Auburn Hills, Michigan, July 27, 2006 – BorgWarner Inc., with approximately 400 employees in India and operations in Chennai, Sirsi, Pune and Kakkalur, showed strong growth in second-quarter sales and income over last year, driven by the demand for fuel-efficient engine and drivetrain technology around the world.Second quarter sales were $1.2 billion, up 5% versus second quarter 2005.Sales from outside the U.S. grew 12% over second quarter 2005.

“We operate in a tough industry environment but continue to deliver solid results,” said Tim Manganello, BorgWarner Chairman and CEO.“BorgWarner’s leadership in powertrain technology that improves fuel economy, reduces emission and improves performance sets us apart from other suppliers.Our sales were up 5% in the second quarter of 2006, while North American vehicle production was flat and worldwide vehicle production was up approximately 3%. Because of our presence in growing markets, such as Korea, India and China, as well as our relationships with emerging auto industry leaders, we expect to continue to outpace industry growth.”

Auburn Hills, Michigan-based BorgWarner Inc. (NYSE: BWA) is a product leader in highly engineered components and systems for vehicle powertrain applications worldwide.The FORTUNE 500 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 www.borgwarner.com.

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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 Risk Factors identified in the Form 10-K for the fiscal year ended December 31, 2005. The Company does not undertake any obligation to update any forward-looking statement.