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Borg-Warner Automotive Declares Quarterly Dividend

23 July 1998

Borg-Warner Automotive Declares Quarterly Dividend and Dividend Distribution of Preferred Share Purchase Rights

    CHICAGO, July 22 -- The board of directors of Borg-Warner
Automotive, Inc. has declared a regular quarterly dividend of
$0.15 per share on all of the company's issued and outstanding common stock.
The dividend is payable August 17, 1998, to shareholders of record on
August 3, 1998.
    The board has also declared a dividend distribution of one Preferred Share
Purchase Right on each outstanding share of common stock.
    John F. Fiedler, Borg-Warner Automotive's chairman and chief executive
officer, stated: "We believe that maintaining a rights plan assures that all
of our stockholders receive fair and equal treatment in the event of any
proposed takeover of the company.  The rights are not intended to prevent a
takeover, but should enable all our stockholders to realize the long-term
value of their investment in the company."
    The rights will be exercisable only if a person or group acquires 20% or
more of Borg-Warner Automotive's voting common stock or announces a tender
offer the consummation of which would result in ownership by a person or group
of 20% or more of the voting common stock.
    The dividend distribution will be made on August 17, 1998, payable to
stockholders of record on August 3, 1998.  The rights distribution is not
taxable to stockholders.
    Chicago-based Borg-Warner Automotive, Inc. is a product leader in highly
engineered components and systems primarily for automotive drivetrain
applications.  The company operates manufacturing facilities in 12 countries
serving the North American, European and Asian automotive markets.