New Race Series for the Formula One Champions of Tomorrow

Formula BMW UK to launch in 2004

The first step to Formula One
British motor sport will receive a major boost in 2004 with the introduction of
the Formula BMW UK Championship. Designed to be the perfect launch-pad for the
next generation of Grand Prix stars, Formula BMW features mini-F1 cars -
complete with wings and slick racing tyres - powered by a 140 bhp engine that
comes directly from the BMW K 1200 RS motorcycle. With packed grids of evenly
matched cars plus top speeds approaching 140mph, Formula BMW championships have
already proved a huge hit with both young drivers and fans in Germany and the
Far East. Now the UK, too, will host its own race series with full backing
from BMW UK and BMW Motorsport in Germany.

The 2004 Formula BMW UK Championship will be won and lost over ten race
weekends with each meeting featuring two Formula BMW races to create a 20-round
series. All of these double-header fixtures will be held in conjunction with
the UK's premier motor sport drawcard, the high-profile British Touring Car
Championship.

"We are delighted to have put together such a high-profile calendar," says
Peter Walker, Motor Sport Manager, BMW UK. "As part of the BTCC package, the
2004 Formula BMW UK Championship will enjoy substantial exposure up and down
the country offering fans thrilling entertainment and business partners a
high-profile platform for their all-important corporate activities."

"Formula BMW is firmly established around the globe as the best entry level
form of motor racing for promising young karters seeking to graduate to
single-seaters on their way to Formula One," says BMW Motorsport Director Mario
Theissen. "With the BMW WilliamsF1 Team leading the FIA World Championship and
with the recent decline of some other British junior formulae, we believe this
to be the perfect time for us to introduce Formula BMW into the UK. The series
will have BMW's full support. To that end, BMW UK will be offering an
unprecedented package of scholarships, driver education and coaching plus prize
money in our efforts not only to discover new talent but also to provide all of
our young graduates with the right credentials for them to go the whole way to
the top. We are also in pole position to maximise our partnership with the BMW
WilliamsF1 Team to the undoubted benefit of our ambitious young competitors."

Underlining its overriding emphasis on youth, it is hoped that the 2004 Formula
BMW UK Championship will be open to all those aged between 15 and 25 on
1 January, 2004 providing they hold the appropriate grade of competition
licence. BMW UK is currently seeking special dispensation from the Motor
Sports Association, the governing body of motor sport in UK, for 15-year-olds
to compete in a British single-seater championship for the first time in UK
motor sport history.

"Formula BMW championships in Germany and Asia are also open to 15-year-olds
and we are working closely with the MSA to ensure we, too, have this new age
limit," confirms Walker. "The overriding philosophy behind the Formula BMW
concept is to provide those with a proven track record in kart racing with a
comprehensive insight into car racing. The series introduces talented young
drivers to all the various demands of professional motor racing. Apart from
honing their driving skills, this also entails physical fitness programmes and
tuition in other aspects of the sport, such as technology, sponsorship and
media work. Moreover, we are confident that BMW's pro-active role in the
running and promotion of the championship will make it easier for teenagers to
join forces with teams and parents in finding sponsors for their training
programme."

The BMW-powered single-seaters are not only designed to teach racecraft and
race car set-up to a new age group but they also establish a new benchmark for
safety technology - more so in 2004 when the cars will be adapted to
incorporate the latest HANS head and neck protection system as proven in F1 and
F3000. The race cars feature a state-of-the-art carbon-fibre chassis, fulfil
the safety requirements for the far more powerful Formula 3 models, and even
reach some Formula One standards with innovations such as the BMW Formula
Rescue Seat (FORS).

On top of providing the best possible sporting environment for tomorrow's F1
stars to earn their spurs, BMW UK is also backing five carefully selected
Juniors all aged under 18 with scholarships each worth £35,000. These
beneficiaries will be selected on merit before the start of next season via a
two-stage evaluation course being run at the Formula BMW Racing Centre at
Valencia, Spain. This unique scholarship programme is the latest chapter in
BMW's history of nurturing young talent - a history that dates back to the era
of the hot-blooded BMW Junior Team featuring Eddie Cheever, Marc Surer and
Manfred Winkelhock in the late seventies as well as to the memorable BMW M1
Procar Series in which young drivers pitted their talents against Formula One
stars at Grands Prix.

Bridging the gap to F1 with the BMW WilliamsF1 Team
Every Formula BMW competitor will harbour a dream of making it all the way to
Formula One - and that's a dream BMW is well positioned to fuel through its
Grand Prix-winning partnership with the renowned BMW WilliamsF1 Team. As part
of their education, racers will be able to participate in wide variety of
exclusive activities in conjunction with BMW WilliamsF1 including special
lectures and visits to Formula One tests.

Team principal, Sir Frank Williams, will also present a special Frank Williams
Trophy for sportsmanship and he will certainly be following the fortunes of
those competing. "Formula BMW represents an excellent and cost effective
platform to introduce talent to motor racing. I am confident that next year's
series will be a great success and I would not be surprised if, in years to
come, its British graduates are contenders in Formula One," says Sir Frank.

Ends

For further information please contact:

Chris Willows, Corporate Communications Director
Tel: 01344 480109 Email: chris.willows@bmw.co.uk

Peter Walker, Motor Sport Manager
Tel: 01344 480259 Email: peter.walker@bmw.co.uk