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BorgWarner Morse TEC Expands in Japan

AUBURN HILLS, Mich., March 29 /PRNewswire-FirstCall/ -- BorgWarner Morse TEC has opened a facility in Aoyama, Japan as an extension of its operation in Nabari City, which is about 17 kilometers from the new location. The expansion reflects the growth of Morse TEC's engine timing systems business in Japan and the continuing trend of engine timing systems moving from belts to chains in Japan and Europe.

"In the dynamic Japanese market, we are experiencing exciting opportunities with customers who are seeking optimized solutions for their engines -- including reduced noise and vibration, and improved packaging, durability and fuel efficiency," said Roger Wood, BorgWarner Morse TEC President and General Manager. "The preference for silent chain over belts continues to increase, and BorgWarner is well-positioned globally to answer the demand."

The 89,000-square-foot facility employs 86 and includes two plants and an office building. One of the plants is already fully occupied and produces engine silent chain and engine timing systems for automotive and motorcycle timing drive applications. An opening celebration earlier this month was attended by BorgWarner executive management, suppliers, and local government officials.

"We are proud to add Morse TEC Japan-Aoyama to the growing list of BorgWarner operations that bring advanced technology and powertrain expertise to customers all over the world," said Tim Manganello, BorgWarner Chairman and CEO. "Congratulations to Morse TEC for this most recent evidence of product leadership in the important Japanese vehicle market."

BorgWarner Morse TEC is a global leader in the design and manufacturing of automotive chain systems and components for engine timing, automatic transmission and four-wheel drive applications.

Auburn Hills, Michigan-based 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 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, 2004. The Company does not undertake any obligation to update any forward-looking statement.