THE BMW X5 OFFERS A COMPLETELY NEW SENSE OF DRIVING

The BMW X5, an all-new vehicle shown for the first time in January, will be on
display at the 1999 New York International Auto Show at the Jacob K. Javits
Center. The show will be the first opportunity for many people to discover the
newest BMW, a vehicle which provides responsive power to all four wheels.
Developed to create a new market, the X5 establishes new standards in driving
dynamics and safety, while offering drivers a daily dose of exhilaration.
Featuring a unitized body, advanced suspension and innovative all-wheel-drive
technology, the X5 delivers BMW's inherent comfort, safety and performance on
any road. The world's first Sports Activity Vehicle will be built exclusively
at the BMW plant in Spartanburg, South Carolina and will be launched in the
market this November in the U.S. and in spring 2000 in Europe. Engine choices
will include both inline six-cylinder or V-8 powerplants and in keeping with
BMW's driver-oriented philosophy, manual transmissions will be offered in
addition to automat
ic transmissions.

A completely new type of BMW

The X5 is a completely new type of BMW, but is characterized by those
well-known features which are typical of the BMW experience. The spaciousness,
the responsive performance and the finish this vehicle offers are oriented to
the very highest standards for luxury-performance automobiles. In this sense,
and with respect to the materials used and their quality the X5 is worlds apart
from the utility vehicle character of many off-roaders.

The proportions alone demonstrate this is a completely new BMW model series:
With an overall length of 183.5 inches, the X5 is 6 inches shorter than a BMW 5
Series, but its width of 73.6 inches is slightly wider than a
7 Series. In combination with its height of 68.7 inches, the X5 offers ample
space, yet it can be maneuvered easily even in very tight conditions.

Outstanding Safety in Body Structure

In contrast to conventional four-wheel-drive vehicles, the BMW X5 does not use
a frame and is based instead on the unitized body which is common in today's
passenger cars. This offers decisive advantages especially for passive safety,
bearing in mind that up to now typical frame construction has prevented the
optimum energy absorption during a collision. The unitized X5 body is a
completely new development. In contrast to what was available in the past,
this unitized body is capable of taking up considerably more crash energy and
is thus on a comparable safety level to that of the BMW sedans. The airbags and
Head Protection System also correspond to what is available in all BMW sedans.

Unsurpassed BMW driving characteristics

The X5 driver can enjoy a BMW which offers a high degree of safety, agility and
comfort both on paved roads and on loose surfaces because its development was
clearly focused on excellent handling properties on all roads. In contrast to
conventional off-roaders, the X5 has a unitized body, independent suspension
and, thanks to the Dynamic Stability Control, the most advanced electronic
traction control system. As the X5 is meant to be used in a large variety of
conditions, Automatic Differential Braking and intelligent Hill Descent Control
were added to the DSC. Furthermore, the X5 is equipped with a high-performance
braking system which achieves deceleration values similar to the 7 Series
sedans.

The chassis: absolutely first-class

The thoroughbred character of the Sports Activity Vehicle is clearly defined by
the fundamental design of the X5. It is based on a unitized body and a chassis
with independent suspension. Unique among all-wheel-drive vehicles with high
ground clearance, the developers achieved the BMW-typical driving
characteristics, which would be impossible for any classical off-roader with
rigid axles and a ladder-type frame.

In principle, the chassis corresponds to the state of the art of the current
BMW model lines, augmented by the additional drive to the front wheels and
increased ground clearance. In this respect alone, the new BMW is different
from all conventional four-wheel-drive vehicles. The X5 possesses a newly
developed double-joint McPherson strut front suspension with an anti-roll bar
and gas pressure shock absorbers. As on the 7 Series, the wheels are steered by
forged steel suspension links. The axle kinematics are adapted to the demands
of the all-wheel-drive.

The integral rear axle is based on the same multi-link axle principle as in the
7 Series. Its kinematics and elastokinematics which are decisive for
directional control are thus identical with the those of the BMW flagship-an
important prerequisite for achieving the objective of exceptional on-road
behavior with this vehicle concept. To further reduce the unsprung masses, the
hubs, lower suspension links and the swingarms are made from aluminum. To
achieve excellent acoustic and vibration comfort, a suspension subframe
isolates the rear axle differential from the bodywork with dual elastic
support. In addition, large-volume rubber elements connect the suspension
subframe to the body.

Self-leveling with electronically-controlled air suspension units

The X5 with the V-8 engine comes standard with an electronically controlled
self-leveling suspension with full load-bearing air suspension elements at the
rear axle.

Driving a vehicle with air bellows suspension offers two advantages: regardless
of the loading condition, the height of the vehicle remains practically
unchanged, and at the same time the suspension comfort retains its excellent
characteristics. This is how it works: when the rear axle is subjected to a
load, the pressure in the suspension bellows increases automatically. The
suspension thus maintains a constant ratio between the loaded condition and the
spring rate of the suspension. Thus, the ride height of the vehicle is always
maintained, a factor which has a decisive influence on the quality of the ride
comfort.

Apart from this spontaneous adaptation, this system also reacts to asymmetrical
loading conditions and changes of loads while driving, these being always
dependent on the driving conditions. The electronic system, for example,
recognizes that the vehicle is negotiating winding roads and that leveling the
suspension would tilt the body unnecessarily, and therefore interrupts the
controlling operation.

In the self-leveling suspension of the X5, air springs replace the conventional
steel springs on the rear axle. To reduce the unsprung masses, the air spring
pistons located on the hubs are entirely made from light weight materials.
Damping is effected by separate gas pressure shock absorbers located behind the
air springs. An electric-motor driven compressor supplies the system with
compressed air. To recognize the height level of the body, two sensors measure
the deflections of the two rear axle swingarms.

To help make possible the X5's generously spaced luggage compartment, the
springs are supported on the hubs of the axle underneath the load floor. As a
result of this a larger area between the wheel arches is created. The shock
absorbers work between the swingarms and the body support.

All-wheel-drive: more traction, yet excellent road handling

The X5 has permanent all-wheel-drive which transmits the power to the rear axle
by 62 per cent and to the front wheels by 38 per cent in normal vehicle
operation. The advantages of this torque split are neutral handling, excellent
stability with changing gas pedal movements (power-on, power-off) and absence
of pulling on the steering wheel during acceleration.

The shaft establishing the connection to the right front wheel extends through
the oil sump. Among other things, this approach facilitated low mounting, a
low center of gravity and at the same time sufficient ground clearance. This is
advantageous for driving dynamics on the one hand, and on the other hand for
providing ample ground clearance on poor road conditions.

One important advantage for the X5 in everyday life, especially when completing
u-turns or maneuvering in tight multi-story parking garages is a decisively
smaller turning circle than for conventional off-roaders. The design provides
for the maximum steering angle because a bearing is flanged onto the right side
of the oil sump in order to enable the use of drive shafts of exactly the same
length. The advantage: identical angles in the constant-velocity joints and
thus steering which is free from drivetrain influence.

Because the X5 is not intended for extreme off-road operation, the X5 does not
feature the reduction gearbox found on many SUV trucks. This has the advantage
of a lower center of gravity combined with good ground clearance.

Dynamic Stability Control: a significant safety feature

The standard equipment of the X5 includes the most advanced stability control
system-Dynamic Stability Control (DSC)-available today. It integrates all
stability functions, such as Cornering Brake Control, Dynamic Brake Control and
Automatic Stability Control. In addition, DSC increases driving safety whenever
an abrupt maneuver is required to avoid an obstacle or whenever dangers
suddenly appear during cornering, especially on slippery roads. To this effect,
the system can brake each of the four vehicle wheels individually and, if
required, reduce the engine power. For safe transport on all types of roads,
DSC was complemented by two additional functions: automatic differential
locking and intelligent Hill Descent Control.

BMW high-performance brake system

With the new Dynamic Brake Control, a sure-footed, fast-reacting active safety
system is available to the X5 driver. This system increases the braking
pressure in an emergency stop and thus ensures the shortest possible braking
distance even when the pedal pressure is less than optimum.

The X5 is equipped with the newest generation of the antilock braking system
and in addition, with Cornering Brake Control, which makes optimum use of the
brakes on all four wheels possible, without risking the directional stability.
For example, when a driver brakes during fast cornering, the vehicle might move
slightly towards the inside of the curve, even when he only applies a light
pressure on the brake-a phenomenon which is commonly known as oversteering.
This effect is associated with the laws of physics and a consequence of the
increasing load on the front axle, and therefore independent of the drive
concept.

Cornering Brake Control receives signals from the four ABS sensors and
recognizes the transverse acceleration of the vehicle thus determining the fact
that the vehicle is cornering. When the brakes are applied, the build-up of the
braking pressure is controlled such that the braking pressure on the outside
front wheel is built up faster than on the inside wheels, thus counteracting
the inward tendency. At the same time, the rear axle is prevented from
overbraking, which goes to prove that the system has the effect of electronic
brake distribution when cornering.

Automatic Differential Brake replaces limited slip differentials

Automatic Differential Braking refers to an intelligent, fully automatic system
which performs the function of a limited slip differential. As complex as the
control mechanism itself may be, the way it works is simple: as soon as the
system recognizes wheelspin, the engine power is directed to the other wheels.

Depending upon the traction required, the ADB-X can access the brakes of each
wheel individually. On extremely icy roads the engine torque will be reduced in
order to prevent the brakes from overheating.

Hill Descent Control: security for steep downhill driving

HDC (Hill Descent Control) is an intelligent control system for driving
downhill on steep inclines. It helps insure a constant speed descent, for
example on particularly slippery slopes. Without any intervention required from
the driver, the X5 moves forward at a constant speed-a good walking pace-in a
similar way as a vehicle equipped with a reduction gearbox. This automatic
speed control works as an integral part of the Dynamic Stability Control with
individual brake initiation on all four wheels.

The HDC function is turned on and off with a separate switch beside the DSC
switch. It can be activated at any driving speed, however it will only become
effective below 31 mph. As soon as the vehicle speed falls below this mark
while the HDC is switched on, the X5 reduces the speed automatically with a
linear deceleration to approximately 6 mph and keeps this constant. The working
range of the HDC control lies between 3 and 6 mph and can be influenced by the
driver via the brake pedal and the accelerator. Should the driver accelerate
beyond the 6 mph limit, the HDC will go into a "stand-by"-mode.

Extensive equipment and extras

Both in terms of driving comfort and equipment, the Sports Activity Vehicle
remains true to what you are entitled to expect from a BMW. A sports package,
xenon headlights, the multi-functional steering wheel and rear compartment air
conditioning controls, as well as a premium audio system are only some of the
features available, just like the onboard navigation system, comfort seats and
rear and roof rack systems.

BMW IN NORTH AMERICA

BMW of North America, Inc. was established in 1975, when the company assumed
marketing and distribution responsibilities of BMW vehicles in the U.S. from a
private distributor. Since then, the company's North American operations have
grown to include marketing, sales and financial services organizations in the
United States and Canada; a South Carolina manufacturing operation; a design
firm in California; and various other operations throughout the U.S. and
Canada. BMW is represented in North America through a network of more than 375
automobile and 190 motorcycle retailers in the United States and Canada. BMW
(US) Holding Corp., the marque's North American headquarters, is located in
Woodcliff Lake, New Jersey.