BorgWarner Sells Share in AG Kuehnle, Kopp & Kausch

AUBURN HILLS, Mich., March 11 -- BorgWarner Inc. today announced that, as expected, BorgWarner Europe Inc. has sold its holdings in AG Kuehnle, Kopp & Kausch. The turbomachinery company was sold for Euro 42 million to a private equity group, Turbo Group GmbH. BorgWarner Europe acquired the stake in 1997 from Penske Transportation International Corp., a subsidiary of Penske Corporation.

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, VW/Audi, Toyota, Honda, Hyundai/Kia, Caterpillar, Navistar International, Renault/Nissan, Peugeot and BMW. The Internet address for BorgWarner is: http://www.borgwarner.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. 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.