GREATER PERFORMANCE, GREATER SAFETY, GREATER COMFORT - THE NEW BMW 3 SERIES

Woodcliff Lake, NJ - October 26, 2004... Sport sedan enthusiasts everywhere
will soon have cause to celebrate an automotive landmark. Next spring the
all-new BMW 3 Series will make its world debut at the Geneva Motor Show,
followed by its North American debut at the New York Auto Show.

As with its predecessors, the fifth generation BMW 3 Series raises the sport
sedan benchmark - decisively and significantly. Continuing to improve a concept
that BMW pioneered more than forty years ago, the new 3 Series offers greater
performance, safety and security as well as greater comfort and convenience.

Groundbreaking six-cylinder with light-weight magnesium crankcase
The new 3 Series will enter the U.S. market in summer of 2005 with a choice of
two in-line 6-cylinder engines, continuing a 3 Series tradition. The all-new
3.0-liter unit in the 330i offers a significant increase in performance. It is
rated at 255-horsepower (SAE), a 30-horsepower increase over its predecessor.

In BMW's ongoing pursuit of weight reduction, this engine is the first in
large-scale series production to use magnesium which, compared to aluminum, is
30 percent lighter. Magnesium is used in the crankcase, the crankshaft bearings
and the cylinder head cover.

This engine is also the first six-cylinder to use BMW VALVETRONIC. With
infinitely variable valve lift in place of the traditional throttle butterfly,
this system improves both throttle response and fuel efficiency. Like previous
BMW engines which have incorporated VALVETRONIC, the gains are impressive. In
the case of the 330i, horsepower increases by 13%, while fuel consumption
decreases by 12%. This unique technology works in tandem with BMW's
double-VANOS variable valve timing for both intake and exhaust camshafts. The
new 330i will accelerate from 0 - 60 mph in approximately six seconds.

Six-speed transmissions on both models
Both models will be offered in the U.S. with a choice of a standard six-speed
manual transmission or optional six-speed STEPTRONIC automatic transmission.
The benefits of a six-speed manual in terms of acceleration, cruising comfort
and fuel efficiency have been demonstrated in the previous 330i. These same
benefits have also been proven on other BMWs which offer the new six-speed
STEPTRONIC automatic. Those benefits will now be available to all 3 Series
drivers.

Starting the engine at the touch of a button
The 3 Series is the latest BMW to feature the convenience of a start button.
After firing up the engine at the touch of a button, all other functions
operate seamlessly.

The standard for handling and agility is raised once again
Reflecting BMW's rich heritage, the new BMW 3 Series continues some long
standing traditions - engine mounted longitudinally up front, drive power to
the rear wheels and near perfect 50:50 balance of weight over the front and
rear wheels. These have contributed to the 3 Series well-earned reputation as
the best handling sports sedan on the market.

Several enhancements will ensure that this new 3 Series lives up to its
reputation. Like other BMWs, the new 3 Series gets a double-pivot front
suspension for improved responsiveness. The newly developed suspension is made
of aluminum to further improve responsiveness and comfort by reducing unsprung
weight.

A new five-link rear suspension contributes to the improvement in handling and
comfort. The new rear suspension is made of lightweight steel, which also
contributes to the overall reduction of unsprung weight.

Active Steering: unique in this segment
The new 3 Series becomes the first car in its class to offer anything
approaching the benefits of BMW's unique Active Steering. This stand-alone
option provides a more direct steering ratio at low speeds for greater
maneuverability and a progressively less direct ratio as vehicle speed
increases to improve high-speed stability. This solves the traditional
trade-off between agility, stability and comfort with non-active steering.

In the new 3 Series, BMW Active Steering has been enhanced to provide an
additional active safety benefit. Whenever the driver applies the brakes hard
on surfaces with varying frictional coefficients - such as intermittent mud,
ice or snow - Active Steering will intervene to help stabilize the vehicle even
more quickly and seamlessly.

Latest generation DSC offers additional benefits
BMW's latest Dynamic Stability Control (DSC) incorporates new features which
provide the driver with even more benefits. A new brake-drying feature can
improve braking in wet weather, detected using the rain sensor and/or wiper
activity, by gently rubbing the brake pads on the rotors to help keep the pad
surface dry. A new Brake Standby feature can reduce braking response time by
readying the brakes for application whenever the driver abruptly lifts off the
accelerator pedal. By anticipating a sudden stop, Brake Standby can shorten
stopping distances. The new Starting Assistant feature is designed to prevent
rollback when starting off on a grade without having to use the brake pedal or
handbrake.

All of these features will ensure that the BMW 3 Series will maintain its
leadership, not only in handling and responsiveness, but in active safety as
well.

The BMW 3 Series - the quintessential sport sedan
The design of the new 3 Series is at once bold, dynamic and elegant. Positioned
right in the epicenter of BMW's modern design spectrum, the 3 Series fits
comfortably between the sportiness of the Z4 and the elegance of the 7 Series.

Compared to the outgoing model, more generous exterior dimensions ensure even
greater spaciousness and comfort for all passengers. At 178.0 inches, the
length increases by 1.9 inches. The width at 71.5 inches increases by 3.1.
Vehicle height is 55.9 inches, an increase of 0.24. The wheelbase is 1.4 inches
longer at 108.7.

Body shell improvements: lighter, stiffer, safer
Not only is the body shell of the new 3 Series larger it is also designed for
greater stiffness, leading to improved comfort and safety. A new joint and
crossbar concept for the car's load-bearing structure increases body stiffness
by 25 percent without increasing the car's weight, thanks to intelligent
lightweight engineering through the use of more highly developed steel and
molding technologies.

The safest 3 Series ever, particularly in side impacts
The new 3 Series is designed to achieve the best results in the very demanding
EuroNCAP crash test. It is also one of the first cars in the world fully
prepared for the demanding U.S. side impact standards, as well as the
high-speed rear impact test.

The list of passive safety features includes intelligent front driver and
passenger airbags, hip/thorax side airbags and the BMW Head Protection System
in curtain form.

Proven technology for an extra measure of safety and security
Two-stage Adaptive Brakelights enlarge the brake light area in hard braking or
whenever ABS is activated. This brighter warning can help following drivers to
react more quickly. Runflat tires come standard. In the event of a puncture,
the driver can continue for up to nearly three hours at speeds up to 50 mph,
allowing him or her to get the tire repaired or replaced in a safe and secure
area by skilled personnel.

The new 3 Series will be available with optional Xenon Adaptive Headlights. The
previous BMW 3 Series was the first vehicle to offer these lights, which turn
slightly whenever the front wheels turn. Greater illumination around bends
improves visibility, particularly on winding roads.

Interior: Modern and purposeful
The new interior reflects the modern ambience seen in other recent BMW designs.
The interior is more spacious and more luxurious for drivers and passengers
alike. The driver is also offered an environment that is designed to enhance
the driving experience. As before, an onboard navigation system will be
available. In the new 3 Series the system will include BMW's iDrive control
system for convenient operation.

Get in and go without a key
The optional Comfort Access makes the conventional ignition key a thing of the
past. A uniquely coded transmitter, referred to as the ID Sensor, enables the
driver to enter the car with the ID Sensor in a pocket and start the engine by
pressing a button, without ever touching the ID Sensor. The ID Sensor, in
conjunction with Key Memory, sets the driver's preferences for power seat
position, mirrors, automatic climate control and, if equipped with optional
iDrive, the radio station presets.

Luxury class infotainment systems
The new 3 Series is able to take advantage of the full range of BMW's
information and entertainment features. The DVD-based onboard navigation system
provides quick and accurate route planning and destination information. The
standard AM/FM/CD/MP3 sound system can be upgraded to include the Logic7
surround sound system, as offered in the 7 Series. The listening experience can
be enhanced further with the availability of SIRIUS satellite radio. The
available Premium Package will include BMW Assist which provides emergency
calling and BMW Roadside Assistance. Subscribers may also take advantage of a
whole range of travel-related services.

The new BMW 3 Series will once again raise the sports sedan standard.

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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