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BORGWARNER AGREES TO SELL SPARK PLUG BUSINESS TO FEDERAL-MOGUL

Auburn Hills, Michigan, July 2, 2012 – BorgWarner announces the sale of its spark plug business to Federal-Mogul Corporation. The sale includes manufacturing facilities in Chazelles, France and Neuhaus, Germany. Completion of the transaction is subject to regulatory approvals.

The spark plug business was a small segment of the BERU operations acquired by BorgWarner in 2005. Sales were approximately $80 million in 2011. BorgWarner will continue its focus on expanding the core BERU Systems products of glow plugs, diesel cold start systems and other gasoline ignition technologies.

As a result of the transaction and related restructuring activities, including the writeoff of excess purchase price allocation related to the 2005 BERU acquisition, BorgWarner will incur a pre-tax loss of $50-$60 million subject to final closing adjustments.

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