The New BMW X5

The New BMW X5: A New Look and a Host of Technological Advances
* World innovation: xDrive - new intelligent all-wheel-drive technology for
increased road grip, agility and safety
* New 315 horsepower VALVETRONIC V8 engine mated to a 6-speed STEPTRONIC
automatic transmission resulting in improved performance, economy and driving
pleasure in the X5 4.4i
* A new 6-speed manual transmission for the X5 3.0i
* New design: a refinement of the now famous BMW SAV look

Woodcliff Lake, NJ, July 22, 2003... When the X5 debuted in 1999, it left no
doubt that a vehicle with true go-anywhere capability could also deliver BMW
levels of performance, luxury, safety and style. The X5 delivered in spades.
Four years after its launch, the world's first Sports Activity Vehicle still
enjoys enormous popularity. To ensure that this popularity continues, the
engineers and designers worked together to devise a thoroughly improved driving
experience, which gave rise to a number of technical innovations and a bold new
look.

The main highlights of this new SAV include the new intelligent all-wheel drive
system - xDrive, a more powerful V8 engine, new transmissions and the
modernization of central design elements. All this means that the X5 will
remain the perfect vehicle for the enthusiast driver, who wishes to combine the
excellent handling and drive characteristics typical of BMW with a high seating
position and the ability to master a wide range of driving situations,
including off-road.

A new V8 engine and two new six-speed transmissions - improved performance,
economy and driving pleasure

The new BMW 4.4-liter V8 engine with VALVETRONIC valve control, Double VANOS
and fully variable intake system has already set new standards for refinement
and performance in the new BMW 7 Series. This engine, adapted to meet the
requirements of a Sports Activity Vehicle, will now power the X5 4.4i. The
4.4-liter V8 generates 315 horsepower and accelerates from 0 to 60 mph in under
7 seconds. The new X5 4.4i is equipped with the new six-speed STEPTRONIC
automatic transmission, with six perfectly spaced gear ratios to ensure that
there is always plenty of power on tap, while providing maximum efficiency.

The X5 3.0i will, of course, continue with its 3.0-liter, 225 horsepower,
in-line six-cylinder engine. In traditional BMW fashion, those who prefer to
shift for themselves will find a manual transmission as standard equipment.
For 2004, this is upgraded to a six-speed manual.

xDrive: A world innovation in all-wheel drive systems

In order to make the most of the new powertrain updates, BMW's newest all-wheel
drive system helps to ensure optimum performance in all driving situations. The
xDrive intelligent all-wheel-drive system is a completely new design, and it
sets new standards among all-wheel drive vehicles for road holding and agility.
The xDrive system performs stepless and variable distribution of drive forces
between the front and rear wheels at an unprecedented speed.

xDrive reacts faster than other systems because it is able to think further in
advance. It not only makes use of the information obtained from the wheel
sensors, which signal when any of the wheels are spinning, but also data
collected from Dynamic Stability Control (DSC) system sensors. Yaw rate, the
information regarding rotational movement of the vehicle itself, and the
steering wheel position both supply important data concerning the current
situation. This enables xDrive to distribute drive power ideally and at any
given moment between the front and rear wheels, for instance during cornering,
thereby significantly minimizing under- or oversteer.

In addition to the clear increase in agility and driving enjoyment, xDrive also
provides great safety benefits. As a result of its fast reaction time, the new
system provides greatly improved road holding characteristics. Whether the
driving surface is rough or smooth, it only takes a few milliseconds once
friction is lost between the wheel and the road surface for the drive forces to
be redistributed to the wheels that still have traction. The electronically
controlled multi-disk clutch loses no time and reacts immediately. Thanks to
xDrive, starting off on a slippery iced surface or climbing steep uphill slopes
proves to be a simple exercise for the new X5.

Pronounced design elements sharpen the profile

The revised technical features of the X5 also provided the designers with a
good reason to further improve the vehicle's visual appearance. This has
resulted in a certain sharpening of the X5's character, making its enormous
technical performance discreetly visible to the more sharp-eyed among us, with
typical BMW understatement.

The front of the car has been completely revised right up to the A-pillar. The
character lines in the hood are wider and higher and meet the double kidney
grille (a typical BMW design). The kidney-shaped air inlets have also been
redesigned; they have been enlarged and as a result they lend the X5 increased
presence. Xenon low and high beam headlamps, standard in the X5 4.4i and
optional for the X5 3.0i, will provide outstanding road illumination. The dual
headlights have been given more pronounced external contours, which means that
along with the more rounded indicator lamps, they better match the new
appearance of the BMW model range. As with some other recent BMW designs, the
four round headlights are more pronounced thanks to the illuminated rings.

The front skirt section also receives a more pronounced design. Its air inlets
are larger and divided in the center, representing a continuation of the
character lines from the hood. At the rear, the new transparent tail light
lenses harmonize perfectly with the fresh appearance of the new BMW X5.

Safety - a top priority

As far as safety is concerned, the new X5 again scores extra points, profiting
from the extensive revision. The new xDrive all-wheel drive system has raised
active safety to a new level, offering the driver an extra measure of security
in virtually every driving situation. The X5 has successfully proven its
passive safety qualities in one of the most stringent crash tests in the world.
The BMW Sports Activity Vehicle was the first so-called "Large Off-Roader" to
be awarded a score of five stars in the Euro NCAP Test. It is also rated as a
"Best Pick" by the Insurance Institute for Highway Safety in its 40 mph offset
crash test.
For those who use the special performance features of the X5 for towing, there
is a further unique safety feature - the trailer stabilization control of the
new X5, which prevents dangerous rocking movements. Additional sensors that are
able to recognize potentially dangerous pendulum motions are included with the
DSC system, which can apply braking forces to help return the trailer to safe
motion.

The new BMW X5 will be premiered in September 2003 at the Frankfurt Auto Show.
The first vehicles will be shipped out to customers only a few weeks later -
beginning in mid-October.

BMW Group In America
BMW of North America has been present in the United States since 1975. Since
then, the BMW Group in the United States has grown to include marketing, sales
and financial service organizations for the BMW and MINI brands and Rolls-Royce
Motor Cars; DesignworksUSA, an industrial design firm in California; a
technology office in Silicon Valley and various other operations throughout the
country. BMW Manufacturing Corp. in South Carolina is part of BMW Group's
global manufacturing network and is the exclusive manufacturing plant for all
Z4 roadster and X5 Sports Activity Vehicles. The BMW Group sales organization
is represented in the U.S. through networks of 340 BMW car, 327 BMW Sports
Activity Vehicle, 148 BMW Motorcycle retailers, and 70 MINI dealers. BMW (US)
Holding Corp., the BMW Group's sales headquarters for North, Central and South
America, is located in Woodcliff Lake, New Jersey.

Information about BMW Group products is available to consumers via the Internet
at http://www.bmwusa.com http://www.bmwmotorradusa.com and
http://www.miniusa.com