BorgWarner Turbo Systems is establishing two new facilities in Asheville, North
Carolina and Oroszlany, Hungary that will enable it to continue to meet the increasing
demand for turbochargers. The company expects that global market for turbochargers
will grow by 30 percent over the next five years.

Construction began on a 13,650 square-foot plant in Oroszlany that will expand
Turbo Systems’ production base for passenger-car turbochargers in support of
the increasing European demand for this product. "By increasing our proximity
to the new Audi engine plant in Gyor, Hungary, near Oroszlany, we will be able
to further enhance our support of one of our largest passenger-car turbocharger
customers,” said Lee Wilson, president of BorgWarner Turbo Systems.

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The operation will initially employ about 50 people and is expected to assemble
400,000 units in 2002.

In Asheville, North Carolina, ground was broken for the BorgWarner Turbo Systems
North American Technical Center. The 23,000 square-foot, state-of-the-art facility
will be located at the Turbo Systems operation in Asheville. The new technical
center will replace an older facility located in Indianapolis, and will encompass
turbocharger test facilities as well as engine and engine systems testing facilities.

Construction is expected to be completed by the end of 2001. "Completion
of this project will bring the engineering, manufacturing and support groups
of BorgWarner Turbo Systems North America together in one facility, maximizing
development and operational efficiency and shortening time to market,” Wilson
said.

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