BorgWarner Morse TEC Introduces Hy-Vo ZX(R) Chain on GM Vehicles

CHICAGO, Jan. 21, 2004 -- General Motors Corporation has awarded BorgWarner Morse TEC a contract for the production of its new Hy-Vo ZX(R) transmission chain technology, for GM's 4T40/45E transmission platform which includes the Cavalier, Sunfire, Malibu, Grand AM, Oldsmobile Alero and Saturn LS vehicles.

"The ZX chain allows GM to design lighter, more compact front-wheel drive transmissions and engines with higher torque output," said Roger Wood, BorgWarner Morse TEC President and General Manager. "In addition, it enables the communization of components between different transmissions -- and provides a cost savings." The ZX chain provides significant strength improvement, and can either improve load capacity in higher-powered applications or reduce the packaging space requirement in current applications. This chain technology is also being developed for and applied to some transfer case applications.

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.