BWA BorgWarner Inc

BorgWarner Expects $1.3 Billion in New Business For 2004-2006; Fuel-Efficient Engine and Drivetrain Technology Drives Growth CHICAGO, Nov. 4 /PRNewswire-FirstCall/ -- BorgWarner Inc. , a leading provider of highly engineered engine and drivetrain components and systems to vehicle makers worldwide, today announced $1.3 billion of expected net new powertrain business for 2004 through 2006. Some 75% of this new business is with non "Big-Three" automakers including Volkswagen/Audi, Honda, Renault/Nissan and Hyundai/Kia. About 60% of the new business is anticipated to be engine-related products such as turbochargers, engine timing systems and variable cam timing modules. The other 40% is expected in transmission modules and four-wheel/all-wheel drive systems including the company's first to market technology for DualTronic(TM) transmission systems and InterActive Torque Management(TM) systems. "Our fuel-efficient technology that serves the needs of our global customer base is clearly a strong growth catalyst for this new business," said Timothy M. Manganello, chairman and chief executive officer, who is presenting the new business outlook at the 27th Annual Automotive Symposium sponsored by Gabelli & Company. Manganello pointed out that the anticipated growth in the company's new business, as well as volume increases in existing business with its global customers, position the company to achieve its long-term sales growth target of 8% to 11%. He also noted that in 2006, about 40% of the company's sales are anticipated from the traditional "Big Three" automakers while the remaining 60% will come from other global car and truck makers. "Because of our global diversity, we believe that our strong internal growth can outpace that of our industry, even if auto production is flat," said Manganello. "It is significant that 49% of our expected new business is in Europe, driven by the need for more fuel-efficient engine and transmission technology. In North America, our new business is tied to Asian automakers and General Motors. The anticipated new business over the coming three-year period reflects continued strength in our engine products, expansion of our four-wheel drive business and growing excitement over our innovative DualTronic transmission technology," he said. Significant customer programs during the 2004 through 2006 period are anticipated to include: Engine Group * Next generation passenger car turbochargers in Europe for VW and Audi, Renault, PSA, Ford and Fiat * Turbochargers for light truck programs in North America and commercial vehicle programs in Europe and North America * Chain-driven timing systems for Honda, Nissan and Hyundai in North America and Asia, and world engine programs for Ford and DaimlerChrysler * Variable cam timing for OEMs in North America Drivetrain Group * DualTronic transmission technology for three European OEMs including VW and Audi * Electronic all-wheel drive for Hyundai and Honda for use in North America * Four-wheel drive systems for General Motors and a major European automaker New business programs are expected to yield approximately $350 million in sales in 2004, with the remainder in the next two years, with the value depending upon production volumes, launch timing and currency. BorgWarner Inc. (NYSE:BWA) is a product leader in highly engineered components and systems for vehicle powertrain applications worldwide. The company operates manufacturing and technical facilities in 43 locations in 14 countries. Customers include Ford, DaimlerChrysler, General Motors, Toyota, Honda, Hyundai/Kia, Caterpillar, Navistar International, Renault/Nissan, Peugeot and VW/Audi. The Internet address for BorgWarner is: http://www.bwauto.com/ . For further information contact BorgWarner Corporate Communications at 312-322-8500. Investor conference calls are webcast at: Thomson / PR Newswire. 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, which could cause actual results to differ materially from those projected or implied in 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, 2002. DATASOURCE: BorgWarner Inc. CONTACT: Mary Brevard of BorgWarner, +1-312-322-8683 Web site: http://www.bwauto.com/

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