BorgWarner Is Awarded Significant New Transfer Case Business From North American OEM

CHICAGO, Nov. 29, 2004 -- BorgWarner TorqTransfer Systems has been awarded a major new-business contract to supply its most advanced 4WD system to a North American OEM.

"This is the most advanced Torque-On-Demand(R) transfer case system BorgWarner has produced to date," said Cindy Niekamp, President and General Manager, BorgWarner TorqTransfer Systems. "It complements our customer's evolving vehicle stability and handling systems, and reflects the trend toward smarter, more sophisticated algorithms and controls. Increasingly, automakers are leveraging 4x4 systems to augment vehicle handling and stability programs." Niekamp said the contract represents not only a new product introduction, but a new vehicle program with this customer.

BorgWarner Torque-on-Demand(R) technology provides drivers with full-time, electronically controlled four-wheel drive for all conditions. The system's distinguishing feature is its ability to automatically deliver optimal torque using electronic sensors and microcomputer controls. In the automatic four- wheel-drive mode, when needed, Torque-on-Demand(R) automatically delivers the needed four-wheel-drive power and reduces the power when the need subsides. In addition to better handling and performance, the system provides more refined tuning, less noise, vibration and harshness (NVH), less drag, and improved fuel economy.

BorgWarner TorqTransfer Systems is a leading global designer and producer of transfer cases and torque management systems for four-wheel and all-wheel drive vehicles for the passenger car, crossover vehicle, sport-utility and light truck markets. These systems enhance vehicle stability, security and drivability. 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/ .

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, many of which are difficult to predict and generally beyond the control of the Company, that could cause actual results to differ materially from those expressed, projected or implied in or by 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. The Company does not undertake any obligation to update any forward-looking statement.