Borg-Warner Automotive Turbo Systems Expands European Operations to Meet Increased Demand / Expects to Double Business

To capitalize on increased demand for turbochargers and unite its acquired turbocharger businesses, Borg-Warner Automotive (NYSE: BWA) is investing $65 million (US) to expand its operations in Germany. Ceremonies this weekend marked the opening of one of the new facilities. The company expects to more than double the size of its $200 million (US) European turbocharger business in the next four years, leading the growth of that business worldwide. The expanded facility combines Borg-Warner Automotive's 3K-Warner European turbocharger business with the European turbocharger business acquired from Kuhlman Corporation's Schwitzer Group. "The consolidation of our turbocharger businesses has created an important new growth platform for BWA," said Ron Ruzic, group president and general manager, BWA Morse TEC and Turbo Systems. "The newly expanded operation will be pivotal in our ability to support our current and prospective customers in this key product area." "The explosive growth of direct-injected engines, fueled by concerns for air quality and fuel economy, has created tremendous demand for our engine products including turbochargers, air management components and chain-driven engine timing systems," said John F. Fiedler, chairman and CEO of Borg-Warner Automotive. "We expect that half of our revenue in 2000 will be engine- related. As a global technology leader in these product areas, we are in an optimum position to make the most of opportunities presented by the growing European market," he said. Local officials, customers, employees and company officers gathered in Kircheimbolanden for the grand opening of the expanded facility. The new building accommodates about 150 employees who will work in management, sales, applications, design, purchasing, accounting and finance, information technology and quality assurance for the group. The new Kirchheimbolanden facility is the most recent addition to the company's expanding global advanced technology network. In May 1998, BWA Morse TEC opened a European headquarters in Arcore, Italy, at which engine timing systems and powertrain drive chains are produced. Last month the company opened the Transmission Advanced Product Development Center for Europe near Heidelberg, Germany, which will house advanced product development activity for clutch systems and control modules for automatic and automated manual transmissions for the European market. "We are committed to building on our strong history of product leadership to create a strong future for BWA and its employees, shareholders and customers worldwide," said Fiedler. "Our impressive new turbocharger facility is another tangible example of this commitment." Chicago-based Borg-Warner Automotive, Inc. is a product leader in highly engineered components and systems for vehicle powertrain applications worldwide. The company operates 54 manufacturing and technical facilities in 13 countries serving worldwide vehicle manufacturers. Customers include Ford, DaimlerChrysler, General Motors, Toyota, Caterpillar, Navistar, PSA and VW Group. Website at . 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, which could cause actual results to differ materially from those projected or implied in 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, 1998. ots Original Text Service: Borg-Warner Automotive, Inc. Internet: Contact: Mary Brevard, 312-322-8683 or Beth Feikens, 248-458-2915 both of Borg-Warner Automotive Company News On-Call: or fax, 800-758-5804, ext. 120941 Web site:

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