TROY, MI -- Delphi has reported first quarter 2008 financial results with revenues of $5.3 billion, and a net loss of $589 million.

Delphi reported global revenue of $5.3 billion, down from $5.7 billion in the first quarter of 2007. Non-GM revenue for the quarter was $3.6 billion, up from $3.5 billion in Q1 2007, primarily attributable to the favorable impact of foreign currency exchange rates. Excluding the impact of foreign currency exchange rates, non-GM revenue decreased 4 percent. Non-GM business represented 69 percent of Q1 revenues, compared to year-ago levels of 62 percent, primarily due to decreases in GM North America volume of 18 percent, which includes the impact related to a work stoppage at a Tier 1 supplier to GM, and contractual price reductions.

Cash flow used in operating activities was $290 million, as compared to $414 million used in operating activities for Q1 2007. Cash used in operations was improved in Q1 2008 compared to Q1 2007 due to a net reduction in U.S. employee workforce transition program payments of $146 million.

Net loss of $589 million, or $1.04 per share compared to Q1 2007 net loss of $533 million, or $0.95 per share. Included in the Q1 2008 net loss is $79 million of reorganization expenses for previously capitalized Equity Purchase and Commitment Agreement ("EPCA") fees expensed as a result of the EPCA termination. Additionally, Delphi's financial results were further impacted by increased workforce transition program charges of approximately $42 million.

Delphi also announced the refinancing and extension of the terms of its Debtor-In-Possession (DIP) Credit Facility to Dec. 31. Based on positive DIP lender participation and subject to Court approval, Delphi will increase the requested capacity of its DIP Credit Facility from the previously announced $4.1 billion to $4.35 billion, providing the company with approximately $250 million in additional liquidity.

Additionally, Delphi stated that GM has agreed to advance amounts anticipated to be paid to Delphi upon the effectiveness of the GM settlement and restructuring agreements. These actions provide the company with sufficient liquidity to support the ongoing implementation of Delphi's transformation plan.

With the extension and refinancing of the DIP Credit Facility and availability of advances from GM, Delphi believes it will continue to have adequate access to liquidity throughout 2008. As of March31, 2008, Delphi had liquidity of $1.8 billion, comprised of cash, cash equivalents and available liquidity under the prior DIP credit facility.

Delphi reaffirmed its commitment to funding and freezing at emergence its U.S. Hourly and Salaried Pension Plans. The company said it expects to be able to meet its pension funding strategy through a combination of cash contributions and transfers of certain unfunded pension liabilities to a plan sponsored by GM, without the benefit of the previously issued pension funding waivers. Accordingly, Delphi has not applied to the IRS or PBGC to extend such waivers.

"The relatively favorable funded position of the Delphi plans as of the October 1, 2007 valuation date triggered a technical ERISA contribution limit that determines the required emergence contribution for the current plan year," said John Sheehan, Delphi vice president and chief restructuring officer. "Achieving this limit means we no longer need the waivers to efficiently effect the transfer of certain liabilities to GM," he said. "We appreciate the constructive support of the IRS and PBGC that we have received throughout our Chapter 11 proceedings and look forward to the continued support of these agencies as Delphi seeks to meet its commitment to fund its pension plans at emergence," added Sheehan.

For more information about Delphi, go to: www.delphi.com.