BorgWarner Awarded Third New European DualTronic(TM) Program

AUBURN HILLS, Mich., Sept. 12 -- BorgWarner has been awarded another new program with a European customer for its fuel- efficient DualTronic(TM) transmission technology. The program, which is expected to start production in late 2007, is for volume vehicles in the mid-, upper and luxury passenger car segments, using V6, V8, and V10 diesel and gasoline engines. BorgWarner announced two other new European DualTronic(TM) programs in August.

BorgWarner DualTronic(TM) is an industry-first wet-clutch and control- system technology for automated transmissions. It enables a conventional manual gearbox to function as a fully automatic transmission while delivering emissions and fuel economy improvements of up to 15 percent over traditional automatics, depending on the application. The technology also eliminates the "torque-interrupt" feeling that occurs when a manual or automated manual transmission shifts gears, enabling smooth, yet sporty, fun-to-drive vehicle performance. BorgWarner expects the demand for this technology to grow to 20 percent of the European passenger car market by 2015.

DualTronic(TM) technology is currently available on a range of VW and Audi vehicles, including the VW Golf R32; the Audi TT; the diesel and turbocharged direct-injected gasoline engine versions of the VW Golf; the VW Touran; the VW Passat; the VW Jetta; the Audi A3 Sportback; the Skoda Octavia; and the Seat Altea, Toledo and Leon.

Auburn Hills, Michigan-based 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 62 locations in 17 countries. Customers include Ford, DaimlerChrysler, General Motors, VW/Audi, Toyota, Hyundai/Kia, Renault/Nissan, Honda, Caterpillar, Navistar International, 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, 2004. The Company does not undertake any obligation to update any forward-looking statement.