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

KIRCHEIMBOLANDEN (PROTEXT) - To capitalize on increased demandfor 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 weekendmarked the opening of one of the new facilities. The company expects to more than double the size of its $200million (US) European turbocharger business in the next fouryears, leading the growth of that business worldwide. Theexpanded facility combines Borg-Warner Automotive's 3K-WarnerEuropean turbocharger business with the European turbochargerbusiness acquired from Kuhlman Corporation's Schwitzer Group. "The consolidation of our turbocharger businesses has createdan important new growth platform for BWA," said Ron Ruzic, grouppresident and general manager, BWA Morse TEC and Turbo Systems."The newly expanded operation will be pivotal in our ability tosupport our current and prospective customers in this key productarea." "The explosive growth of direct-injected engines, fueled byconcerns for air quality and fuel economy, has created tremendousdemand for our engine products including turbochargers, airmanagement 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, weare in an optimum position to make the most of opportunitiespresented by the growing European market," he said. Local officials, customers, employees and company officersgathered in Kircheimbolanden for the grand opening of theexpanded facility. The new building accommodates about 150employees who will work in management, sales, applications,design, purchasing, accounting and finance, informationtechnology and quality assurance for the group. The new Kirchheimbolanden facility is the most recent additionto the company's expanding global advanced technology network. InMay 1998, BWA Morse TEC opened a European headquarters in Arcore,Italy, at which engine timing systems and powertrain drive chainsare produced. Last month the company opened the TransmissionAdvanced Product Development Center for Europe near Heidelberg,Germany, which will house advanced product development activityfor clutch systems and control modules for automatic andautomated manual transmissions for the European market. "We are committed to building on our strong history of productleadership to create a strong future for BWA and its employees,shareholders and customers worldwide," said Fiedler. "Ourimpressive new turbocharger facility is another tangible exampleof this commitment." Chicago-based Borg-Warner Automotive, Inc. is a product leaderin highly engineered components and systems for vehiclepowertrain applications worldwide. The company operates 54manufacturing and technical facilities in 13 countries servingworldwide vehicle manufacturers. Customers include Ford,DaimlerChrysler, General Motors, Toyota, Caterpillar, Navistar,PSA and VW Group. Website at http://www.bwauto.com . Statements contained in this news release may contain forward-looking statements as contemplated by the 1995 Private SecuritiesLitigation Reform Act that are based on management's currentexpectations, estimates and projections. Words such as "expects,""anticipates," "intends," "plans," "believes," "estimates,"variations of such words and similar expressions are intended toidentify such forward-looking statements. Forward-lookingstatements are subject to risks and uncertainties, which couldcause actual results to differ materially from those projected orimplied in the forward- looking statements. Such risks anduncertainties include: fluctuations in domestic or foreignautomotive production, the continued use of outside suppliers byoriginal equipment manufacturers, fluctuations in demand forvehicles containing the Company's products, general economicconditions, as well as other risks detailed in the Company'sfilings with the Securities and Exchange Commission, includingthe Cautionary Statements filed as Exhibit 99.1 to the Form 10-Kfor the fiscal year ended December 31, 1998. ots Original TextService: Borg-Warner Automotive, Inc. Internet:http://www.newsaktuell.de Contact: Mary Brevard, 312-322-8683 orBeth Feikens, 248-458-2915 both of Borg-Warner AutomotiveCompany News On-Call: http://www.prnewswire.com/comp/120941.htmlor fax, 800-758-5804, ext. 120941 Web site:http://www.bwauto.com

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