Immediate Release
   Contact: Mary Brevard, 248-373-2406
   A&B FD (PR for BorgWarner):

   Ivo Lingnau, +49 (0)69 92037 133

   BORGWARNER BUYS MAJORITY STAKE IN BERU AG
   FOR EURO 367 MILLION;
   DEAL EXPANDS BORGWARNER'S ENGINE TECHNOLOGY

   IN RAPIDLY GROWING DIESEL MARKET AND
   ELECTRONICS

   Auburn Hills, Michigan, January 4, 2005
   BorgWarner Inc. (NYSE: BWA) announced today
   that, through one of its wholly-owned German
   subsidiaries, it has completed the purchase
   of approximately 62% of the outstanding
   shares of German-based Beru AG from its
   major shareholders, The Carlyle Group and a
   group of family shareholders. The purchase
   was a cash transaction at a price of E59 per
   share or E367 million (approximately US $490
   million at current exchange rate of 1.335).
   Of the E367 million in financing, E240
   million was borrowed locally and the
   remainder was funded by available cash
   balances.

   "We are excited to team up with Beru, a
   technology leader much like BorgWarner,"
   said Timothy M. Manganello, Chairman and CEO
   of BorgWarner. " Having a majority ownership
   in Beru gives us additional access to the
   fast-growing diesel market and enhances our
   sensor and engine electronics expertise. In
   addition,Beru's technology and product
   expertise complements and strengthens our
   market presence with global automakers. Beru
   produces excellent products, has an
   expanding business in one of the fastest
   growing sectors of the automotive market,
   and has a strong and well-respected senior
   management team. We intend to maintain Beru
   as a stand-alone business of BorgWarner
   within our Engine Group and do not
   anticipate employment changes as a result of
   this transaction."

   The transaction is expected to be accretive
   to earnings beginning in 2005. Beru results
   will be consolidated within the BorgWarner
   Engine Group beginning in the first quarter
   of 2005.

   Headquartered in Ludwigsburg, Germany, Beru
   AG is a leading global automotive supplier
   and manufacturer of diesel cold starting
   technology (glow plugs and instant starting
   systems); gasoline ignition technology
   (spark plugs and ignition coils); and
   electronic and sensor technology (tire
   pressure sensors, diesel cabin heaters and
   selected sensors.) Beru's major customers
   include, among others, BMW, DCX, GM/Fiat,
   VW/ Audi, Ford, Porsche, PSA, Renault,
   Isuzu, Siemens VDO, Valeo, Deutz, and MAN.
   Beru employs approximately 2,700 employees.
   On a trailing twelve-month basis ending
   September 30, 2004, Beru's net income was
   E36.8 million excluding exceptional items on
   sales of E379.9 million.


   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.

   Additional Information
   BorgWarner Germany GmbH, a wholly-owned
   subsidiary of BorgWarner Inc. (the
   "Company"), has commenced, in accordance
   with German law, a public tender offer (the
   "Tender Offer") for all of Beru AG's
   remaining outstanding stock. This Tender
   Offer is not being made directly or
   indirectly in or into the United States, or
   by use of the mails of, or by any means or
   instrumentality (including, without
   limitation, the mail, facsimile
   transmission, telex or telephone) of
   interstate or foreign commerce or any
   facilities of any national securities
   exchange of the United States.  The Tender
   Offer will not, and should not, be accepted
   by any such use, means, instrumentality or
   facility involving or from within the United
   States, and United States persons will not
   have the Tender Offer available to them,
   directly or indirectly, within the United
   States. Accordingly, information regarding
   the Tender Offer is not meant for
   publication or distribution in or into the
   United States nor does it represent an
   extension of a tender offer into the United
   States. This communication is for
   information purposes only. It shall not
   constitute an offer to purchase, sell or
   exchange or the solicitation of an offer to
   purchase, sell or exchange any securities of
   Beru. The distribution of this news release
   may, in some countries, be restricted by law
   or regulation. Accordingly, persons who come
   into possession of this document should
   inform themselves of and observe these
   restrictions.

   Forward-Looking Statements 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,
   2003. The Company does not undertake any
   obligation to update any forward-looking
   statement.
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