BorgWarner Increases Quarterly Dividend 14%; Future Prospects, Strong Cash Flows Allow for Continued Growth

AUBURN HILLS, Mich., Nov. 16, 2005 -- 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 14% increase in the quarterly cash dividend to $0.16 per share on all of the company's issued and outstanding common stock. The dividend is payable on February 15, 2006 to shareholders of record on February 1, 2006.

"Our strong cash flows and confidence in our future growth enable us to provide additional shareholder value," said Timothy M. Manganello, chairman and chief executive officer. "Even with this increase, we expect to maintain our strong investment grade capital structure for future internal and external growth opportunities. This is the fourth year of increases. 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."

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, Honda, Renault/Nissan, 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.