BMW H2R RECORD CAR AND M3 COMPETITION PACKAGE MAKE NORTH AMERICAN DEBUTS AT THE LOS ANGELES INTERNATIONAL AUTO SHOW

Los Angeles, CA - January 5, 2005... BMW is making two significant debuts at
the Los Angeles International Auto Show - one in concept form, the H2R record
car; the other a production car, the M3 Competition Package. Both are
expressions of BMW's commitment to dynamic performance.

BMW H2R sets nine world speed records
BMW has proven what the hydrogen car is capable of, setting 9 records for cars
powered by a hydrogen-fuelled internal combustion engine. "Nine records marking
the start into the hydrogen age. BMW technology has already come a long way.
Now, together with politicians and the energy industry, we must turn our vision
of sustained mobility into reality," stated Professor Burkhard Göschel, Board
Member of the BMW Group, during the speed record trials in Miramas, France.
Achieving this amazing success at the high-speed Miramas Proving Grounds, the
BMW Group has clearly proven its conviction that hydrogen is able to replace
conventional fuel without requiring the driver to compromise dynamic
performance.

The specifications of the H2R Record Car are a testament to this possibility.
The 6-liter V12 engine develops an output of 285 horsepower. This engine
propels the BMW prototype to 100 km/h (62 mph) in approximately 6 seconds and
gives it a top speed of more than 186 mph, in excess of 300 km/h. Based on the
gasoline engine featured in the BMW 760i, BMW's hydrogen combustion engine
boasts advanced technologies such as BMW's fully variable VALVETRONIC valve
drive.

The main modifications to the engine involve the fuel injection system adapted
by BMW to the special attributes and requirements of hydrogen. The H2R Record
Car benefits from the results gained in series development of BMW's future
hydrogen engine for the world's first premium sedan built for dual-mode
operation.

BMW will launch a dual-mode version of the current 7 Series during the
production cycle of the present model, thus introducing the first car of its
kind able to run on both hydrogen and gasoline.

The H2R prototype set the following records shown here in terms of times
measured and speed achieved:
time in sec speed in mph
- Flying-start kilometer: 11.993 186.520
- Flying-start mile: 19.999 180.014
- Standing-start 1/8 mile: 9.937 45.285
- Standing-start ¼ mile: 14.967 60.132
- Standing-start ½ kilometer: 17.342 64.495
- Standing-start mile: 36.850 97.693
- Standing-start 10 miles: 221.773 162.328
- Standing-start kilometer: 26.749 83.627
- Standing-start 10 kilometers: 146.409 152.787

These results have been certified by the FIA. BMW works drivers Alfred Hilger,
Jörg Weidinger and Günther Weber took turns at the wheel of the Record Car
during their record-breaking session.

The BMW H2R Record Car was conceived, designed and developed by BMW Forschung
und Technik GmbH, the legendary subsidiary of BMW AG. The expressive,
purposeful exterior design was created by DesignworksUSA, the California-based
strategic design consultancy owned by BMW Group. The name "H2R" stands for
"Hydrogen Record Car".

BMW's motive in setting these records was not only to prove the power and
performance of the hydrogen engine. In addition, the reliability and durability
of the technology used clearly demonstrates BMW's leadership in developing the
hydrogen engine to production standards. In this process BMW is concentrating
on the combustion engine, simply because the combustion power unit, given the
sum total of all its features and characteristics, still offers the largest
number of advantages and benefits all in one.

The M3 Competition Package - for the discerning driver who seeks the ultimate
in handling and responsiveness.
Already renowned for its performance and handling, the Competition Package
takes M3 performance to the razor's edge. Every aspect of the M3's handling
has been tweaked resulting in the best-handling M3 ever.

The wheels are 19-inch forged-alloys with high-performance tires. They connect
to a suspension that has been tuned specifically for the Competition Package.
Turn-in is quicker with a more direct steering ratio which goes from 15.4:1 to
14.5:1.

M Track mode and brake system taken from the BMW M3 CSL
The Dynamic Stability Control system includes a less intrusive M track mode, as
on the M3 CSL, ensuring the security of DSC and spirited driving too. For
inclement conditions the regular DSC mode remains. The brakes, also adopted
from the M3 CSL, include compound and cross-drilled rotors. The front rotors
have also been enlarged from12.8 to13.6 inches.

As the serious enthusiast would expect, the Competition Package is available in
combination with the standard six-speed manual or the optional Sequential
Manual Gearbox.

The interior enhancements of the package are subtle but purposeful. The
Alcantara steering wheel and handbrake grip feel good to the touch. The
addition of the steering wheel-mounted button for the DSC M track mode requires
the deletion of the multi-function controls and cruise control. The
Competition Package is available with all M3 Coupe interior and exterior color
combinations. Two trim items are exclusive to the Competition Package.
Special Competition Package aluminum trim is included on the interior. A new
exterior color, Interlagos Blue, is offered only with this package.

The Competition Package will be available for 2005 M3 Coupes beginning with
December 2004 production. The price for the package will be $4,000.