BorgWarner Turbo Systems Seeks to Extend License Agreement for Variable Geometry Turbocharger

CHICAGO, June 4 -- In order to ensure uninterrupted supply to its customer, BorgWarner Turbo Systems is attempting to negotiate an extension of its license agreement with Honeywell related to a variable geometry turbocharger. BorgWarner Turbo Systems formally advised its customers earlier this year that it would not ship the disputed product after June 30, 2003 when the current agreement expires.

An agreement is not expected to change BorgWarner's guidance for 2003 of earnings per share in the $6.20 to $6.35 range. The potential for some type of contingency plan was included when the company provided its guidance.

BorgWarner continues to develop new turbocharger technology and to work with customers to validate these designs. BorgWarner Turbo Systems is a leading designer and manufacturer of turbochargers for the passenger car and commercial vehicle markets.

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, Renault/Nissan, Peugeot and VW/Audi. The Internet address for BorgWarner is: http://www.bwauto.com/ . For further information contact BorgWarner Corporate Communications at 312-322-8500.

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