Auburn Hills, Michigan, March 16, 2006 -- In response to increasing demand for transmission technology in Asia, NSK-Warner has opened a facility in Shanghai for the manufacture of friction products, one-way clutches and clutch modules to support Chinese and other automakers there.The plant, called NSK-Warner Shanghai, is a 100% subsidiary of NSK-Warner, a 50/50 joint venture between BorgWarner and NSK that produces transmission products in Japan.

The initial customer for the new facility is Shanghai GM, both through direct supply as well as indirect supply through Jiao Yun, a Chinese clutch-module supplier to Shanghai GM.Additional customers are expected to include Geely, Aisin AW and Honda.

“We are pleased to mark the opening of this facility, which will serve U.S., European, Korean and Japanese transplants in China, as well as Chinese automakers, with friction products and one-way clutches,” said Bernd Matthes, President and General Manager, BorgWarner Transmission Systems.“We also expect to expand this product line to include torque converter lock-up clutches and separator plates, as the Chinese automatic transmission market continues to grow.”A March 16 opening ceremony was attended by officials of NSK, BorgWarner Inc., BorgWarner Transmission Systems, and NSK-Warner.

BorgWarner Transmission Systems is a supplier to virtually every automatic transmission manufacturer in the world.It produces “shift quality” components and systems including one-way clutches, transmission bands, friction plates and clutch-pack assemblies, and controls including transmission solenoids, control modules and integrated mechatronic control systems.

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, VW/Audi, DaimlerChrysler, General Motors, Toyota, Renault/Nissan, Hyundai/Kia, Honda, BMW, Caterpillar, Navistar International, and Peugeot. The Internet address for BorgWarner is: http://www.borgwarner.com.

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