The Auto Channel
The Largest Independent Automotive Research Resource
The Largest Independent Automotive Research Resource
Official Website of the New Car Buyer

Delphi Exercises Option to Gain Equity Stake in Duraswitch

20 June 2000

Company Broadens Access to Leading Edge Switch Technology
          
    WARREN, Ohio - Delphi Automotive Systems exercised a call option to acquire
in excess of 1.65 million shares of Duraswitch Industries Inc. common stock, 
representing approximately 18 percent of DuraSwitch's outstanding shares, Delphi 
announced today.

    "An equity stake in DuraSwitch adds a strategic switch component to
Delphi's technology portfolio, and will enable Delphi to pursue growth beyond
the automotive market," said David Heilman, vice president, Delphi, president,
Delphi Packard Electric Systems.  "This also allows Delphi to participate in
expanded development of DuraSwitch's technology."

    The option to purchase the shares by June 30, 2000, was part of an
agreement Delphi and DuraSwitch announced on April 25, 2000.  The agreement
provided Delphi exclusive rights to utilize and manufacture DuraSwitch's
revolutionary magnetically coupled switch technology for the automotive
industry.

    The equity stake also provides for Delphi representation on DuraSwitch's
board of directors.

    Background on April 25 announcement:  DuraSwitch's leading edge technology
utilizes a patented, revolutionary magnetic-based design that provides
previously unheard of reliability and durability, with a consistent tactile
feedback, or "click."  This specialized technology enables the switches to be
used in applications where either membrane or electro-mechanical switches are
currently used.  It easily incorporates into flat panel, electronically
integrated switch packaging, currently required in advanced
electrical/electronic architectures and in demand by vehicle manufacturers.

    Utilizing DuraSwitch technology will enable Delphi to grow its current
switch business.  The intent is to begin moving away from some of the electro-
mechanical switches typically used in vehicles and replace them with
DuraSwitch technology, which has fewer parts.  By doing so, switch degradation
and failure rates can be minimized, leading directly to more satisfied vehicle
buyers.

    Multi-national Delphi Automotive Systems, with headquarters in Troy,
Mich., USA, Paris, Tokyo and Sao Paulo, Brazil, is a world leader in
transportation and mobile electronics components and systems technology.
Delphi's three business sectors -- Dynamics & Propulsion; Safety, Thermal &
Electrical Architecture; and Electronics and Mobile Communication -- provide
comprehensive product solutions to complex customer needs.  Delphi has
approximately 213,000 employees and operates 176 wholly owned manufacturing
sites, 41 joint ventures, 53 customer centers and sales offices and 30
technical centers in 38 countries.