BorgWarner Confirms First Business Award for Innovative One-Way Clutch Module

    CHICAGO, Sept. 4 BorgWarner has signed a
letter of intent with a major North American vehicle manufacturer to supply
its new Pawl-type one-way clutch module, for use in upcoming front-wheel-drive
and all-wheel-drive automatic transmission equipped vehicles.
    "With the addition of our new Pawl clutch, BorgWarner solidifies its
product leadership position in offering the industry's widest selection of
one-way clutch technologies, with solutions that suit every application," said
Bob Welding, president, BorgWarner Transmission Systems.  The multi-million
dollar contract for this initial application is scheduled to begin in the
third quarter of 2002.  Manufacturing will take place at BorgWarner
Transmission Systems in Frankfort, Illinois.
    The Pawl clutch is a positively engaging ratchet device -- a significant
departure from traditional sprag and roller clutches, which operate on the
principal of friction.  It features near-net-shape powdered metal components,
resulting in a product that is robust, space efficient, and cost effective.
And, unlike competing ratchet designs, it may be tuned to engage or disengage
centrifugally, as dictated by specific application needs.
    BorgWarner Transmission Systems supplies "shift quality" components and
systems including one-way clutches and clutch-packs; and friction plates and
bands to virtually every automatic transmission maker in the world.  Chicago-
based BorgWarner is a product leader in highly engineered components and
systems for vehicle powertrain applications worldwide.  The company operates
manufacturing and technical facilities in 46 locations in 13 countries.
Customers include Ford, DaimlerChrysler, General Motors, Toyota, Caterpillar,
Navistar International, PSA and VW Group.  The Internet address for BorgWarner
is http://www.bwauto.com .

    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, 2000.

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