BorgWarner Announces First Transfer-Case Application of Morse TEC Gemini(TM) Chain Technology

CHICAGO, Oct. 15, 2003 -- BorgWarner Inc. announced today a commitment for the first use of its patented Morse TEC Gemini(TM) chain system in a four-wheel drive transfer-case application. The transfer cases, made by New Venture Gear, will supply the 2004 Dodge Durango.

"This revolutionary technology from BorgWarner will provide DaimlerChrysler with world-class noise performance levels in its 4x4 vehicle," said Roger Wood, President and General Manager, BorgWarner Morse TEC. "While the Gemini(TM) chain system is already widely used in front-wheel drive transmissions, we are excited about this first transfer-case application, and the way it improves the noise characteristics of this vehicle without sacrificing the torque-carrying capacity required in trucks and SUVs."

In the Durango application, the Gemini(TM) chain-equipped transfer case provides a 16-decibel chain mesh frequency reduction over a conventional chain drive system, using mechanical noise-cancellation technology. Production has begun at BorgWarner Morse TEC's transmission components operation in Ithaca, New York and its nearby Cortland, New York powder metal operation.

BorgWarner Morse TEC is a global leader in the design and manufacture of automotive chain systems and components for engine timing, automatic transmission and four-wheel drive applications. 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.

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.