THE NEW BMW M5 - BMW UNVEILS THE FOURTH GENERATION OF THE QUINTESSENTIAL PERFORMANCE SEDAN

Woodcliff Lake, NJ, July 2, 2004...It has been 20 years since the launch of the
first BMW M5. After three generations, more the 35,000 sales and countless
attempts by competitors to emulate its performance and success, the BMW M5
still makes its position as the benchmark. Each successive generation has
extended the bounds of both performance and luxury. The last generation M5, the
most successful ever, significantly pushed the performance envelope with the
first V8 from BMW M, mated to a six-speed transmission.

The all-new fourth generation M5 pushes that envelope even further with the
first V10 engine to power a production sedan. The new V10 produces 507
horsepower and 383 lb-ft of torque by European measure. This new engine is
mated to a seven-speed SMG transmission. With this new powertrain the M5 offers
the best power-to-weight ratio in its class. In the tradition of BMW M, the
chassis has been engineered to keep up with the power while the exterior
treatment is subtle, yet distinctive.

First high-revving engine to be featured in a production sedan
This is the first application of a V10 engine in a regular production sedan, if
it's possible to call any product from BMW M "regular." It once again sets the
benchmark in its class. This engine was engineered to rev, with a redline of
8,250. With 25 percent more power than the previous M5's V8, this new engine
offers 100 horsepower per liter of displacement, pure race car territory. The
90o V10 is designed for maximum stiffness and minimum vibration.

The new V10 features double-VANOS variable valve timing. Each cylinder has its
own electronically controlled throttle butterfly. The new MS S65 engine
management system uses the most powerful processors currently approved for use
in automobiles. It has been designed specifically to deal with the V10's high
output and high revs as well as the comprehensive controls that are required.

Seven-speed SMG gearbox features Drivelogic
The driver of the new M5 is able to maximize the potential of the new V10
engine with a seven-speed SMG gearbox. Like other BMW SMG gearboxes shifts can
be made from either the lever on the center console or the paddles on the
steering wheel. Compared to the previous SMG, gear changes happen 20 percent
faster with this latest generation SMG, making for smooth, crisp shifts.

With Drivelogic, at the driver's disposal are eleven program options. This
enables the SMG's shift characteristics to be tailored to suit the driving
situation and the mood. Six of these programs can be selected in the sequential
manual gearbox mode (S mode). These programs adjust shifting speed and style
because, in the S mode, the driver does all the shifting. In the Drive (D mode)
the transmission shifts automatically, depending on which of the five programs
is selected, the driving situation, the road speed and the position of the
accelerator pedal.

Taken together the drivetrain of the new M5 provides truly awe inspiring
performance. From rest 60 miles per hour will be reached in well under five
seconds. The rush of acceleration never lets up until the electronically
limited top speed of 155 miles per hour. The top speed may be limited but with
the speedometer reaching all the way to 205 mph, the mind conjures intriguing
possibilities.

The perfect blend of ride comfort and agility
The M5 has long been known for handling that matches its performance, carefully
blended with impressive ride comfort. More than just a "tuned" 5 Series
suspension, the aluminum suspension on the M5 has been engineered to match its
performance. The suspension is mated to 19-inch wheels with performance tires.
Keeping power on the road is critical, so the M5 features the Variable M
differential lock. By constantly monitoring and comparing the speed of the rear
wheels, the Variable M differential lock can ensure that power gets to the
drive wheel with the most traction even in extreme driving situations. Its
benefits are particularly apparent when accelerating out of a corner.

The Dynamic Stability Control system in the M5 has been designed to suit its
performance. Of course, the DSC can be deactivated at the push of a button. The
M5's DSC also offers the choice of two driving dynamics programs. One allows
DSC to function the way it always has. At the touch of a button, the M Dynamic
Mode is engaged which lets DSC facilitate more spirited driving.

To ensure that this level of handling does not compromise ride quality, the new
M5 features Electronic Damping Control, with three program modes (comfort,
normal, sport). EDC constantly adjusts the suspension to suit the driving
conditions.

To complement its performance potential, the M5 is equipped with generously
sized high performance brakes with perforated compound brake discs. The
aluminum twin-piston brake calipers have been designed for minimum unsprung
weight and maximum stiffness. They will haul the new M5 to a stop from 62 mph
(100 km/h) in under 120 feet and from 124 mph (200 km/h) in just under 460 feet.

Styling is subtle but purposeful
In the tradition of BMW M, the exterior styling of the new M5 follows the "wolf
in sheep's clothing" philosophy. The casual observer may not, at first glance,
recognize the M5's performance potential. The less casual observer instantly
will. The modified front spoiler and rear apron are instant giveaways. So too
are the modified side sills. The wheel arches are more prominent in order to
house the generous wheel and tire package. Following BMW M's recent traditions,
the new M5 has more aerodynamic exterior mirrors, four tailpipes and exclusive
wheels. Similar to the latest M3, the M5 features exclusive gills incorporated
into the front fenders.

The exclusive leather interior features sports seats. Other styling touches,
from the instrument cluster to the center console and the steering wheel are
all unique to the M5. Even the optional head-up display is M-specific.

The all-new BMW M5 once again combines the comfort and amenities one expects of
a luxury sedan with the performance capability and driving experience that can
be provided by few cars of any type. For more details as well as images, please
go to the BMW PressClub at www.press.bmwgroup.com.

BMW Group In America
BMW of North America, LLC has been present in the United States since 1975.
ROLLS-ROYCE Motor Cars NA, LLC began distributing vehicles in 2003. The BMW
Group in the United States has grown to include marketing, sales, and financial
service organizations for the BMW brand, the MINI brand, and the ROLLS-ROYCE
brand of Motor Cars; DesignworksUSA, an industrial design firm in California; a
technology office in Silicon Valley and various other operations throughout the
country. BMW Manufacturing Co., LLC 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 passenger car centers,
327 BMW Sports Activity Vehicle centers, 148 BMW motorcycle retailers, 76 MINI
passenger car dealers, and 25 ROLLS-ROYCE Motor Car dealers. BMW (US) Holding
Corp., the BMW Group's sales headquarters for North, Central and South America,
is loca

ted in Woodcliff Lake, New Jersey.

Information about BMW Group products is available to consumers via the Internet
at:

www.bmwusa.com
www.bmwmotorradusa.com
www.miniusa.com
www.rolls-roycemotorcars.com

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Journalist note: Information about the BMW Group and its products is available
to journalists on-line at the BMW Group PressClub at the following address:
www.press.bmwgroup.com.

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