BMW AT THE NORTH AMERICAN INTERNATIONAL AUTO SHOW:

5 Series all-wheel drive models makes world debut, M5 makes North American
debuts and H2R Hydrogen Record Car to be presented

Woodcliff Lake, NJ - January 10, 2005... The BMW 5 Series continues to go from
strength to strength with both world and US introductions at the North American
International Auto Show in Detroit. A new generation of in-line six-cylinder
engines make their world debut in the 5 Series. Optional all-wheel drive for
the 5 Series also makes its world debut. The 5 Series Sport Wagon, along with
the most powerful BMW 5 Series the world has ever seen, the new M5, make their
North American debuts. BMW's H2R Hydrogen Record Car, which set nine
international speed records, will also be shown.

World debut: 5 Series with xDrive all-wheel drive.

BMW is presenting the all-wheel-drive 5 Series models to the world public for
the first time. In the U.S. these models will be offered as the 525xi and
530xi sedans as well as the 530xi sport wagon. These are the first passenger
cars that use BMW's xDrive all-wheel drive system, which has proven itself in
the X3 and X5 Sports Activity vehicles. xDrive goes beyond the traditional
advantages of all-wheel drive to offer the driver an even higher level of
stability and traction in all driving situations. While conventional all-wheel
drive only responds when the wheels are already spinning, xDrive begins to
react even before wheel spin is able to build up. Via an electronically
controlled multiple-plate clutch, the flow of power is redistributed within
milliseconds between the two axles in the interest of enhanced traction,
driving stability and agility.

Innovation at its best: BMW's new six-cylinder engines.

BMW is also presenting a new family of engines that set new standards in every
respect. The new inline-six gasoline engines with more power, greater fuel
economy and lower weight than their predecessors are the lightest six-cylinders
in their segment.

Apart from fully variable VALVETRONIC valve drive in place of a conventional
throttle, there are numerous other advancements which include the composite
magnesium/aluminum crankcase, lightweight camshafts, the electric water pump,
the fully controlled oil pump, single-belt drive and the magnesium cylinder
head cover.

In order to offer improved performance while at the same time improving fuel
efficiency and meeting ever more challenging emissions requirements, two
3.0-liter engines will be offered. In the U.S., the 525i and 525xi will offer a
3.0-liter engine which produces 215 hp (SAE net) and 185 lb-ft of torque at
2,750 rpm. Responsiveness in everyday driving situations is outstanding. Nearly
85 percent of peak torque is available from 1000 rpm all the way to 7000. The
530i and 530xi models will feature a 3.0-liter engine which produces 255 hp
(SAE net) and 220 lb-ft of torque. Peak torque is available between 2750 and
4000 rpm. Here fully 90 percent of peak torque is available between 1500 and
6700 rpm.

The new generation of engines offers the customer higher output and more torque
over a broader useful speed range on even less fuel than before. On average,
fuel consumption is lower by approximately 7 per cent versus the previous
models.

North American Debut: 5 Series Sport Wagon.

BMW will present the new 5 Series Sport Wagon for the first time in North
America. The 530xi combines sporting performance, superior function,
outstanding comfort and generous space inside. Standard features boasted on the
car include xDrive with Hill Descent Control and a panorama sliding roof.
Options include BMW's Head-Up Display as well as Adaptive Headlights.

Measuring 190.6 inches in length, the BMW 5 Series Sport Wagon is 1.50 inches
longer, 1.81 inches wider, and 0.91 inches higher than its predecessor. This
increase in size provides greater roominess particularly in the luggage
compartment.

The rear lid opens and closes automatically as an option simply by pressing a
button on the key. Convenient access to the variable luggage compartment is
also possible through the rear window, which opens separately for smaller odds
and ends. Luggage compartment capacity varies from 17.5-56.5 cu. ft with the
rear-seat folded down and the car loaded up to roof level - that is 3.15 cu. ft
more than on the previous model.

US Debut: New BMW M5

The absolute pinnacle in Sports Sedan motoring has a name: BMW M5. Relatively
reserved in its looks, this super-sport sedan is the most sophisticated and
powerful

5 Series ever - five liter capacity, 10 cylinders, 500 hp (SAE net) output, 383
lb-ft maximum torque, and engine speeds in excess of 8,000 rpm. The BMW M5
boasts the most innovative drive concept in its class, the best power-to-weight
ratio, super-car handling, as well as outstanding everyday driving qualities.

The seven-speed SMG gearbox is the first transmission in the world with seven
sequential gears and Drivelogic which offers no less than 11 gearshift options.
BMW's V10 is the only high-speed engine currently available in a production
sedan, making the M5 BMW's most powerful production model. Running at engine
speeds of up to 8,250 rpm and with specific output of 100 hp/liter aluminum
engine in bedplate design and with double-VANOS is comparable to a racing
engine in every respect.

The car's acceleration and driving dynamics make the M5 truly outstanding on
the road: acceleration from 0?60 mph comes in just 4.5 seconds. The ongoing
surge of power continues all the way to 155 mph (250 km/h), where the speed of
the M5 is finally limited electronically.

Together with the variable M differential lock and DSC with two dynamic driving
programs available on demand, the chassis and suspension with Electronic Damper
Control (EDC) provide a perfect match for this outstanding power. Benefiting
from its extra-large and highly efficient braking system carried over from
motorsport, the M5 comes to a standstill from 62 mph after just 118 feet, with
a stopping distance of less than 460 feet from a speed of 124 mph.

BMW H2R: Breaking records with the hydrogen internal combustion engine.

BMW is presenting the H2R Hydrogen World Speed Record Car. In September 2004
this prototype impressively proved the potential of a hydrogen car with a
combustion engine, achieving nine international records in one day. This
clearly proves the BMW Group's conviction that hydrogen can replace
conventional fuel without having to forego the performance and dynamics of a
modern premium automobile.

Displacing six liters, the 12-cylinder engine featured in BMW's record-breaking
car is based on the gasoline engine featured in the BMW 760i and develops more
than 285 bhp/210 kW. This accelerates the prototype to 60 mph in approximately
six seconds and gives the car a top speed of 186.5.

The BMW H2R was developed by BMW Forschung und Technik GmbH in just 10 months,
benefiting in the process from the series development of BMW's hydrogen car
based on the 7 Series. The aerodynamically optimized outer skin of the
record-breaking prototype was designed at BMW's California-based design
subsidiary, DesignworksUSA. Made of carbon-fiber-reinforced plastic, the H2R
has a drag coefficient (Cd) of just 0.21.

With a full tank and with the driver at the wheel, the BMW H2R weighs just
1,560 kg or 3,440 lb, not only setting up world speed records, but also
emitting nothing but vapor.

The H2R prototype set the following international 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