BMW Motorcycles Debuts TV Spots of Highly Successful "Rider-To Rider" Marketing Campaign

Woodcliff Lake, New Jersey, September 7, 1999. BMW Motorcycles will introduce
its first nationally placed television ads in early September. In the
tradition of the highly successful rider-to-rider print campaign, the TV ads
take a step away from the norm, showing the freedom and exhilaration of riding
motorcycles.

Since the introduction of the print campaign, results have been quite
successful. Not only has the brand image been updated, unit sales have shown
the difference, with a strong surge in sales during 1998 and a 29% increase
during the first six months of 1999. In fact, BMW has sold over 5,000 machines
through June - more than the total annual sales of 1996.

Although success is welcome, there is still room for growth. A BMW motorcycle
has always appealed to a select audience that appreciates the technological
leadership of the Bavarian marque. The challenge has been to show the human
side, that BMW's have always been the choice for the adventurous lifestyle.

"Our next step has to be television"

The broad reach and potential for a more compelling, emotional message than
print can deliver led Ed Robinson, Vice President of BMW North America,
Motorcycles, to point out "our next step has to be television." BMW Motorcycles
has opted for the first time to extend the imagery and message of the print
campaign to the television medium, with creative produced in the U.S., for the
U.S. market.

The freedom of motorcycles versus the constraints of everyday life

Two :30 television spots - "Traffic/Free" and "Hamster" - were shot in New York
City at the end of July by the award-winning French-born director Erick
Ifergan, known for his stunning work for Seiko and Mitsubishi.

Both spots were designed to extend the rider-to-rider perspective and stark
imagery of the print campaign. A comparison is drawn between the individualism
and freedom of the motorcycle experience and the inherent time pressures,
constraints and social obligations of everyday life.

"Traffic/Free" makes this point explicitly with a hot, sweaty traffic jam on a
congested city street, shot beautifully but with a certain sadness and tension,
as people stuck in their stalled cars impatiently honk their horns or slump
exhausted at the wheel. The motorcycle is contrasted with the restraints a car
can represent, strapped in, and loaded up. Only gradually is it apparent that
we see these unfortunates through the eyes of a motorcyclist as he sweeps away
from the cramped streets and towards freedom and the open road.

"Hamster" is more implicit and humorous, with a small rodent trapped in a
plastic ball in a sterile office environment, smacking into steel furniture and
walls in a fruitless effort to escape. All this is contrasted with a
motorcyclist's experience of speed, maneuverability and sheer riding pleasure,
through active riding footage.

"Most of all we want to show the incredible exhilaration of riding
motorcycles..."

Music overlays both spots: there is no narration and no voiceover to clutter
the visual impact. Both spots close with a simple dramatic super: "Ride"
followed two beats by "Motorcycles." Only then does the BMW roundel appear
above the word 'Motorcycles' to complete the identification. The message is
general enough for even non-riders to appreciate and yet emotional and
authentic for all motorcyclists. As Kerri Martin, Brand and Event Marketing
Manager for BMW Motorcycles points out: "Most of all we want to express the
incredible exhilaration of riding motorcycles, specifically BMWs."
BMW's best-selling R 1200 C cruiser model is used in both spots, as the bike
that best epitomizes the spirit of freedom and escape that riding a motorcycle
provides to any owner.

"The market is the ultimate test"

The two spots tested "through the roof" with BMW motorcycle owners in focus
groups held in August at two secret locations. They found the visual treatment
clever and intelligent, while being successful in emphasizing the key message:
"Escape from the rat race, ride motorcycles." or "That you should ride. That it
shouldn't be about posing" or simply - "Freedom."

However, as Steve Bowen, supervisor on the account for Merkely (and BMW
motorcycle owner) admits, "the market is the ultimate test." The next exposure
to consumers comes in early September in three test markets: Salt Lake City,
Daytona/Orlando and Chicago. If these cities are successful, a full national
cable and spot television schedule will follow in 2000.

The test market ads will rotate Thursday through Sunday in all three markets,
for a four-week period, on targeted spot television programs (including news
and sports) and spot cable on networks such as ESPN, Discovery, TLC and Sci-Fi.

The ads are targeted primarily to those who currently don't ride, but have the
great disposition to ride. This includes those who are either first-time or
especially, "Chapter Two" riders (those returning to the sport after a hiatus
of several years). A secondary target are current riders who, through their
experiences on the road, can appreciate the unique BMW motorcycling experience.

It's BMW's hope that once consumers see these unusual and compelling television
ads, that they will agree with the respondent in one focus group who said "All
the people in the cars are the people you don't want to be and the guy on the
bike is who you want to be."

Bringing the message to every aspect of marketing

In addition to the TV spots, the print campaign will continue in "buff"
motorcycle books, and consumer magazines which emphasize the same active and
rugged pastimes and independent lifestyle as are shared by the most passionate
motorcycle owners. BMW has also utilized this message in its event marketing.
A new display truck dubbed the "R 1200 C Road Show" will travel year-round to
sporting events, car shows and major motorcycle events. This cruiser type
motorcycle is BMW's most popular model, and competes in the most competitive
segment of the market. The truck contains a fleet of R 1200 C's available for
test rides to qualified people, and the full line of accessories available for
both the machine and rider. When on the road, the truck features a clear,
lighted display area where a machine will be positioned, in view of those on
and along the road.

As serious as those who ride BMW Motorcycles are to pushing themselves into the
next challenge, so is BMW Motorcycles to challenging the market. Riding itself
is a skill with some risk, that, with concentration, can yield great rewards.
The same can be said of BMW Motorcycle's unique marketing efforts to date.
With the addition of TV advertising and event marketing, the rewards look to be
even greater.

Background: A new approach to advertising motorcycles, BMW speaks
"rider-to-rider"

In 1998, BMW Motorcycles unveiled a print campaign, created by the New York ad
agency Merkley Newman Harty, that was highly unusual not only for the company,
but for the whole motorcycle industry. Instead of ads featuring a large
"beauty shot" of the bike with reams of descriptive copy that are standard for
the industry, the new BMW ads concentrated on the human (as opposed to the
mechanical) aspect of the motorcycle experience: the rider, and especially the
dedicated rider that is the typical BMW owner. "The whole point of the
campaign..." stated Ed Robinson, Vice President of BMW North America and head
of BMW Motorcycles in the U.S., "is to show that BMW is the indisputable mark
of a rider."

Stark black and white photography of genuine, road-experienced motorcyclists in
well used gear (instead of glamorous models in pristine outfits) were
juxtaposed with headlines written in an authentic rider-to-rider voice about
common riding situations (instead of a corporation-to-rider boast about the
product). Lines like "6AM - Saturday morning - I hate it when I oversleep" and
"Does riding in heavy rain count as bathing?" evoke not only the realities (as
opposed to fantasy) of motorcycling but also the passion that motivates those
who choose to ride.

That this unique creative approach was chosen is less surprising when you
consider that virtually all the persons working on the account for Merkeley
Newman Harty, and BMW are, in fact, dedicated BMW motorcycle riders themselves.

BMW of North America, Inc. was established in 1975, at which point the company
assumed marketing and distribution responsibilities of BMW automobiles in the
U.S. from the previous private distributor. Motorcycle marketing and
distribution was added in 1980. Since then the company's North American
operations have grown to include marketing, sales and financial services
organizations in the United States and Canada; a South Carolina manufacturing
operation; a design firm in California; and various other operations throughout
the U.S. and Canada. BMW is represented in North America through a network of
more than 375 automobile and 190 motorcycle retailers in the United States and
Canada. BMW (US) Holding Corp., the marque's North American headquarters, is
located in Woodcliff Lake, New Jersey.