BorgWarner Turbo Systems and Honeywell have settled their patent dispute relating to variable geometry turbochargers by extending their licensing arrangement. The $29.1 million U.S. agreement covers the almost one million units and service production expected to be produced during the period of this agreement. The multi-year agreement extends from July 1, 2003 through the end of 2006 when the Honeywell patent expires. Payments are to be made in each of 2003 through 2005, with approximately 40% of the total to be paid in 2003 and approximately 49% of the total to be paid in 2004. “This agreement enables us to concentrate on delivering high quality products and guarantees their continued availability to our customer,” said Timothy M. Manganello, president and CEO of BorgWarner Inc. “In addition, it allows BorgWarner Turbo Systems to continue its strong performance as the need for turbocharger technology intensifies to improve fuel economy and air quality. BorgWarner is committed to developing leading turbocharger technology to meet these needs and we remain confident about our long-term growth prospects.” Manganello also confirmed the company’s guidance for 2003 of earnings per share in the range of $6.20 to $6.35. BorgWarner Turbo Systems had a temporary license through June of 2003 to manufacture and ship the disputed turbocharger. Turbo Systems is a leading designer and manufacturer of turbochargers for the passenger car and commercial vehicle markets.