BorgWarner Expects Continued Growth in 2004 Producing EPS in $7.10 to $7.30 Range

CHICAGO, Jan. 8, 2004 -- BorgWarner Inc. today provided guidance for 2004 earnings per share in a range of $7.10 to $7.30.

"We expect 2004 to be a continuation of the strong growth that we have experienced over the past few years," said Timothy M. Manganello, Chairman and CEO." Our robust pipeline of new business and proven ability to participate in the faster growing parts of the auto market are expected to once again produce higher sales and earnings." He added, "The overall trends driving our growth remain the same. They revolve around fuel efficiency, emissions reduction, performance, and vehicle handling or stability. We believe that we can achieve 8% to 10% top line and 12% to 15% bottom line growth in 2004 given current industry assumptions."

Mr. Manganello said that the company's guidance is based on assumptions of North American light vehicle production for the year of approximately 16.3 million cars and trucks, flat production in Japan and Korea, and a modest increase in Europe. "Strong demand is expected in Europe for our more fuel-efficient engine and transmission systems. The high cost of fuel and stricter emissions regulations continue to create a huge market opportunity for our turbochargers, engine timing systems and new fuel-efficient DualTronic(TM) transmission modules, which are in their first full year of production in 2004. In North America, we will benefit from the continued popularity of sport-utility and crossover vehicles, and our broad customer base which includes all the major auto makers."

The company will also reiterate its expected long-term growth goals of 8% to 11% sales growth, and 12% to 16% earnings growth in conjunction with the North American International Auto Show in Detroit today. In addition, the company will outline its progress in improving margins and boosting its return on investment, and the company's uses of its strong cash flow including dividend payments, strategic acquisitions, debt reduction and share repurchase. Further details can be found by accessing the presentation webcast at http://www.bwauto.com/investor.html.

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.