BorgWarner Buys Majority Stake in Beru AG; William Cline to Lead Acquisition Team

In a deal first announced in November 2004, BorgWarner has completed the purchase of approximately 62 percent of the outstanding shares of German-based Beru AG from its major shareholders, The Carlyle Group and a group of family shareholders. The sale, made as a cash transaction, totaled approximately $490 million. BorgWarner has tapped William (Skip) Cline to lead the BorgWarner task force for the Beru acquisition and provide coordination between the two companies. He has been named vice president, acquisition coordination and special projects.

AUBURN HILLS, MI — In a deal first announced in November 2004, BorgWarner has completed the purchase of approximately 62 percent of the outstanding shares of German-based Beru AG from its major shareholders, The Carlyle Group and a group of family shareholders. The sale, made as a cash transaction, totaled approximately $490 million.

Headquartered in Ludwigsburg, Germany, Beru AG is a leading global automotive supplier and manufacturer of diesel cold starting technology, gasoline ignition technology and electronic and sensor technology. Beru’s major customers include, among others, BMW, DCX, GM/Fiat, VW/Audi, Ford, Porsche, PSA, Renault, Isuzu, Siemens VDO, Valeo, Deutz and MAN.

BorgWarner Chief Executive Timothy Manganello said the anticipated tightening of emissions standards worldwide over the next few years will likely accelerate demand for diesel-powered light vehicles and Beru’s technology and product expertise will enhance BorgWarner’s ability to meet the growing demands for technologies that address fuel efficiency, performance and air quality.

Manganello added the company plans to maintain Beru as a stand-alone business of BorgWarner within its engine group. The transaction is expected to be accretive to earnings beginning in 2005. Beru results will be consolidated within the BorgWarner Engine Group beginning in the first quarter of 2005.

BorgWarner has tapped William (Skip) Cline to lead the BorgWarner task force for the Beru acquisition and provide coordination between the two companies. He has been named vice president, acquisition coordination and special projects.

Cline has been with BorgWarner for 22 years and has served as vice president and controller since 1993. Prior to joining BorgWarner, he was with Ernst & Young.

In addition, Jeffery Obermayer was named vice president and controller, replacing Cline. He joined BorgWarner in 1982 and has been vice president and treasurer since 1999. Prior to that he was vice president, finance and business development for BorgWarner Transmission Systems.

Anthony Hensel was appointed vice president and treasurer. Hensel succeeds Obermayer and most recently held the position of vice president, business development and acquisitions and was instrumental in the BorgWarner acquisition of Beru.

Finally, Christopher Vance was named vice president, business development and M&A. He replaces Hensel as vice president, business development and M&A. He most recently held the position of vice president, finance for BorgWarner Transmission Systems, where he also managed business development activity for the unit. He joined BorgWarner in 1997 as a plant controller and became Group Controller for Transmission Systems in 1999. He is also a director of NSK-Warner, the company’s joint venture in Japan.

For more information about BorgWarner, go to: www.bwauto.com.

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