BorgWarner's New Friction Materials Enhance Clutch Performance

AUBURN HILLS, Mich., Aug. 15 /PRNewswire-FirstCall/ -- In keeping with its history of technology leadership in smooth-shifting automatic transmission clutches, BorgWarner has introduced a new line of friction materials designed to support smooth, precise shifting in the new generation of energy-efficient six-speed transmissions being brought to production by various global OEMs. In addition to allowing the design of more compact and efficient clutches, the materials minimize noise, vibration and harshness (NVH) issues, resulting in a smoother, quieter driving experience.

"Transmission builders have increased the power- and torque-carrying capacity of transmissions, while at the same time reducing overall dimensions and weight and increasing fuel efficiency," said Bernd Matthes, BorgWarner Transmission Systems President and General Manager. "The makers of shifting clutches have been challenged to meet ever-more-demanding conditions and requirements. BorgWarner's patented products and innovative processes offer clutch performance that is unmatched in the industry. They are another example of BorgWarner's product leadership in providing engineering solutions for wet clutches in both traditional step-level transmissions, as well as new technologies like BorgWarner DualTronic(TM) and other alternative transmissions such as CVTs (continuously variable transmissions)."

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. 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, Hyundai/Kia, Renault/Nissan, Honda, Caterpillar, Navistar International, 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.