BorgWarner Releases Comparable 2001 Quarterly Data

<p>CHICAGO, May 16 -- BorgWarner Inc. today released 2001 quarterly earnings before interest and taxes for its five business segments on a pro forma basis. This information has been adjusted to eliminate the amortization of goodwill which had been allocated to each segment. Beginning in 2002, goodwill will no longer be amortized and this pro forma information is being provided to make the 2001 information comparable with that of 2002. In addition, the company is providing pro forma earnings and earnings per share on a quarterly basis also adjusted to eliminate the amortization of goodwill, net of income tax effects.<p>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 50 locations in 14 countries including joint ventures, with combined worldwide sales of $2.7 billion in 2001. Customers include Ford, DaimlerChrysler, General Motors, Toyota, Honda, Caterpillar, Navistar International, PSA and VW Group. The Internet address for BorgWarner is: <a href="http://www.bwauto.com">http://www.bwauto.com</a>. For further information contact BorgWarner Corporate Communications at 312-322-8500. Investor conference calls are webcast at: <a href="http://www.vcall.com">http://www.vcall.com</a> . <pre> BorgWarner Inc. Earnings Before Interest and Taxes by Operating Group (Unaudited) Three Three Three Three Months Months Months Months Year (millions of dollars) Ended Ended Ended Ended Ended March June September December December 31, 30, 30, 31, 31, 2001 2001 2001 2001 2001 As As As As As Reported Reported Reported Reported Reported

Air/Fluid Systems $3.0 $6.1 $2.1 $1.7 $12.9

Cooling Systems 2.0 2.1 1.9 1.5 7.5

Morse TEC 27.8 30.9 26.9 34.2 119.8

TorqTransfer Systems 4.0 6.2 2.5 11.4 24.1

Transmission Systems 12.0 11.9 12.0 12.6 48.5

Divested Operations (0.2) 0.0 0.0 0.0 (0.2)

Total EBIT by Operating Group $48.6 $57.2 $45.4 $61.4 $212.6

Three Three Three Three Months Months Months Months Year (millions of dollars) Ended Ended Ended Ended Ended March June September December December 31, 30, 30, 31, 31, 2001 2001 2001 2001 2001 Pro Pro Pro Pro Pro Forma Forma Forma Forma Forma Air/Fluid Systems $4.6 $7.7 $3.7 $3.4 $19.4

Cooling Systems 6.5 6.5 6.3 5.9 25.2

Morse TEC 31.1 33.8 29.9 37.3 132.1

TorqTransfer Systems 4.0 6.2 2.5 11.5 24.2

Transmission Systems 13.4 13.3 13.4 14.1 54.2

Divested Operations (0.2) 0.0 0.0 0.0 (0.2)

Total EBIT by Operating Group $59.4 $67.5 $55.8 $72.2 $254.9

Net earnings, as reported $21.1 $24.7 $18.4 $2.2 $66.4

Net earnings, pro forma $27.8 $31.2 $25.0 $8.9 $92.9

Earnings per share, as reported $0.80 $0.93 $0.70 $0.08 $2.51

Earnings per share, pro forma $1.05 $1.18 $0.94 $0.34 $3.51

Effective January 1, 2002, BorgWarner adopted SFAS No. 142, "Goodwill and Other Intangible Assets". Under SFAS No. 142, a company no longer amortizes the goodwill recorded on its books. The pro forma information for 2001 presented above has been adjusted to eliminate amortization from the Earnings Before Interest and Taxes by Operating Group and on a net of tax basis from Net Earnings. </pre>