THE ALL-NEW BMW 3 SERIES SPORTS WAGON

Dynamic, Elegant, Practical

Woodcliff Lake, NJ - April 19, 2005... The all-new BMW 3 Series Sports Wagon
will make its public debut at the Frankfurt Motor Show in September 2005. With
an exceptional harmony of elegance and athleticism, the Sports Wagon offers
flexibility and practicality as well. Available in the US beginning in October
2005, the newest BMW Sports Wagon will continue the highly successful
tradition of combining more versatile cargo space with the performance and
handling of a sports sedan.

This latest generation sports wagon will initially be available in the U.S. as
a 325xi model. Its xDrive all-wheel drive system endows it with remarkable
traction and agility. The all-new 3 Series Sports Wagon family will expand in
2006 with the introduction of a rear wheel drive version.

Efficient and sporting
Like the all-new 325i Sedan, the Sports Wagon will be powered by BMW's new,
advanced N52 3.0 liter 6-cylinder engine. This dynamic powerplant retains the
unique smoothness and sound character of BMW's inline 6-cylinder format while
offering more power, greater torque, even more refined delivery of power, and
new technology. This includes magnesium/aluminum composite engine
construction, and BMW's patented Valvetronic variable valve lift system, which
replaces the conventional throttle for more efficient engine breathing and
improved responsiveness. The 325i Sports Wagon is equipped with a new,
standard six-speed manual gearbox ; an optional six-speed STEPTRONIC automatic
transmission is available.

Unique and sophisticated design
For the first time, the BMW 3 Series Sports Wagon has been developed as an
entirely different and unique car compared to the Sedan. The new Sports Wagon
is largely identical to the Sedan from the front all the way to the A-pillar;
the rear seat area and luggage compartment blend harmoniously with the overall
style of the car's sporting, almost coupe-like silhouette. One distinctive
design element is the side window area. The roofline tapers down softly and
smoothly to the inclined tailgate, while the shoulder line moves up slightly,
the window areas appear small and compact, as in a coupe.

More room than its predecessor
While the new 325xi Sports Wagon maintains the BMW heritage in both styling and
performance - powerful, sporting, compact - it is equally impressive in its
space and roominess. Length (+1.65"), width (+3.07"), height (+0.35"), and
wheelbase (+1.38") are all increased compared to the previous generation Sports
Wagon, providing front and rear occupants with additional space and comfort on
the road. The split-folding rear seats and large cargo area offer a high
degree of flexibility and utility.

Innovative equipment for even greater practical value
The 325xi Sports Wagon is provided with a number of innovative features that
not only enhance everyday driving qualities, but the practical benefits of
this unique model as well. For example, the luggage compartment cover ensures
privacy and automatically rises together with the separately opening rear
window in order to facilitate loading. Like the all-new 3 Series Sedans, the
Sports Wagon comes with run-flat tires and a Flat Tire Monitor. The lack of a
spare tire not only reduces the weight of the car but increases effective cargo
capacity, with an additional storage box beneath the floor of the luggage
compartment.

The luggage compartment floor section is available with two reversing
surfaces, with tie-down points on one side to securely fasten heavy objects,
and a plastic cover on the other side to be placed on the interior panels and
surfaces in the luggage compartment to ensure efficient protection from dirt
and scratches. A water-tight folding box beneath the floor of the luggage
compartment enables the storing of items such as wet boots or other gear.

BMW's traditional attention to detail is evident with available sunshades on
the rear side windows which are unusal in this vehicle category, as are the
separate rear seat air vents.

Safety engineering and features: improving on a star performer
New Head Protection System (HPS). The first front-to-rear Head Protection
System to be offered in the 3 Series employs a curtain-type system, which takes
up less space in the headliner and can remain inflated for several seconds
after deployment, especially important in case of rollover.

New seat-mounted front side-impact airbags. The 3 Series is BMW's first to
employ seat-mounted side-impact airbags, as opposed to the door-mounted type of
the predecessor and other current Series. In their function of protecting
occupants' pelvis and thorax regions in side impacts, the seat-mounted airbags
are equal to the door-mounted type, but offer greater freedom for the interior
designers to achieve their functional and esthetic goals.

Automatic safety-belt tensioners and force limiters front and rear. Long
standard on BMW front safety belts, these features now enhance the outboard
rear belts' effectiveness as well.

New occupant-detection sensor. BMW has long employed a sophisticated electronic
control strategy for managing the deployment of airbags and safety-belt
tensioners. This approach to optimal effectiveness of safety systems now
becomes even more precise, thanks to a new sensing mat in the front passenger
seat. Called OC3, the mat is more highly sophisticated than its predecessor;
it measures the weight and analyzes the pressure distribution of the occupant
in order to distinguish between an adult and an infant in a child safety seat.
The front passenger's airbags will be deactivated, should the driver install a
forward-facing infant safety seat.

New features for protecting the driver's feet and knees. Two measures have been
taken to reduce the likelihood of injuries to the driver's feet and legs:
- The footrest is designed to crush under the force of the driver's left foot
in certain frontal impacts, so that the full impact force is not transmitted to
his or her foot and leg.
- The Mastervac (brake master cylinder) is mounted so that as the front end
deforms, it rotates, and with it the brake and clutch pedals. The pedals move
forward, canceling much of the force transfer to the driver's feet and legs if
they are on the pedals.

And for the first time, the 3 Series Sports Wagon offers LATCH attachments on
the front passenger's seat as well as the two outboard rear seats for optimum
safety with up to three children in the car.

Complete with Panorama Roof for a unique open-air experience
A wide range of creature comforts enhances the versatility of the 3 Series
Sports Wagon: the panorama roof, for example, virtually changes this practical
touring car into a convertible. Almost two feet longer than a conventional
sliding roof, the panorama roof lets in up to 60 per cent more fresh air.

Handling and agility - raising the standard again
The BMW 3 Series Sports Wagon is first and foremost a BMW 3 Series, combining a
comfortable ride with sports car handling. It is a very dynamic car on the
road, with that recognizable "BMW feel". Near 50-50 weight distribution,
all-wheel drive, a long wheelbase, and short body overhangs front and rear are
simply ideal for outstanding agility and driving safety under any
circumstances.

The double-pivot front suspension, newly developed for the 3 Series Sedan,
offers an optimum balance of driving dynamics and ride comfort in the Sports
Wagon as well. Utilizing extensive aluminum componentry, this innovative
suspension design offers superior tracking stability and low unsprung weight.
Class-leading agility and dynamic handling, in turn, are ensured by the
five-link rear axle in lightweight steel, ensuring precise wheel guidance as
well as excellent roll comfort.

Active Steering: Unique in this Class
The optional Active Steering system, a BMW first, offers two significant
benefits:
- Widely variable steering ratio; steering-wheel movements for parking
maneuvers, U-turns and sharp corners are greatly reduced for amazing agility.
With increasing vehicle speed, the steering becomes "slower," favoring
stability over agility.
- Vehicle stabilization; in critical situations, Active Steering can intervene
to preserve stability. For example, if the driver applies the brakes while
driving on a surface with uneven traction (one side of the road slick, the
other grippy), Active Steering can recognize the effects of varying traction
and steer to compensate.

Latest-Generation DSC
BMW's Dynamic Stability Control (DSC), featured here in its latest generation,
helps ensure extraordinary safety on the road. New for 2006 is a wide array
of important functions that make driving even safer and more pleasant. They are:
- Brake Fade Compensation. Brake fade occurs as the brakes heat up under hard
use; a given degree of deceleration requires more pressure on the brake pedal.
As brake temperature rises, Brake Fade Compensation automatically compensates
by increasing the hydraulic pressure relative to pedal force.
- Brake Stand-by. When the driver lifts off the accelerator pedal abruptly, DSC
recognizes that sharp braking may be about to occur and applies just enough
pressure in the brake system to snug up the pads against the rotors. Thus, the
short lag time which normally results from bringing the pad to the rotor is
dramatically decreased. The reduced stopping or deceleration distance could
reduce the likelihood of an accident.
- Brake Drying. Acting on input from the rain sensor (an element of the
standard rain-sensing windshield wipers), the pads are periodically brought up
to the rotors - just enough to eliminate any film of water between pads and
rotors, but not enough to cause a brake application.
- Comfort Stop. Especially with an automatic transmission, unless the driver
consciously eases off on the brake pedal, a jerk can occur as the vehicle comes
to a stop. Comfort Stop automatically eases off, making for smoother stops.
- Start-off Assistant. Keeps the vehicle from rolling backward when stopped
facing uphill. The driver can then start up without doing a ballet with the
clutch, brake and accelerator (manual transmission) or doesn't have to hold the
accelerator or brakes while stopped on a hill (automatic transmission).

With all these features, the MSRP of the 325xi Sports Wagon is $34,695. A
typically equipped Sports Wagon includes the Premium Package, an automatic
transmission, leather upholstery and metallic paint. At $39,345, a typically
equipped 2006 325xi Sports Wagon is only $200 more than its 2005 counterpart
and has substantially more equipment.