BORGWARNER LAUNCHES CHAIN TIMING SYSTEM FOR WORLD ENGINE; WILL PROVIDE ELECTRONIC THROTTLE CONTROL BEGINNING NEXT YEAR

CHICAGO, Sept. 23 /PRNewswire-FirstCall/ -- BorgWarner has begun production of the engine chain timing system and will also supply the electronic throttle control for the "world engine", a family of four-cylinder gasoline engines produced by the Global Engine Alliance LLC. The Alliance, a joint venture between Hyundai Motor Company, DaimlerChrysler AG and Mitsubishi Motors Corporation, was announced in May 2002. Total annual world engine production is estimated at more than 1.6 million units, which would make Alliance's global output the highest-volume engine family in the world.

"BorgWarner's globally integrated organization allows us to provide our customers with local service in each of the world engine production regions, utilizing our expertise from all over the world," said BorgWarner Chairman and CEO Tim Manganello. "This capability is a consideration in many sourcing decisions today and, when combined with our value-added, differentiating technology, gives BorgWarner an important competitive advantage."

The world engine will be manufactured in production facilities located in the United States, South Korea and Japan. Shared development costs between five operations in these three markets mean that the three OEMs anticipate significant economies of scale.

BorgWarner will supply the chain timing system in all three markets. Drivers of vehicles equipped with these systems will benefit from reduced engine noise, increased performance and durability. The system also aids emissions reduction. Production is currently being launched for the Korean market. In North America and Japan, production is expected to begin in mid- 2005.

In addition, BorgWarner will supply DaimlerChrysler with the electronic throttle control for the North American volumes of the engine, which are produced in Dundee, Michigan. This system provides unlimited calibration possibilities for improved drivability and fuel economy. Production is expected to begin in late 2005.

BorgWarner Inc. (NYSE: BWA) is a product leader in highly engineered components and systems for vehicle powertrain applications worldwide. The company operates manufacturing and technical facilities in 43 locations in 14 countries. Customers include Ford, DaimlerChrysler, General Motors, Toyota, Honda, Hyundai/Kia, Caterpillar, Navistar International, Renault/Nissan, Peugeot and VW/Audi. The Internet address for BorgWarner is: www.bwauto.com. For further information contact BorgWarner Corporate Communications at 312-322-8500.

Statements contained in this news release may contain forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act that are based on management's current expectations, estimates and projections. Words such as "expects," "anticipates," "intends," "plans," "believes," "estimates," variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those projected or implied in the forward- looking statements. Such risks and uncertainties include: fluctuations in domestic or foreign automotive production, the continued use of outside suppliers by original equipment manufacturers, fluctuations in demand for vehicles containing the Company's products, general economic conditions, as well as other risks detailed in the Company's filings with the Securities and Exchange Commission, including the Cautionary Statements filed as Exhibit 99.1 to the Form 10-K for the fiscal year ended December 31, 2003.