BMW X3 SAV Phase I marketing campaign launches into Canadian market

Whitby, Ontario...The highly anticipated new BMW X3 Sports Activity Vehicle
(SAV) has been launched into the Canadian market via Phase I of BMW Group
Canada's innovative bilingual marketing communications program.

The 'Ultimate Drives Across Canada' guidebook, the first initiative in this
phase of the marketing program, was created by Rogers Marketing Solutions, a
division of Rogers Publishing, under the guidance of Cundari Integrated
Advertising. The glove box size, full colour, glossy 16-page booklet features
driving adventure anecdotes from the west coast's Wild Pacific Trail, Gatineau
Park in Quebec, and the Niagara Escarpment. The booklet also features a
special section dedicated to xDrive, a new all-wheel drive system, introduced
in the BMW X3 SAV. The web component of the campaign was created by Blast
Radius and the media plan was developed by The Media Company.

A total of 1.1 million copies of the 'Ultimate Drives Across Canada' booklet
will be distributed via Canadian Business Magazine (November 10), Maclean's,
L'actualité, Montreal Gazette, Montreal La Presse, Ottawa Citizen, Globe and
Mail, National Post, Calgary Herald and the Vancouver Sun during the week of
November 24th.

BMW Group Canada is offering the 'Canadian Rockies Ultimate Drive' contest as
another element of the X3 Phase I marketing campaign. The vacation for two to
Alberta includes two nights stay in each of the following hotels - Fairmont
Chateau Lake Louise, Fairmont Banff Springs Hotel and Fairmont Jasper Park
Lodge, with airfare supplied by WestJet. Contestants can enter by mailing in
the reply card found in the 'Ultimate Drives Across Canada' guidebook or online
by visiting www.bmwX3.ca.

Online advertising efforts for the new BMW X3 SAV will commence on November
26th. The one-month online ad campaign will be featured on news websites
across the country, as well as major portals such as Google.ca and
city-specific websites. Each ad will lead viewers to www.bmwX3.ca where they
can register for the contest and obtain more information about the new BMW X3.

The BMW X3 Phase I marketing communications program will wrap up in December
and the Phase II marketing drive will commence in January with a full
multi-media advertising campaign.

Built upon the successful theme of the BMW X5, the all-new BMW X3 continues the
tradition of a Sports Activity Vehicle with sport sedan qualities. Offered
with two engine choices, pricing is set at $44,600 for the X3 2.5i and $49,850
for the X3 3.0i. Limited allocation of the X3 3.0i reached Canadian retailers
in late November, with the X3 2.5i following in the new year.

As is traditional with all new BMW's, groundbreaking technology is featured
prominently in the design. In the case of the X3 the new technology that is
featured is xDrive, an all-wheel drive system that allows the driving force or
torque to be distributed variably and infinitely between the front and rear
axles. Without any intervention from the driver xDrive acts proactively to
provide the best possible acceleration, traction and stability at all times and
in all conditions.

BMW Group Canada, based in Whitby, Ontario, is a wholly-owned subsidiary of BMW
AG and is responsible for the distribution of BMW luxury performance
automobiles, Sports Activity Vehicles, motorcycles, and the 2003 North American
Car of the Year - MINI. BMW Group Financial Services Canada is a division of
BMW Group Canada and offers retail financing and leasing programs on new and
pre-owned BMW and MINI Automobiles, as well as retail financing for new and
pre-owned BMW Motorcycles. A total network of 36 BMW automobile retail centres,
17 BMW motorcycle retailers, and 17 MINI retailers represents the BMW Group
across the country.

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