  billion in the second  quarter of 1998
(excluding the impact of  divestitures)  to $1.697 billion during the comparable
period in 1999.  This is the second  consecutive  quarter  where the company has
exceeded the stated goal of a 10 percent annual increase in non-GM sales growth.
Sales to GM rose 18.4 percent  (adjusted  for the impact of  divestitures)  from
strike depressed 1998 levels.

Cash Generation Enhances Capital Structure
         Delphi  generated  $751 million in  operating  cash during the quarter,
resulting from working capital improvements, timing of capital expenditures, and
strong profitability.
         This strong  year-to-date  cash flow provided Delphi the flexibility to
make a $600 million  voluntary  contribution  to its hourly pension fund on June
14, while improving its overall  liquidity  position.  Additionally,  the Delphi
Board of Directors  on June 9 declared a quarterly  dividend on Delphi $0.01 par
value  common  stock of $0.07 per share.  The  dividend  -  Delphi's  first - is
payable July 20, 1999 to shareholders of record as of June 21, 1999.
         Taking into account the strong cash flow during the  quarter,  Delphi's
Board of  Directors  approved a treasury  stock  program  to  purchase  up to 19
million  shares  of  Delphi  Common  Stock  from  time to time to  pre-fund  the
requirements of employee  incentive,  stock option and stock purchase plans over
the next 12 months.

New Business
         Booked business for the six-month period ending June 30, 1999,  totaled
$15 billion over an average 5-year contract life. The impact of these sales will
be reflected in the revenue base from 2001 forward.  Contracts signed during the
quarter include  significant  expansion of business with Nissan Motor Co., Ltd.,
which awarded  Delphi a contract to provide  STEER-LITETM  lightweight  integral
steering gears for all Nissan trucks,  including the Nissan  Frontier and Xterra
sport utility vehicles, beginning with Nissan's 2000 model year.
                                    - more -

         Additional  agreements  - among  others* - signed  during  the  quarter
include:

  o  A contract  with Ford Motor  Company to serve as the  electrical/electronic
     vehicle system integrator for a future Ford vehicle.
  o  The award of 21 occupant  protection system contracts  totaling over $750
     million,  and the   expansion of five  existing  contracts  to  incorporate
     Delphi's  Adaptive  Restraint TechnologiesTM or "smart" airbag  technology.
  o  A contract with  Ferrari  to  provide  complete  HVAC responsibility on the
     new 360 Modena  model.
  o  A contract to provide wiring for Mack Trucks,  Inc.'s entire fleet of Clas
     8 heavy-duty  trucks.
  o  The $28 million award of new contracts to supply brake and suspension
     components,  modules and systems to two vehicle manufacturers  in the Asian
     markets  and one in Europe.
  o  A  contract  to supply  complete  thermal  management systems for a vehicle
     program Daewoo Motor Polska Corporation will build in Europe.

*Delphi respects customer  confidentiality,  and therefore does not disclose all
contracts  received.  Unless Delphi receives  customer  permission,  it does not
discuss customer business information with any external audience.

Delphi Independence
         On May 28, GM completed the full separation of Delphi via a spin-off of
452.6 million Delphi shares to GM stockholders,  and the contribution of another
12.4 million shares to a GM retiree benefit trust. In the $9.3 billion  tax-free
distribution,  GM  stockholders  received  about 0.70 Delphi  shares for each GM
common share they owned. Following the spin-off, all GM executives resigned from
Delphi's Board of Directors.  Also, Thomas G. Labrecque,  former chairman of The
Chase Manhattan Corporation, joined the board effective July 15, 1999.
         During the  quarter,  Delphi  stock was added to the  Standard & Poor's
500, the Russell 1000 and 3000, and the Wilshire 5000 indices.




                                    - more -

<PAGE>




Sector Financial Results ($ millions)

<TABLE>
<CAPTION>

                                                                                   Q2 1998
                                   Q2 1999     Q2 1998       Q2 1999          (Pro-Forma Basis)
  Sector                             Sales      Sales    Operating Income     Operating Income
  ------                           -------     -------   ----------------     ----------------



<S>                                <C>         <C>            <C>                    <C>
Electronics & Mobile
Communication                      $ 1,396     $ 1,134        $ 180                  $ 44

Safety, Thermal & Electrical
Architecture                         2,767       2,907          249                    91

Dynamics & Propulsion                3,670       3,104          221                    62

Other*                                (150)       (104)         (21)                  (58)

Sales, Divested Business                -         (463)          -                     -
                                   -------     -------        -----                 -----
Total                              $ 7,683     $ 6,578        $ 629                 $ 139
                                   =======     =======        =====                 =====

*Corporate and intra-company items
</TABLE>

         Delphi  Automotive  Systems,  headquartered in Troy,  Mich.,  USA, is a
world leader in automotive  components  and systems  technology.  Delphi's three
business  sectors  -  Dynamics  &  Propulsion;   Safety,  Thermal  &  Electrical
Architecture;  and Electronics & Mobile  Communications - provide  comprehensive
product solutions to complex customer needs.  Delphi has  approximately  201,000
employees and operates 168 wholly owned manufacturing  sites, 38 joint ventures,
51 customer centers and sales offices and 27 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. HIGHLIGHTS ATTACHED




                                    - more -


<PAGE>


Forward Looking Statements

The Private Securities Litigation Reform Act of 1995 (the "Act") provides a safe
harbor  for  forward-looking  statements  made  by  us  or on  our  behalf.  All
statements which address operating  performance,  events or developments that we
expect or anticipate may occur in the future,  including  statements relating to
volume  growth,  awarded  sales  contracts  and  earnings  per  share  growth or
statements  expressing  general  optimism about future  operating  results,  are
forward  looking  statements.   These  statements  are  made  on  the  basis  of
management's views and assumptions;  as a result, there can be no assurance that
management's expectations will necessarily come to pass. A list of factors which
could impact future events and performance is included in the Delphi  Automotive
Systems  Corporation  1998 Annual Report on Form 10-K filed with the  Securities
and Exchange Commission.

Media Conference Call

Delphi Chief Financial  Officer Alan Dawes will host a media  conference call to
discuss Delphi's  earnings from 10:15-11:00 a.m. EDT the same day. The call will
include  remarks by Dawes followed by an  opportunity  for  participants  to ask
questions.  North American media, including Canada and Mexico, should call (800)
374-2370 to participate.  A replay of the call will be available from 12:30 p.m.
EDT on July 19 to 12:30 p.m. EDT on July 20. To listen to the replay, members of
the press  calling  from North  America  should call (800)  642-1687  and,  when
prompted, enter the conference identification number, 442973.





<PAGE>


                                       -6-

        HIGHLIGHTS - Three months ended June 30, 1999 vs. pro forma three
                     months ended June 30, 1998 comparison


<TABLE>
<CAPTION>


                                                                 Three Months Ended
                                                                      June 30,
                                                                 1999          1998 (1)
                                                                 ----          --------
                                                           (in millions, except per share
                                                                      amounts)

       Net sales:
<S>                                                            <C>             <C>
         General Motors.......................                 $ 5,986         $  5,449
         Other customers......................                   1,697            1,592
                                                               -------          -------
           Total net sales....................                   7,683            7,041
       Less operating expenses:
         Cost of sales, excluding items listed below             6,453            6,218
         Selling, general and administrative..                     394              401
         Depreciation and amortization........                     207              283
                                                                -------         -------
       Operating income ......................                     629              139
       Less interest expense..................                      36               67
       Other income, net .....................                      42               55
                                                                -------         -------
       Income before income taxes.............                     635              127
       Income tax expense ....................                     241               26
                                                                -------         -------
       Net income ............................                  $  394          $   101
                                                                ======          =======

        Gross margin                                             16.0%            11.7%
        Operating income margin                                   8.2%             2.0%
        Net income margin                                         5.1%             1.4%

 .............................................................................................

           Diluted earnings per share (2)                      $  0.69          $   0.18
                                                               =======          ========

 .............................................................................................
</TABLE>


       (1)Results of  operations  for the three  months ended June 30, 1998 have
          been  adjusted  to reflect  the impact of the terms of our  separation
          from GM. Overall the adjusted  results reflect the net effect of lower
          employee   benefit  costs  and  higher  other  costs  associated  with
          operating Delphi as a stand-alone  company.  See the reconciliation of
          actual to pro forma  results for the three  months ended June 30, 1999
          for additional information.

       (2)Diluted  earnings  per share are  presented  as if the initial  public
          stock  offering  (IPO) of 100 million  shares took place on January 1,
          1998,  resulting  in  567  million  and  565  million  diluted  shares
          outstanding  during the three  months  ended  June 30,  1999 and 1998,
          respectively.




                                      -7 -

        HIGHLIGHTS - Three  months  ended  June  30,  1998  -
                     Reconciliation of actual to pro forma results

<TABLE>
<CAPTION>


                                                             Three Months Ended June 30, 1998
                                                           Actual       Adjustments     Pro forma
                                                           ------       -----------     ---------
                                                          (in millions, except per share amounts)

       Net sales:
<S>                                                       <C>                            <C>
         General Motors.......................            $ 5,449                        $ 5,449
         Other customers......................              1,592                          1,592
                                                          -------                        -------
           Total net sales....................              7,041                          7,041
       Less operating expenses:
         Cost of sales, excluding items listed below        6,280        $   (62) (1)      6,218
         Selling, general and administrative..                367             34  (1)        401
         Depreciation and amortization........                283                            283
                                                          -------        -------         -------
       Operating income ......................                111             28             139
       Less interest expense...................                67                             67
       Other income, net .....................                 55                             55
                                                          -------        -------         -------
       Income before income taxes.............                 99             28             127
       Income tax expense ....................                 16             10  (2)         26
                                                          -------        -------         -------
       Net income ............................            $    83        $    18         $   101
                                                          =======        =======         =======
        ..........................................................................................
       Diluted earnings per share with 465 million
         shares outstanding (3)...............            $  0.18                            N/A
                                                          =======
       Diluted earnings per share with 565 million
         shares outstanding (3)...............                N/A                        $  0.18
                                                                                         =======

</TABLE>
 ................................................................................

       (1)The pro forma  effect of lower  employee  benefit  costs,  due to GM's
          retention of certain retiree benefit  obligations,  favorably  impacts
          both cost of sales and selling,  general and administrative  expenses.
          Selling  general  and  administrative  expenses  are also  unfavorably
          impacted by the estimated  incremental costs associated with operating
          Delphi as an independent company.

       (2)Income  taxes  were  determined  in  accordance  with  SFAS  No.  109,
          "Accounting  for  Income  Taxes."  For  purposes  of  this  pro  forma
          presentation  only, the income tax effect of the pro forma adjustments
          assumes a combined federal and state income tax rate of 38%.

       (3)Currently,  Delphi has 565 million shares  outstanding  reflecting 100
          million  shares  issued in the IPO in  February  1999 and 465  million
          shares previously  outstanding.  Under Generally  Accepted  Accounting
          Principles  (GAAP) the shares issued in connection  with the IPO would
          be excluded from the 1998 earnings per share calculation, resulting in
          the use of 465 million shares. For comparative purposes, 1998 earnings
          per share are  calculated as if the IPO took place on January 1, 1998,
          resulting in 565 million shares outstanding.



                                       -8-

        HIGHLIGHTS - Six months ended June 30, 1999 vs. pro forma six
                     months ended June 30, 1998 comparison



<TABLE>
<CAPTION>

                                                                        Six Months Ended
                                                                            June 30,
                                                                       1999          1998 (1)
                                                                       ----          --------
                                                                 (in millions, except per share
                                                                            amounts)

       Net sales:
<S>                                                                 <C>              <C>
         General Motors.......................                      $ 11,839         $ 11,554
         Other customers......................                         3,313            3,110
                                                                    --------         --------
           Total net sales....................                        15,152           14,664
       Less operating expenses:
         Cost of sales, excluding items listed below                  12,844           12,945
         Selling, general and administrative..                           778              735
         Depreciation and amortization........                           444              483
                                                                    --------         --------
       Operating income ......................                         1,086              501
       Less interest expense..................                            60              131
       Other income, net .....................                            67              134
                                                                    --------         --------
       Income before income taxes.............                         1,093              504
       Income tax expense ....................                           415              149
                                                                    --------         --------
       Net income ............................                      $    678         $    355
                                                                    ========         ========
        Gross margin                                                    15.2%            11.7%
        Operating income margin                                          7.2%             3.4%
        Net income margin                                                4.5%             2.4%

 ...................................................................................................

           Diluted earnings per
             share - actual (2)                                  $    1.25                N/A
                                                                 =========

           Diluted earnings per
              share - pro forma (3)                              $    1.20           $   0.63
                                                                 =========           ========


 ...................................................................................................
</TABLE>


       (1)Results of operations for the six months ended June 30, 1998 have been
          adjusted to reflect the impact of the terms of our separation from GM.
          Overall the adjusted  results reflect the net effect of lower employee
          benefit costs and higher other costs  associated with operating Delphi
          as a  stand-alone  company.  See the  reconciliation  of actual to pro
          forma  results for the six months  ended June 30, 1998 for  additional
          information.

       (2)Actual diluted  earnings per share are  calculated  using the weighted
          average shares outstanding during the period, resulting in 544 million
          diluted shares outstanding during the six months ended June 30, 1999.

       (3)Pro forma  diluted  earnings per share are  presented as if the IPO of
          100  million  shares took place on January 1, 1998,  resulting  in 566
          million and 565 million  diluted shares  outstanding for the six month
          periods ended June 30, 1999 and 1998, respectively.




                                       -9-

        HIGHLIGHTS - Six months ended June 30, 1998 - Reconciliation of actual
                     to pro forma results
<TABLE>
<CAPTION>


                                                              Six Months Ended June 30, 1998
                                                           Actual       Adjustments     Pro forma
                                                         (in millions, except per share amounts)

       Net sales:
<S>                                                      <C>                             <C>
         General Motors.......................           $11,554                         $11,554
         Other customers......................             3,110                           3,110
                                                         -------                         -------
           Total net sales....................            14,664                          14,664
       Less operating expenses:
         Cost of sales, excluding items listed below      13,069         $  (124) (1)     12,945
         Selling, general and administrative..               667              68  (1)        735
         Depreciation and amortization........               483                             483
                                                         -------         -------         -------
       Operating income ......................               445              56             501
       Less interest expense..................               131                             131
       Other income, net .....................               134                             134
                                                         -------         -------         -------
       Income before income taxes.............               448              56             504
       Income tax expense ....................               129              20  (2)        149
                                                         -------         -------         -------
       Net income ............................           $   319         $    36         $   355
                                                         =======         =======         =======
        .............................................................................................
       Diluted earnings per share with 465 million
         shares outstanding (3)...............           $  0.69                             N/A
                                                         =======
       Diluted earnings per share with 565 million
         shares outstanding (3)...............               N/A                         $  0.63
                                                                                         =======

 .....................................................................................................
</TABLE>


       (1)The pro forma  effect of lower  employee  benefit  costs,  due to GM's
          retention of certain retiree benefit  obligations,  favorably  impacts
          both cost of sales and selling,  general and administrative  expenses.
          Selling  general  and  administrative  expenses  are also  unfavorably
          impacted by the estimated  incremental costs associated with operating
          Delphi as an independent company.

       (2)Income  taxes  were  determined  in  accordance  with  SFAS  No.  109,
          "Accounting  for  Income  Taxes."  For  purposes  of  this  pro  forma
          presentation  only, the income tax effect of the pro forma adjustments
          assumes a combined federal and state income tax rate of 38%.

       (3)Currently,  Delphi has 565 million shares  outstanding  reflecting 100
          million  shares  issued in the IPO in  February  1999 and 465  million
          shares  previously  outstanding.  Under  GAAP  the  shares  issued  in
          connection  with the IPO would be excluded  from the 1998 earnings per
          share  calculation,  resulting in the use of 465 million  shares.  For
          comparative purposes, 1998 earnings per share are calculated as if the
          IPO took place on January 1, 1998,  resulting  in 565  million  shares
          outstanding.







<PAGE>


                                      -10-

        HIGHLIGHTS - Liquidity and capital resources (dollars in millions)



BALANCE SHEET DATA:

<TABLE>
<CAPTION>

                                                         June 30, 1999     March 31, 1999     December 31, 1998
                                                            Actual            Actual              Pro forma
                                                            ------            ------              ---------

<S>                                                         <C>               <C>                 <C>
     Cash and marketable securities..................       $ 1,246           $ 1,134             $  2,062

     Debt............................................         1,830             1,886                3,500
                                                            -------           -------             --------

       Net Liquidity.................................       $  (584)          $  (752)            $ (1,438)
                                                            =======           =======             ========

       Pension obligations...........................       $ 1,763           $ 2,208             $  2,180


       Total stockholders' equity....................       $ 3,690           $ 3,351             $  3,171

</TABLE>






RECONCILIATION OF SECOND QUARTER NET LIQUIDITY:
<TABLE>
<CAPTION>


<S>                    <C> <C>                                          <C>        <C>
Net liquidity at March 31, 1999.............................                      $  (752)


  Net income................................................            $ 394
  Depreciation and amortization.............................              207
  Capital expenditures......................................             (258)
  Other, net................................................              408


Operating cash flow less capital expenditures...............                          751

  Non-operating activities..................................                           17

  Pension contribution......................................                         (600)
                                                                                  -------

Net liquidity at June 30, 1999..............................                      $  (584)
                                                                                  =======

</TABLE>