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AUBURN HILLS, Mich., Aug. 25 /PRNewswire-FirstCall/ — BorgWarner’s all-
wheel drive transfer case system will be standard on the new Audi Q7, a luxury
performance SUV scheduled to debut in 2006.

“BorgWarner TorqTransfer Systems is delighted to add Audi to the list of
valued customers who benefit from our advanced technology, quality, and
creative solutions to all-wheel drive challenges,” said Cindy Niekamp,
President and General Manager, BorgWarner TorqTransfer Systems. “We are proud to bring BorgWarner’s leadership in all-wheel drive to the owners of this distinctive vehicle.”

The BorgWarner all-wheel drive transfer case system on the Q7 enhances
vehicle handling and fuel efficiency. A BorgWarner Morse TEC Hy-Vo(R) chain
provides quiet all-wheel drive operation. System production will begin during
the fourth quarter of this year at BorgWarner TorqTransfer Systems in Margam,
Wales. The facility also manufactures synchronizers and four-wheel drive
systems for other customers. Representatives of Audi, the Welsh assembly
government, various suppliers and local civic officials joined BorgWarner at
an event there today celebrating the upcoming launch.

“As Audi celebrates the 25th anniversary of the Audi Quattro system,
BorgWarner is pleased to add its all-wheel drive transfer case technology to
Audi’s premium all-wheel drive product offerings,” said Ms. Niekamp.

BorgWarner TorqTransfer Systems is a leading independent global designer
and producer of transfer cases and torque management devices for all-wheel
drive passenger car, crossover vehicle, sports-utility and light-truck
markets. These systems enhance vehicle stability, security, and drivability.