BorgWarner DualTronic(TM) Transmission Technology Named Automotive News PACE Award Finalist

TROY, Mich., Oct. 22, 2004 -- BorgWarner DualTronic(TM), the company's wet-clutch and control-system technology for a new-concept automated transmission, has earned BorgWarner a spot on the list of 23 finalists for the 2005 Automotive News PACE Awards. DualTronic enables a manual transmission to perform like an automatic transmission, yet deliver significantly improved vehicle fuel economy. The technology debuted to rave reviews on the VW Golf R32 DSG and the Audi TT 3.2 early last year, and is being launched across the entire VW Group vehicle family -- including VW, Audi, Skoda and Seat.

"As a global powertrain product leader, BorgWarner is committed to providing our customers with industry-leading innovation in fuel economy, reduced emissions and enhanced vehicle performance and stability," said Tim Manganello, BorgWarner Chairman and CEO. "DualTronic is a great example of this. We're proud to be recognized as a PACE finalist for this exciting and high-potential new technology."

Co-sponsored with Capgemini and the Transportation Research Center Inc., the Automotive News PACE Awards celebrate innovation by original equipment suppliers in products and processes. Winners are selected by an independent panel of judges and will be announced April 11, 2005 during the SAE Congress in Detroit. PACE stands for Premier Automotive Suppliers' Contribution to Excellence.

DualTronic eliminates the "torque-interrupt" feeling that occurs when a manual transmission shifts gears. It offers emissions and fuel economy improvements of up to 15 percent, depending on the application. BorgWarner expects the demand for this technology to grow to 20 percent of the European passenger car market by 2015, and expects the technology to become a viable alternative for China and other recently developing automotive markets around the world.

Development of the system for VW was the result of collaboration between engineers throughout BorgWarner's network of technology centers, and based at the BorgWarner European Advanced Transmission Development Center in Ketsch, Germany. BorgWarner was one of only two U.S. companies honored by the VW Group with its 2003 Excellence in Development Award, for DualTronic.

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 248.373.5550.

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, 2003.