BMW X5 xDrive35d AND BMW 335d TO MAKE US DEBUT

========================================================= EDITOR'S NOTE: BMW will be premiering several new models at the North American International Auto Show in January. The first world premiere will be the production version of the BMW X6 Sport Activity Coupe. A comprehensive teaser and many photos are already available on www.press.bmwgroup.com. The X6 will go on sale in the US in late spring of 2008 as a 2008 model. The X6 will be offered in the US as an X6 xDrive35i equipped with the same 300 hp twin-turbo 3.0 liter inline 6-cylinder engine that you already know from several other BMW models and as an X6 xDrive50i equipped with a new 400hp 4.4 liter twin-turbo V8 engine. (No Embargo). The second world premiere will be the 1 Series Convertible. Again, a comprehensive teaser and many photos are available on www.press.bmwgroup.com. The 1 Series Convertible will go on sale in the US in late spring as a 2008 model (following the 1 Series Coupe by a couple of months). As with the 1 Series Coupe, the 1 Series Convertible will be offered as both a 128i equipped with a 230hp Valvetronic inline 6-cylinder engine and as a 135i equipped with BMW's award winning 300hp twin-turbo 3.0 liter inline 6-cylinder engine. (No Embargo). The NAIAS will be the North American premiere of the BMW Concept X6 ActiveHybrid that showcases the BMW two-mode hybrid drivetrain. The BMW Concept X6 ActiveHybrid promises far better driving dynamics than a conventional hybrid vehicles while, at the same time, reducing fuel consumption by up to 20 per cent versus a comparable vehicle equipped with conventional gasoline engine alone. A comprehensive press kit and many photos are already available on www.press.bmwgroup.com. (No Embargo). The NAIAS will also be the North American premiere of BMW Advanced Diesel with BluePerformance. BMW will announce the two 50 State compliant, BMW Advanced Diesel models that will be offered in the US in the fall of 2008. The press release associated with this announcement is attached. Both models will be launched as 2009 Model Year vehicles and pricing will be released closer to the on-sale date. Please note that the Embargo for this release in January 2nd, 2008. =========================================================

BMW X5 xDrive35d AND BMW 335d TO MAKE US DEBUT
BMW Advanced Diesel with BluePerformance.
Performance + Outstanding Efficiency

Woodcliff Lake, NJ - January 2, 2008... Entering a new era in the company's
mission to deliver ultimate driving machines that combine superior performance
with exemplary fuel economy, the BMW Group will debut two vehicle models
equipped with the BMW Advanced Diesel with BluePerformance at the 2008 North
American International Auto Show (NAIAS) in Detroit - the X5 xDrive35d and the
335d.

Successfully meeting the strict exhaust emissions requirements of the North
American automobile market, BMW Advanced Diesel - slated to hit US roadways in
late 2008 - will be available in all 50 states. The wide availability of these
vehicles marks a significant milestone in the BMW EfficientDynamics strategy,
which seeks to offer customers in automobile markets around the world maximum
driving pleasure with minimum fuel consumption and emissions.

BMW Advanced Diesel technology is being introduced into the US market in the
form of the 3.0-liter inline-six featuring Variable Twin Turbo Technology - an
engine widely acknowledged as the unchallenged benchmark for sporting
performance, motoring refinement and superior efficiency in other markets
around the world. At the 2008 NAIAS, BMW is presenting this 265-hp
high-performance diesel engine in both the BMW X5 xDrive35d and the BMW 335d.
To ensure full compliance with the demanding emission standards in California
and other US states, BMW uses SCR technology to reduce nitric oxides (NOX),
enabling nationwide introduction of BMW Advanced Diesel with BluePerformance as
a 50-state model (BIN5).

Leading the way:

BMW diesel competence for the US.

The history of BMW diesel engines began in 1983 when the BMW 524td was
introduced as the fastest diesel in the world. From that starting point, BMW
has spent 25 years continuously developing diesel technology. Today's BMW
Diesels are characterized by dramatically improved power and performance, fuel
consumption and emissions levels - reflecting the principle of BMW
EfficientDynamics in every respect.

Through their superior motoring refinement alone, BMW diesel engines have
helped to significantly eliminate any reservations regarding the acoustic
properties of a diesel engine. Indeed, great demand for BMW diesel engines has
helped BMW achieve increased market share not just in Europe, but in regions
across the world. Today no less than 67 percent of all new BMWs delivered to
customers in Europe are powered by a diesel engine.

While diesel engines of today represent an impressive standard for fuel
efficiency and emissions on the whole, BMW Advanced Diesel engines take this a
step further, setting the standard for torque and pulling power that could
never be achieved by a similar displacement gasoline engine - while consuming
25 percent less fuel on average than an equally powerful gasoline engine.

New generation of diesel technology:

Maximum dynamism, minimum emissions.

Maximum power, supreme efficiency: The first BMW Advanced Diesel with
BluePerformance is particularly well-suited to combine the driving dynamics and
motoring refinement of a premium automobile with the most current and demanding
standards for preserving resources and reducing emissions. Featuring
exceptional power and torque, the 3.0 liter inline-six diesel is one of the
most fuel-efficient and economical engines in its class.

Applying Variable Twin Turbo Technology, a small turbocharger first cuts in at
low engine speeds. Thanks to its low inertia, this turbocharger develops boost
(and extra power) in response to even the smallest movement to the gas pedal
and without the slightest delay. As engine speed increases, the second, larger
turbocharger cuts in, developing maximum torque of 425 lb-ft at just 1,750 rpm.
Interaction of the two turbochargers is controlled by the particularly
efficient, high-performance electronic engine control unit.

In addition to the above Variable Twin Turbo Technology, new technical
highlights of BMW Advanced Diesel - presented for the first time in 2007 -
include an aluminum crankcase and third-generation common-rail direct fuel
injection. Featuring precision-quality precise piezo-injectors to deliver the
precise dosage of fuel into the combustion chambers with the smallest volume of
pre-injection, the third generation system ensures a particularly clean
injection process with optimized fuel consumption, emissions figures and
running smoothness.

Given all of these qualities, BMW's 3.0-liter diesel with Variable Twin Turbo
has won the prestigious International Engine of the Year Award multiple times -
more than any other prize or acknowledgement. The engine is featured in a large
number of models in Europe and is now expanding its global story of success as
the BMW Advanced Diesel with BluePerformance.

At the 2008 NAIAS, the BMW 335d featuring Advanced Diesel with BluePerformance
for maximum output of 265 hp and peak torque of 425 lb-ft. will provide a clear
and convincing demonstration of these qualities. On the road, this means
acceleration from 0-62 mph in 6.2 seconds and average fuel economy of 23/33 mpg
(city/highway, provisional data).

The BMW X5 xDrive35d, will also debut in Detroit. Like the 335d, the X5
xDrive35d offers sporting character through BMW Advanced Diesel with
BluePerformance, while standing out as a high-torque Sports Activity Vehicle
with excellent qualities for long-distance motoring. The BMW X5 xDrive35d
accelerates from 0-62 mph in just 7.2 seconds and offers average fuel economy
of at least 19/25 mpg (city/highway, provisional data).

Non-partisan study in the USA:

BMW ranks No 1 in the reduction of CO2 emissions.

The introduction of Advanced Diesel with BluePerformance in the US continues
the global BMW EfficientDynamics development strategy of reducing both fuel
consumption and exhaust emissions. Applying this strategy, the vehicles offered
by BMW stand out worldwide by combining a higher standard of driving dynamics
with a significant reduction in both fuel consumption and emissions.

The new BMW 128i Coupe now being introduced in the US, for example, is powered
by the latest and, accordingly, most efficient version of BMW's inline-six
cylinder engine featuring VALVETRONIC technology. Apart from the enhanced
version of this fully variable valve management, this engine also features a
composite magnesium/aluminum crankcase and an electric coolant pump, operating
only on demand and to the level required. In the BMW 128i Coupe, this engine is
combined with six-speed automatic transmission of the latest generation, again
using innovative technology to ensure enhanced fuel economy, minimum emissions
and maximum driving pleasure. Innovations allowing for greater efficiency are
also being systematically introduced into all models sold by BMW in the US.
Pursuing this strategy, BMW has indeed made significant progress in recent
years in reducing average fuel consumption and CO2 emissions, the success of
these efforts being confirmed only recently in the latest issue of the US
Environmental Defense

Report. According to the study, BMW reduced the CO2 emissions of its car fleet
by 12.3 percent from 1990 through 2005 (its closest competitor achieved a 3
percent reduction in CO2 emissions), while sales in the USA increased four-fold
in the same period.

This independent, non-partisan study of the Vehicle Fleet Carbon Burden of all
vehicles operating in the United States between 1990 and 2005 concluded that
BMW has contributed far more than all other manufacturers in reducing fuel
consumption and CO2 emissions and makes specific reference to the positive
results of BMW EfficientDynamics.

Now, introducing Advanced Diesel with BluePerformance as part of BMW
EfficientDynamics, BMW seeks to continue the progress described in the
Environmental Defense Report well into the future, with the same intensity and
impact.

Most advanced exhaust gas management:

SCR catalyst with AdBlue injection.

To optimize emission management, Advanced Diesel with BluePerformance
incorporates an oxidation catalyst placed just downstream of the exhaust
manifold, a diesel particulates filter housed in the same unit and an SCR
catalyst with the urea injection. In addition to filtering out even the
smallest particles from the flow of exhaust gases, this combination ensures
effective reduction of nitric oxides (NOX) by way of a chemical reaction within
the exhaust system initiated by the injection of a small dose of urea referred
to as AdBlue. The ammonia (NH3) generated in this process within the SCR
catalyst subsequently converts the nitric oxides (NO and, respectively, NO2) in
the exhaust gas into environmentally compatible nitrogen (N2) and vapor (H2O).

AdBlue technology by BMW:

Optimized emissions without requiring additional maintenance.

To introduce AdBlue technology into the car, BMW has developed a two-tank
system ensuring convenient use of this new technology with all the benefits and
ease required by the customer. The amount of AdBlue required in each case is
injected from the active tank (approximately 1.6 gallons in volume) by means of
a dosage pump. And since the urea solution would freeze at a temperature of
12.2oF, this active tank, as well as the dosage pipes, are heated.

The active tank is connected to a second reservoir, referred to as the passive
tank. With its additional capacity of approximately 4.5 gallons, this passive
tank offers a plentiful supply of the urea solution. The average range provided
with this supply capacity is indeed sufficient to have the tank system
replenished only when the driver needs to change the engine oil. Hence, the
large amount of AdBlue stored in the reservoir enables the customer to enjoy
continuous driving, without having to change his/her service intervals. The
driver therefore benefits from the advantages of this environmentally friendly
emission technology throughout the entire running life of the car, without any
additional service or visits to the workshop. Since all BMWs sold in the US
benefit from The BMW Maintenance Program, the refilling of the AdBlue tanks
will be a no-charge service for 4 years or 50,000 miles.

AdBlue from the active tank is delivered to the dosing valve and atomize into
the exhaust system. Consistent distribution of AdBlue within the flow of
exhaust is ensured by the SCR mixer. The ammonia generated in the hot exhaust
flow subsequently acts as a reduction agent in the SCR catalyst and converts
environmentally harmful nitric oxides into nitrogen and water vapor in a
process referred to as a selective catalytic reaction (SCR). This process gives
the special SCR catalyst its name.

The control of the SCR system is masterminded by BMW's powerful engine
management computer. A nitric oxide sensor downstream of the SCR catalyst
provides feedback on the concentration of NOX in the exhaust emissions.

Due to packaging limitations in certain vehicles, the position and location of
the AdBlue tank may be varied from one vehicle model to the other. In the BMW
335d, the active and passive tank are at the rear end of the car, while in the
BMW X5 xDrive35d, the active tank is housed in the front right section of the
engine compartment, and the passive tank is under-floor next to the
transmission.

BMW's competence in diesel technology:

A story of success since 1983.

The performance and fuel economy offered by new BMW Advanced Diesel with
BluePerformance is a further example of the exceptional potential this engine
concept has to offer. In recent years BMW has worked more thoroughly and
consistently than any other manufacturer worldwide to promote and further the
development of its EfficientDynamics strategy. As a result, BMW has
consistently enhanced the benefits and attractiveness of diesel technology,
increasing engine output (performance), while reducing fuel consumption and
emissions.

Through their unique motoring refinement and smoothness - a feature which was
thought to be impossible with a diesel engine - BMW's diesel engines stand out
among the competition, setting the industry standard for diesel engine
technology today.

The story of success of BMW's diesel engines is characterized by numerous
milestones in technical development, dating back to 1983. Back then BMW
presented the first inline-six diesel in the history of the company, with
maximum output of 85 kW/115 hp and peak torque of 210 Newton-metres/155 lb-ft.

The BMW 524td that featured this engine was acknowledged as the fastest diesel
of its time and was the last BMW diesel model to be sold in the US.

In the years to come BMW's engine development specialists enhanced a wide range
of innovations, ensuring their alignment with series production standards,
increasing power and performance, reducing fuel consumption and emissions in
the process. In 1987, for example, BMW introduced DDE Digital Diesel
Electronics followed three years later by BMW's first diesel engine with an
oxidation catalyst.

BMW diesel engines:

Making a unique contribution to The Ultimate Driving Machine.

Right from the start BMW's engine development specialists recognized the
potential of the diesel in enhancing motoring efficiency. They focused on the
unique performance characteristics offered by the diesel in order to provide a
new concept of The Ultimate Driving Machine. Above all, the development
specialists used the performance of the diesel engine to develop superior
torque from low engine speeds.

As a result, the BMW diesel was soon able to offer its unique sporting
character - in everyday driving situations, as well as on the race track.
Indeed, it was this performance and reliability which made a BMW 320d the
superior winner of the 24 Hours of Nürburgring as early as in 1998.

In the same year BMW presented its first diesel engine with direct fuel
injection ensuring even greater spontaneity in the development of power. In the
process, the precise dosage of fuel helped to reduce fuel consumption and
optimize combustion in the interest of even greater smoothness and refinement.
Ultimately, given these qualities, the BMW diesel was appropriately prepared
for the luxury performance class, with the first V8 diesel engine featuring
direct fuel injection, which made its debut in the BMW 7 Series luxury sedan in
1999.

Milestones in progress:

Common-rail direct fuel injection, Variable Twin Turbo Technology,
maintenance-free diesel particulates filter, BluePerformance.

In the years that followed, BMW made significant - perhaps revolutionary -
progress in the areas of injection technology and diesel turbocharging: As
early as 2001, the second generation of common-rail fuel injection pumped fuel
into the combustion chambers at a pressure of up to 1,600 bar. In 2004, the BMW
535d became the first car to feature an inline-six diesel with Variable Twin
Turbo Technology.

BMW also introduced the second generation of the diesel particulates filter now
featured as standard in all of the diesel models from Germany's premium
manufacturer. The exhaust gas-cleaning unit is positioned directly on the
exhaust manifold itself in order to ensure optimum efficiency very quickly and
smoothly. The particulates filter does not require any maintenance and
regenerates itself by incinerating the diesel particles. This filtering
function is performed at all engine speeds and under all loads, without any
reduction of engine power or increase in fuel consumption.

BMW's current range comprises no less than seven diesel engines, three
four-cylinder models, three six-cylinder models and a V8. Both the six- and
four-cylinder engines have aluminum crankcases helping to significantly reduce
the weight of these engines. A traditional handicap of the diesel engine, which
adds weight due to the use of a cast iron crankcase (a much heavier material
than aluminum) has nearly been phased out completely. The reduction of weight
enhances the car's agility and, as a result, the sporting character of BMW's
diesel models.

Comparing the first six-cylinder BMW diesels from 1983 with the most powerful
diesel engines of today, one can easily appreciate the progress made. Consider
the following facts and figures:

Maximum output of the inline-six engine is up 135 percent, maximum torque is up
an even more impressive 170 percent. And despite this immense increase in
power and muscle, average fuel consumption of the 3.0-liter engine featuring
Variable Twin Turbo Technology is 20 percent lower than diesel engines of
1983. At the same time, exhaust emissions have been reduced dramatically,
thanks to several new technologies. Indeed, a BMW diesel in the 2008 model
year generates only 1 percent of the particulate emissions originally contained
in the exhaust gas of a 1983 diesel model.

The world's most sporting inline-six diesel.

Ready for the USA.

Despite these impressive facts and figures, BMW is continuing to upgrade the
diesel engine to an even higher standard, and BMW Advanced Diesel with
BluePerformance marks the next stage of development. This innovative technology
now also fulfills US market demands in terms of power, performance, running
smoothness, efficiency and emission limits.

Both the 335d and the X5 xDrive35d will be launched in all 50 US states in the
fall of 2008. Pricing will be announced closer to launch time.