BorgWarner Reiterates 2005 Guidance; Expects EPS in $4.30 to $4.55 Range With Beru

AUBURN HILLS, Mich., March 8 -- BorgWarner Inc. today reiterated its guidance for 2005. Based on current industry conditions, the company expects 2005 earnings per share in a range of $4.30 to $4.55, which includes assumptions about the company's Beru acquisition in a range of $0.15 to $0.30 per share, and expectations of $4.15 to $4.25 per share on the company's base business as a comparison to 2004 expectations.

The company expects sales growth in the 8% to 10% range on its base business, with Beru growth additive to the base. Global demand for the company's engine and drivetrain products that improve fuel economy, reduce emissions and enhance vehicle stability are expected to drive this above industry-average growth.

BorgWarner owns 69% of Beru, a leading supplier of ignition and sensor technology. Beru AG results will be consolidated within the BorgWarner Engine Group beginning in the first quarter of 2005.

Auburn Hills, Michigan-based BorgWarner Inc. is a $4 billion product leader in highly engineered components and systems for vehicle powertrain applications worldwide. The company operates manufacturing and technical facilities in 62 locations in 17 countries. Customers include Ford, DaimlerChrysler, General Motors, Toyota, Honda, Hyundai/Kia, Caterpillar, Navistar International, Renault/Nissan, Peugeot, VW/Audi and BMW. The Internet address for BorgWarner is: http://www.borgwarner.com/ . Investor conferences are webcast at: http://www.borgwarner.com/investor_webcasts.html . The company is speaking today at the Smith Barney CitiGroup Industrial Conference in New York City.

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. In addition, with respect to earnings guidance resulting from the acquisition of a majority stake in Beru AG, we have assumed, among other things, the allocation of 25% to 50% of the excess purchase price to amortizable assets. Further, the earnings guidance assumes the accuracy of Beru management's outlook for the twelve months ending December 31, 2005. If any of these assumptions are incorrect, actual results could differ substantially from stated expectations. The Company does not undertake any obligation to update any forward-looking statement.