There actually was a class action suit filed relating to the issue. If I am remembering the letter I received correctly any prior, premature failures out of the warranty period were covered and cost reimbursed. Where there was no failure, the car had to be to be inspected by Audi within a specific period and if needed, was to be replaced at the owners cost. If it was good at inspection it was covered by Audi for an extended period. I received niticeof the settlement in the mail from Audi. Would have to look for the letter to confirm the details.

On dealer inspected the belt and said it was marginal and should be replaced. My extended warranty indicated that it would not cover since it was not bad but would cover it if it faied. Got a second opinion from another dealer and the belt was fine. I'll get it replaced before the extended warranty is up. Have about 39,000 mi. on a 2003 225.

The class action suit was settled and paid out.  The timing belt on my 2000 180HP broke at 75k miles in 2005.  At the time, I pressed the dealer to get Audi to pay for it, and they ended up covering 75% of the repair cost, which still left me with $1500 to pay.  Then about a year and half ago I got the class action notice in the mail, submitted all the requested documentation, and ended up getting reimbursed for the $1500.  It may be too late to get a settlment now, but it's worth investigating for anyone whose timing belt broke.