BorgWarner Announces a 12% Increase to Quarterly Dividend; Strong Cash Flows Allow for Continued Growth

CHICAGO, Nov. 10, 2004 -- BorgWarner Inc. , a leading provider of highly engineered engine and drivetrain components and systems to vehicle makers worldwide, announced today that the company's board of directors has approved a quarterly cash dividend of $0.14 per share on all of the company's issued and outstanding common stock. This is a 12% increase from the previous level of $0.125 per share paid each quarter in 2004. The dividend is payable on February 15, 2005 to shareholders of record on February 1, 2005.

"This dividend increase is our third in three years," said Timothy M. Manganello, chairman and chief executive officer. "Our strong cash flows and confidence in our future growth enable us to provide additional shareholder value. Even with this increase we expect to maintain our strong investment grade capital structure for future internal and external growth opportunities including the acquisition of the 63% of the outstanding shares of Beru AG which we announced last week. Management and the board of directors will continue to evaluate our dividend policy and we expect to maintain a rate that is a meaningful component of total shareholder return."

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/ .