BorgWarner has been awarded two new European programs with two new customers for its fuel-efficient DualTronic(TM) transmission technology. The programs, which startproduction in 2007, are for vehicle types that range from compact and mid-sized to luxury passenger cars and sport-utility vehicles. Combined annual production is expected to be 600,000 units at full production volumes.

“Adding business with new DualTronic(TM) customers is an integral part of
BorgWarner’s growth strategy,” said Tim Manganello, BorgWarner Chairman and
CEO. “Having demonstrated the technology’s popularity with VW/Audi and the
drivers of its vehicles, I’m pleased to announce that two new customers will
be using DualTronic(TM) for new transmission programs. We are delighted to
see the momentum for this technology continuing to build, and to bring its
benefits to two new customers who value fuel economy and an exceptional
driving experience.”

BorgWarner DualTronic(TM) is an industry-first wet-clutch and control-
system technology for automated transmissions. It enables a conventional
manual gearbox to function as a fully automatic transmission while delivering
emissions and fuel economy improvements of up to 15 percent over traditional
automatics, depending on the application. The technology also eliminates the
“torque-interrupt” feeling that occurs when a manual or automated manual
transmission shifts gears, enabling a smooth, yet sporty, fun-to-drive vehicle
performance. BorgWarner expects the demand for this technology to grow to 20
percent of the European passenger car market by 2015.

“The innovative combination of BorgWarner’s electrohydraulic controls
know-how with our advancements in wet-friction materials and clutch systems
has resulted in a fuel-efficient and exhilarating driving experience,” said
Bernd Matthes, President and General Manager, BorgWarner Transmission Systems.
“The combination is clearly resonating with more and more customers and with
the driving public.”

DualTronic(TM) debuted to rave reviews on the VW Golf R32 DSG and the Audi
TT 3.2 in 2003. The technology is now available on a range of VW and Audi
vehicles introduced since then, including the diesel and turbocharged direct-
injected gasoline engine versions of the VW Golf, the VW Touran, the VW
Passat; the VW Jetta; the Audi A3 Sportback; the Skoda Octavia; and the Seat
Altea, Toledo and Leon.