Delphi Medical Systems Collaborates with SRI International to Provide Respiratory Care Technologies

First Products Expected to Reach Market within 12 Months

Troy, Mich., August 24, 2004 - Delphi Medical Systems Corp., a subsidiary of Delphi Corp. (NYSE: DPH), has signed a research and development agreement with SRI International, a non-profit public benefit organization, to develop several new respiratory care technologies.

The research and development agreement with SRI International will promote Delphi Medical Systems' exclusive worldwide rights to manufacture and sell respiratory devices that use the jointly developed technologies to Original Equipment Manufacturers, OEMs, and distributors. Delphi Medical Systems anticipates marketing the respiratory care technologies developed with SRI International within 12 months.

"Developing medical technology with SRI strengthens our portfolio of technologies and products in respiratory care," said Christophe Sevrain, managing director, Delphi Medical Systems. "We will continue to seek intellectual property in the areas of dialysis, infusion, mobility, respiratory care, and vital signs monitoring with other leading-edge institutes and universities to build and to complement our existing product and technology portfolios."

"We are excited about working with the Delphi team on creating new technologies and products for the medical device marketplace. This is an excellent opportunity for SRI to lend its interdisciplinary R&D expertise to products that will have a positive impact on human health," said Dr. John Bashkin, director of business development at SRI.

Capable of providing up-to-date technologies in circuit electronics, sensors, user interface, wireless technologies, and more to address challenges in a global market, Delphi Medical Systems recently announced a licensing agreement for an ambulatory intravenous (IV) pump, its associated disposables and accessories.

About Delphi Medical Systems

Delphi Medical Systems is a world-class provider of technology, products, and product development and manufacturing for Dialysis, Infusion, Respiratory Care, Vital Signs Monitoring and Power Mobility. Its capabilities stem from Delphi's vast technology base, product development expertise and manufacturing excellence.

For more information on Delphi Medical Systems, please visit its website at: http://www.delphimedical.com.

About SRI International

Silicon Valley-based SRI International is one of the world's leading independent research and technology development organizations. Founded as Stanford Research Institute in 1946, SRI has been meeting the strategic needs of clients for almost 60 years. The nonprofit institute performs contract research and development for government agencies, commercial businesses, and nonprofit foundations. In addition, SRI licenses its technologies, forms strategic partnerships and creates spin-off companies.

SRI's experienced Medical Product Development team provides clients with interdisciplinary expertise and comprehensive services. Projects have included respiratory care technologies, portable biosensors, ultrasonic scanners, blood pressure instruments, blood and tissue sampling devices, insulin delivery systems, digital x-ray systems, and magnetic resonance imaging.

For more information on SRI International, visit its website at: http://www.sri.com/

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, volume growth, awarded sales contracts 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 royalties and profit margins over a licensing agreement will depend in part on customer demand which may be affected by, among other things, uncertainty of product development and manufacturing, uncertainty about obtaining and maintaining FDA regulatory clearances and the timing of receiving marketing clearances, uncertainty relating to third party reimbursement, ability to convince health care professionals and third party payers of the medical and economic benefits of the licensed products, changes in general economic conditions,   and changes in our ability to satisfy service, technology, quality and other requirements.   Delphi does not intend or assume any obligation to update any of these forward-looking statements.

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SRI International is a registered trademark of SRI International. All other trademarks are the property of their respective owners.