BorgWarner Receives Second Consecutive Honda Quality Performance Award

CHICAGO, March 28 -- For the second consecutive year, BorgWarner TorqTransfer Systems in Seneca, South Carolina has been honored by Honda for outstanding quality performance over the past 12 months. The facility, which supplies BorgWarner InterActive Torque Management (ITM)(TM) systems to Honda of America, was recognized for its ranking at the top of Honda's quality index and for having superior delivery performance.

"As product leaders, BorgWarner employees always strive to exceed customer expectations for quality, delivery and productivity," said Pete Kohler, Vice President, Operations at the Seneca facility. "We were most proud to be among the 65 suppliers honored by Honda for exceptional performance in these very categories." BorgWarner's ITM(TM) system, which offers consumers better handling and fuel economy, improved stability, and more flexibility than passive, mechanical four-wheel drive systems, debuted in late 2000 on the award-winning Acura MDX. As a result of the success of that launch, Honda chose BorgWarner to supply the system to the popular Pilot, an all-new Honda SUV that debuted last summer.

The ITM(TM) system's patented technology electronically senses when a vehicle's front wheels slip and instantaneously transfers power to the rear wheels. It then controls the rear wheels to offer side-to-side or single wheel torque management. BorgWarner engineers based the new system on their electronic innovations in rear-wheel drive systems for larger sport-utility vehicles first introduced in the mid-1990s. Anticipating that consumers will appreciate the same safety and handling features in their front-wheel vehicles, BorgWarner is adapting the electronic technology for minivans, station wagons, cars and crossover vehicles (sport-utility vehicles on car platforms).

"Quality is at the very heart of product leadership," said Tim Manganello, BorgWarner President and Chief Executive Officer. "It takes diligence and commitment to achieve and sustain excellence in this vital area of our business. I'm pleased to congratulate the employees of Seneca for earning this prestigious recognition from our valued customer not just once, but two years in a row."

BorgWarner TorqTransfer Systems is the leading independent global designer and producer of torque distribution and management systems, including transfer cases and InterActive Torque Management (ITM)(TM) devices, for four-wheel drive vehicles for the sport-utility, light truck and crossover vehicle markets. These systems enhance driver security, driveability and handling. 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 43 locations in 14 countries. Customers include Ford, DaimlerChrysler, General Motors, Toyota, Honda, Hyundai/Kia, Caterpillar, Navistar International, PSA and VW. The Internet address for BorgWarner is: http://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, 2002.

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