BorgWarner Increases Quarterly Dividend

AUBURN HILLS, Mich., Nov. 16, 2006 -- BorgWarner Inc. , a leading provider of highly engineered engine and drivetrain components and systems to vehicle makers worldwide, announced today that the company's board of directors has approved a 6% increase in the quarterly cash dividend to $0.17 per share on all of the company's issued and outstanding common stock. The dividend is payable on February 15, 2007 to shareholders of record on February 1, 2007.

"While this is a difficult time for many in our industry, we believe that our confidence in our future growth sets us apart and enables us to provide additional shareholder value," said Timothy M. Manganello, chairman and chief executive officer. "Even with this increase, we expect to maintain our strong investment grade capital structure for future internal and external growth opportunities. This is the fifth year of increases. Over that period the dividend has increased 127%. Management and the board of directors will continue to evaluate our dividend policy and we expect to maintain a rate that is a meaningful component of total shareholder return."

Auburn Hills, Michigan-based BorgWarner Inc. is a product leader in highly engineered components and systems for vehicle powertrain applications worldwide. The company operates manufacturing and technical facilities in 63 locations in 18 countries. Customers include Ford, VW/Audi, DaimlerChrysler, General Motors, Toyota, Renault/Nissan, Hyundai/Kia, Honda, Caterpillar, Navistar International, Peugeot, and BMW. The Internet address for BorgWarner is: borgwarner.com .