3 SERIES -THE BEST GETS BETTER

New looks, new engines, agility chassis package and new 318Ci convertible.

Britain's best-selling compact executive car, the BMW 3 Series, will receive a
fresh new face in September 2001 and a range of chassis and specification
enhancements as well as two new engines.

The appearance of the 3 Series Saloon and Touring models will change with a new
kidney grille, lower front and rear valance, a new headlight and indicator
design and the inclusion of the side repeater indicator into the swage line
behind the front wheel arch. The Saloon will also have a modified rear light
cluster. These changes add a new, more muscular face to both models and
distinguish them still further from the Coupé and Convertible models which
remain unchanged.

Agility chassis package

All 3 Series models will benefit from revised suspension settings and a more
responsive steering rack. These changes offer better driving 'feel' and a more
sporting and agile response in line with customer demand. The changes were
launched on the new Compact range (due for UK introduction in August) and
applied to the 330i/Ci models in April. Now all four cylinder and smaller six
cylinder models will share this benefit.

New petrol and diesel engines

From September, the 318i will receive a new 2 litre four cylinder engine.
Delivering 143 bhp and 200 NM of torque this engine, the second to be produced
at Hams Hall in the West Midlands, features BMW's revolutionary Valvetronic
technology. This eliminates the need for a throttle butterfly and the fully
variable valve lift helps the engine breathe more efficiently. The result is
at least a 16 per cent improvement in fuel economy and a corresponding
reduction in CO2 emissions, whilst increasing power by 21 per cent compared to
the previous engine. The 318i Saloon will return 45.3 mpg in the combined EU
cycle.

And it is not only the petrol engines which have received the attention of
BMW's engineers. The highly praised four cylinder diesel engine in 320d now
has common rail fuel injection and will power the 320d Saloon and Touring
models and the 320d Compact. An additional 14 bhp takes the power up to 150
bhp and it also delivers 330 Nm of torque (previously 280 Nm). The new 320d
records an extremely efficient 51.4 mpg in the combined EU consumption cycle.
The 320d models will also be available for the first time with a five speed
automatic transmission.

Higher standard specifications

Other changes to the 3 Series models include the introduction of manual air
conditioning as standard on all non-SE 3 Series four cylinder models (excluding
316ti Compact), new interior trims and three additional exterior colours.
Also, the Steptronic automatic gearbox action has been reversed: in manual
mode pushing the gearlever forward will now result in changing down a gear
rather than up. All six cylinder models will have Dynamic Stability Control
(DSC) as standard. Finally, new 16 inch alloy wheels will be standard on four
cylinder SE models of the Saloon, Touring and Compact.

New 318Ci Convertible

The 3 Series Convertible, the UK's best selling four seat soft top, is set to
broaden its appeal still further with the introduction of a new entry level
model. The 318Ci Convertible uses the new 143 bhp Valvetronic engine and 318Ci
joins the 320Ci, 325Ci and the 330Ci to complete the line-up. The 318Ci
Convertible will be £24,845 on the road.

New options for BMW 3 Series

Sequential Sports Gearbox

Underlining the sporting character of the 3 Series is the introduction of a
sequential sports gearbox (SSG) option for the 325i and 330i Saloon and Coupé
models. This clutchless manual five speed gearbox is operated by two paddles
behind the steering wheel or via the gear lever. It is expected to be
available to UK customers from December 2001 and its price will be announced
nearer the time.

For the first time a wide screen On Board Monitor is now available on all 3
Series models. With the ability to display split screen viewing in navigation
mode, drivers
can both read the direction and see a map simultaneously. It also benefits
from soft screen scrolling enabling the car to remain at the centre of the map
at all times.

The rain sensor option has also been upgraded at no extra cost. Now
incorporating automatic light beam control, the car will automatically activate
its lights when it becomes dark.

"These changes show that BMW is not sitting on its laurels" said Jim
O'Donnell, Managing Director of BMW (GB) Ltd. "3 Series may be enjoying a
record year but we are aware of the competition we face and intend to maintain
our lead."

Firm prices for the specification increases and the new engines are not yet
available but the volume-weighted price increase will average around 1.5 per
cent. Added value to the customer will be over 2.0 per cent thus increasing
the price competitiveness of BMW's most popular range.

Ends