2000 BMW 323i SPORT WAGON: SLEEK, SOPHISTICATED, PRACTICAL

Woodcliff Lake, New Jersey, April 19, 2000... Popular in Europe for the past
two decades, compact sport wagons are a new and growing American market
segment. Sport wagons aren't about hauling the ubiquitous 4-foot-by-8-foot
sheet of plywood home from the lumberyard. They are about offering people easy
access to more versatile cargo space in a car with the crisp performance and
handling of a sports sedan. In many ways, sport wagons are for those driving
enthusiasts who truly want it all.

Over the last five years, the sport wagon market has more than doubled. The
BMW 323i sport wagon is a perfect fit in this segment. Available in the
previous two iterations of the 3 Series elsewhere in the world, the third
generation sport wagon meets the special needs of the U.S. market better than
its predecessors. It provides greatly increased seating and cargo space and,
with its 2.5-liter, in-line six-cylinder engine, it offers a perfect
combination of performance and affordability previously not available.

ABOVE ALL ELSE, THE SPORT WAGON IS A BMW 3 SERIES

BMWs have traditionally been praised for the special way they drive. Auto
journalists and owners talk about a unique "BMW feel." It seems that no matter
what size or model, all BMWs respond to their driver in a similar predictable,
precise, confidence-inspiring way. They have an "all-of-a-piece" feel that many
other carmakers have tried, unsuccessfully, to emulate.

The 323i sport wagon is no exception. Slightly longer (+0.3 inches) and lower
(-0.2 inches), it features handling that is almost identical to the 323i sedan.
With standard 16-inch and optional 17-inch tires, it puts even more rubber on
the pavement than the four-door. Its slightly stiffer suspension, to deal with
extra weight (a manual-transmission-equipped sport wagon is 198 pounds heavier
than a similarly equipped 323i sedan; 193 pounds heavier with an automatic
transmission) and varying cargo loads, adds to its nimbleness.

BMW's rack-and-pinion, variable-assist steering system also contributes to the
sport wagon's outstanding handling. In its February 1999 issue, Automobile
magazine described the 3 Series' steering as having "silky precision and the
right amount of feedback."

The 323i sport wagon is powered by a turbine-smooth 170-horsepower, 2.5-liter,
in-line six-cylinder engine. "BMW is legendary for building in-line sixes that
rev cleanly through to tomorrow, and sound simply symphonic in doing so,"
observed Motor Trend in its March 1999 issue. The engine's double-VANOS system
(VANOS = VAriable NOckenwellen Steuerung = variable camshaft control, or
variable valve timing) continually adjusts valve timing on both overhead
camshafts, optimizing power as well as fuel efficiency.

The two available transmissions perfectly complement the sport wagon's
personality. The crisp-shifting five-speed manual transmission, with a clutch
pedal requiring very little effort, is sure to impress traditional driving
enthusiasts. The five-speed, dual-mode STEPTRONIC transmission meets the
practical needs of those who prefer the convenience of an automatic
transmission. However, as you might expect from BMW, by moving the shift lever
into the sport mode, shifts occur at higher engine speeds or the driver can
determine those points by pushing the lever forward (upshift) or backward
(downshift).

Larger brakes, ventilated front and rear, and a higher final drive ratio for
manual transmission-equipped sport wagons (3.46:1 for the sport wagon, 3.07:1
for the sedan) are provided to offset the wagon's higher weight.

The sport wagon's spacious and comfortable interior is as elegant as the E46 3
Series sedans and coupes. Standard leatherette or optional rich Montana leather
upholstery is accented with either high-gloss or genuine Myrtle wood trim. At
night the console and central control area are bathed in warm orange ambiance
lighting, which makes locating controls easy.

A HIGHLY VERSATILE CARGO AREA

The sport wagon makes it easy to accommodate varying amounts of cargo and
passengers. Standard 1/3 - 2/3 split, fold-down rear seats offer maximum
versatility. When the rear seats and center armrest are up, three adults fit
comfortably, thanks to the E46 3 Series' increased rear legroom. An individual
headrest is provided for each rear-seat passenger. When the narrow seat is
folded down, there is plenty of room for two rear-seat passengers and added
cargo. The fold-down center armrest gives rear-seat passengers access to a
compartment with dual cup holders and additional storage space. A ski sack is
optional.

With the rear seats up, the sport wagon offers 26 cubic feet of cargo space,
about 2.5 times that of the 323i sedan. Fold the rear seats down and the cargo
space almost doubles to 48 cubic feet. The standard space-saver spare tire
allows for another 2 cubic feet of under-floor storage. A full-size spare is
optional, although that, of course, reduces the under-floor storage area.

Two lights, mounted in the C-pillars, illuminate the cargo area and a handy
12-volt power plug is easily accessible to run accessories or tools. A standard
cargo net, incorporated into the retractable cargo area cover, keeps items and
pets from entering the passenger compartment. The net, which clips into hooks
in the roof lining, works with the rear seats either folded or upright.

The tailgate and rear window open separately, providing low and wide access to
the spacious cargo area. An extended rear diffuser helps keep dirt from
accumulating on the rear window and the tailgate handle. The rear window
wiper/washer system is standard equipment.

Standard black roof bars add to the sport wagon's carrying capacity and
versatility.

A SPORT WAGON WITH A DISTINCT ADVANTAGE: BMW SAFETY

The new 323i sport wagon comes with standard safety features that prompted the
respected German car magazine auto motor und sport to conclude after conducting
independent crash tests of the BMW E46 3 Series, "Occupant protection in the
new 3 Series is at such a high standard that only marginal improvements are
conceivable."
Those features include:
* An ultra-rigid, energy-absorbing body structure
* Interlocking side doors for enhanced side-impact resistance
* A two-section, energy-absorbing steering column
* Height-adjustable front safety belts with automatic tensioners and force
limiters
* Dual front-impact airbag Supplemental Restraint System (SRS) with not only a
dual-threshold deployment system, but also "smart" technology two-stage
deployment - further enhancing the adaptation of restraint-system deployment to
actual conditions
* BMW's unique Head Protection System for front-seat occupants
* Side-impact airbags for front-seat occupants
* Head restraints and 3-point safety belts at all seating positions
* Battery Safety Terminal - in case of a severe impact, a tiny pyrotechnic
charge severs the high-voltage connection between the battery and the starter
* Automatic fuel cut-off triggered by airbag deployment
* Child safety rear-door locks
* Child-seat automatic safety-belt locking device and restraint tether anchors
* Crash sensor that automatically turns on the hazard lights and interior
lights and unlocks the doors

BMW has always believed that true automotive safety has an active component in
addition to passive measures. In other words, a BMW is built to avoid an
accident as well as protect its occupants if a crash occurs. Active safety
begins with an educated driver. BMW offers a wide range of driver safety
training programs for new and experienced drivers at its $12.5-million BMW
Performance Center in Spartanburg, South Carolina, adjacent to the BMW
Manufacturing plant where M roadsters and coupes, Z3 roadsters and coupes and
the X5 sports activity vehicles are built.

To help avoid an accident or dangerous situation, the 323i sport wagon comes
equipped with Anti-lock Braking System (ABS - in 1986, BMW was the first
manufacturer to make ABS standard across its full range of U.S. models), the
advanced All Season Traction (AST) traction-control system (in 1997 BMW offered
AST on all its U.S. models, including the Z3 roadsters), which, unlike many
competitors' systems, is functional throughout the full speed range of the car,
and the industry-leading Dynamic Stability Control (DSC) system. BMW introduced
DSC in the U.S. market in 1995 in the 750iL and 850Ci and is the first
manufacturer to offer a driver-enhancement system with the sophistication of
DSC on such a wide range of models, including the Z3 roadster 2.3 and the Z3
roadster 2.8 - the only roadsters in this market to offer such a system. The
only exceptions in the BMW model range are the ultra-high performance M
roadster and M coupe.

Through monitors that sense unstable driving conditions such as skids,
understeer and oversteer, DSC automatically initiates appropriate corrective
responses, depending on the situation, including reducing engine torque,
speeding up the engine, applying individual brakes, speeding up the outside
rear wheel or modulating braking.

PRACTICALITY AND EXCLUSIVITY: A PERSONALIZED SPORT WAGON

Customers may personalize their sport wagon through one of three option
packages: a Premium Package that places an emphasis on luxurious amenities, the
Sport Package that makes the very competent wagon even more fun to drive and a
Sport-Premium package that combines the elements of both options into an
impressive "best-of-both-worlds" choice.

Other stand-alone options help make the sport wagon a car for all seasons and
all reasons. Park Distance Control (PDC) uses ultrasonic sensors in the rear
bumper and in-cabin acoustic warnings to alert the driver to unseen
obstructions when backing up. A ski sack, two-stage heated front seats, halogen
free-form foglights with break-resistant covers, heated windshield-washer jets
and side mirrors appeal to skiers. Automatic leveling xenon low-beam headlights
produce even brighter, more daylight-like illumination than BMW's standard
Free-Form low beams, and have longer bulb life as well.

The 323i is an exciting addition to the fast-growing sport wagon market
segment: the pure, uncompromising essence of the BMW 3 Series.

Available for download are highlights, standard and optional features,
specifications and pricing for the BMW 3 Series sport wagon 2000. Photo
images are also available.

BMW IN AMERICA
BMW entered the U.S. market in 1975. Since then, the company has grown to
include marketing, sales and financial service organizations in the United
States; a South Carolina manufacturing operation; a design firm in California;
a technology office in Palo Alto and various other operations throughout the
country. BMW is represented in the U.S. through a network of more than 340
car, 300 Sports Activity Vehicle and 160 motorcycle retailers. BMW US Holding
Corp., the Group's headquarters for North, Central and South America, is
located in Woodcliff Lake, New Jersey.
Information about BMW products is available to consumers via the World Wide Web
on the BMW homepage. The address is: http://www.bmwusa.com.