BorgWarner Turbo Systems Forms SeohanWarner Turbo Systems Jusik Hoesa In Korea

CHICAGO, Feb. 9, 2004 -- BorgWarner Turbo Systems has announced the formation of a joint venture with Korea Flange Company Ltd. (KOFCO) for the manufacture and sale of turbochargers in Korea. The name of the joint venture is SeohanWarner Turbo Systems Jusik Hoesa. The legal term Jusik Hoesa is similar to a GmbH in Germany or a Ltd. in the United Kingdom. Ownership of the joint venture is 71% BorgWarner Turbo Systems and 29% KOFCO. It will be based at BorgWarner's Engine Group campus in Pyongtaek, Korea.

"This joint venture is a pivotal development in BorgWarner Turbo Systems' growth plans for Korea," said F. Lee Wilson, BorgWarner Turbo Systems President and General Manager. "Beginning next year, diesel engines will be allowed on passenger cars in Korea and thus we anticipate a significant increase in the demand for turbochargers. In addition, Korean automakers are making significant inroads in export markets such as Europe. Our new venture with KOFCO will position us well to maximize these growth opportunities."

KOFCO is a Tier One Korean automotive supplier, which specializes in drivetrain components including front and rear axle modules, CV joints, and forging parts. The company was founded in 1974 and has seven locations, including one operation in the U.S. and one in China. Sales in 2002 were about $400 million.

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.

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.