Press Kit MY 2003: 745i and 745Li - Bold New Luxury-Car Concept Successfully Launched; Second Model Year Brings More New Innovations

Woodcliff Lake, New Jersey, October 15, 2002...A year ago, BMW launched a
dramatic new concept in luxury-performance automobiles. Not merely new design,
but new engineering and technology made The New 7 a bold statement about BMW's
present and future. No less august a source than Automotive Engineering
International wrote, in its March '02 issue, "With help from its suppliers, BMW
has produced a vehicle that blazes the engineering trail with innovations that
will influence passenger vehicles for years to come. The new BMW 7 Series was
selected by the readers and editors of AEI as Best Engineered Vehicle for 2002
because it points the way not only for luxury/performance sedans but also other
vehicle segments."

Indeed. The new 7 Series, while remaining true to BMW traditions and
philosophy, moved courageously into the future of luxury automobiles with new
solutions to esthetic sensibilities of our times and the challenges of
contemporary driving. It is a fascinating exercise in the application of
original thought to virtually every area of automotive concepts.

And though The New 7's debut was not devoid of controversy - bold new moves in
any area of human endeavor always generate debate - it has been widely
acclaimed by the general and automotive media, and heartily accepted by the
most important critics of all: customers. In the first ten months of '02, the
two new 7 Series models very significantly outsold the three-model line that
preceded them, with 18,348 examples delivered in the U.S. That's a dramatic 44%
increase over the same period of 2001.

For its second model year, the 7 Series continues in two models for the U.S.
market, both powered by the innovative Valvetronic V-8 engine: the 745i at
$69,195 including destination charge; and the long-wheelbase 745Li at $73,195.
(Both prices are a nominal $55 higher than in 2002.) These two 745 models offer
appealing new standard equipment and options, and more are to come later in the
model year. Also to be introduced somewhat later is the 760Li, an ultimate
expression of the 7 Series concept powered by an all-new V-12 engine and even
more lavishly equipped than the two V-8 models.

Changes for 2003:
Subtle evolution,
New standard equipment and options

One of the new concepts included in the Series is BMW's Advanced Head
Protection System II (AHPS II); this is an extension to the rear passenger
compartment of the inflatable tubular front head protection BMW pioneered in
1998. In 2002, AHPS II was included in an option with door-mounted rear
side-impact airbags; for '03, AHPS II is standard and the side-impact airbags
continue as optional.

As of January '01 production, the STEPTRONIC system of sport and manual
shifting for the 6-speed automatic transmission will become standard on all 7
Series models. The new STEPTRONIC system enables the driver to make up- and
downshifts at will.

A new option, offered at no extra cost, is run-flat tires. Mounted on
distinctive Multi-Spoke wheels, the run-flats are sized and speed-rated like
the standard equipment (245/50R-18 V-rated on 18 x 8.0 wheels), and allow
7 Series users confronted with a flat tire to continue on until reaching a safe
and convenient place to have the damaged tire repaired or replaced. This option
requires ordering the optional Tire Pressure Monitor, which directly measures
air pressure via a tiny transmitter in each tire and indicates loss of pressure
in the instrument cluster.

Another new option for '03 is Active Cruise Control, which employs a radar
sensor at the front of the vehicle to sense the speed of vehicles traveling
ahead and adjust the BMW driver's speed to maintain a safe following distance.
Newly optional for the 745Li only is the addition of Active Ventilation to the
optional multi-adjustable rear Comfort Seats.

As of March '03 production, a Sport Package will become available on all 7
Series models. Among the Sport Package's features will be 19-in. wheels and
tires in differentiated front/rear sizes (which for now remain a stand-alone
option), a firmer suspension calibration, sport seats, and a sport steering
wheel.

7 Series Concept:A new "design language" and novel approaches throughout

There are times when evolution is appropriate, and times when bolder steps are
taken. Indeed, evolution is most often the appropriate way to proceed in
developing of motor vehicles; almost by definition, revolution cannot occur
frequently.

The New 7 is clearly in the "revolutionary" category. Its utterly new look is
apparent enough at the first glance, but underneath and inside the innovative
design is one of the richest palettes of new ideas and new technology ever to
appear in a new BMW vehicle generation: Altogether, there are more than 60
significant improvements over the predecessor Series.

Not out of necessity is BMW taking this step; for the past four decades, the
marque has moved from strength to strength, and in recent years U.S. BMW sales
have been trending dramatically upward. (So far in '02, U.S. BMW sales are up
7.1%, following on a 12.5% increase in calendar 2001 over 2000.) Rather, BMW is
seizing the initiative of future-oriented leadership. The story of the new 7 is
one of a luxury-performance automobile that redefines luxury, performance,
design and technology - and in doing so, launches a new era of automotive
excellence.

The Look: Keyword is "presence"

During the tenure of the predecessor, the 1995-2001 7 Series, customers in
certain countries - notably North America and Asia - were telling BMW they
would like a 7 Series with more "presence" - a big BMW that looks bigger, more
prestigious, more impressive. And of course they wanted BMW to accomplish this
while retaining, indeed improving, the traditional BMW traits of strong
performance and active driving pleasure. This is just what the new 7 does.
"That," wrote European Car in February '02, "is the genius of BMW: To make cars
that drive exactly the way cars should, combining comfort and performance with
little compromise between the two."

Christopher Bangle is Director of Design at BMW AG: "The Board of Directors
requested that we exercise strong design leadership," says Bangle, who adds
that "To produce an excellent product and outstanding design," adds Bangle,
"you must believe in what you're doing. We believe strongly in this car."
Bangle and his design team set a progressive direction. "The dynamic is all
BMW. But the presence is new. The 'greenhouse' - the passenger cabin, that is -
is set back, making it clear that there is Power up front. The wheels are big,"
continues Bangle. In fact, for the U.S., the standard wheels and tires are
18-in., with 245/50 tires. Together with an inch-and-a-half greater height than
that of the predecessor, these underscore the new models' "presence."

See and be seen. At the front, the traditional BMW "kidney" grilles take on a
high, assertive position and look. The "eyes," also in the BMW tradition with
four round headlights, are set relatively low by virtue of carrying the turn
indicators (eyebrows) above them. They incorporate new Bi-xenon technology,
with high-intensity-discharge low and high beams. All four headlights are
outlined by light rings, which function as parking lights and illuminate at all
times the parking- or headlights are switched on. A high-intensity headlight
cleaning system is standard.

The windshield-wiper/washer system is important to safety and driving ease; BMW
engineers have devoted a lot of attention to it. The reversing of direction
that occurs each wiping cycle is now accomplished by an electronically
controlled reversing motor rather than the wiper linkage; this brings the wiper
right up to the driver's-side A-pillar at all vehicle and wiping speeds, and
with less noise and impact. The actual wiped area is up 10%, improving the
driver's field of vision in the rain; in their intermittent setting, the wipers
are rain-sensing. In their parked position, every three days or so the wipers
move, so that the rubber wiper blades do not get "set" into a distorted
position from being stationary. And the washer nozzles are now on the wiper
arms themselves, saving washer fluid by applying it right where it is needed.
The windshield itself is of the infrared-reflecting Climate Comfort type to
reduce solar heat in the cabin.

At the rear, the main taillight units are outboard, and incorporate
3-dimensional LEDs for their tail- and brake lights. Additional tail lamps and
the backup light are in a light band across the trunk lid. A "world first"
feature here is adaptive brake lights, which signal the intensity of the 7
Series driver's braking to following drivers:

* Under normal braking, the outboard and 3rd brake lights illuminate as usual.

* Under hard braking or when the ABS is activated, the taillights join the
brake lights (at the same lighting intensity as the brake lights) for a
significant increase in visibility of the brake lights.

* In case of burnout of certain exterior bulbs, a nearby bulb (one normally
used for a different function) is "commandeered" automatically until the
defective bulb is replaced. The Check Control monitor system alerts the driver
to the burned-out bulb.

With its general lack of decoration and no body-side moldings, The New 7 is
notable for purity of line. Overhangs - the distances from wheel centers to the
ends of the vehicle - are relatively compact, contributing to the substantial,
yet sporty look.

Under the hood: a brand-new engine with unique, patented technology
The New 7 doesn't merely look new; it is new, through and through.

Under the long aluminum hood, for example, is a brand-new engine that makes
dramatic strides in torque, power, accelerator response and efficiency. There
are new engineering refinements throughout, but two major new technologies are
the main driving force behind the engine's dramatically improved capabilities.
Both 745 models are powered by this new V-8 engine, which produces a very
impressive 325-horsepower from its 4.4 liters; this is a good 15% more than the
predecessor V-8. Equally remarkably, EPA-rated fuel economy is 18 mpg city / 26
mpg highway. And response to the accelerator pedal - one can no longer say
"throttle" - is markedly livelier, more spontaneous.

Valvetronic: revolutionary new "breathing" concept

Many contemporary automotive engines have variable valve timing, including all
of BMW's. BMW achieves variable valve timing by rotating the camshafts relative
to their driving sprockets. Some manufacturers also have systems that vary
valve lift, or the distance the valves open.

BMW's new Valvetronic system also varies lift - but to a far greater, and more
fundamental, degree than existing systems. Indeed, Valvetronic varies
intake-valve lift to such an extent that it assumes the function of the
traditional engine throttle; engine breathing is thus controlled entirely by
the valves, and the traditional throttle simply goes away. Thus we can no
longer call that right-hand pedal on the floor a "throttle pedal." We might as
well go back to the old term "accelerator pedal."

The Valvetronic mechanism sits atop the intake valves on both of the
V-8's cylinder banks. Each of the engine's 32 valves (4 valves per cylinder) is
actuated as the camshaft lobe deflects a finger-type rocker arm with hydraulic
clearance adjustment. On the intake side, however, there is an additional
element between the cam lobe and rocker arm, called an intermediate follower.
Upon contact by the camshaft lobe, this intermediate follower actuates the
rocker arm and, in turn, the valve. But the intermediate follower isn't merely
an extra piece between the camshaft and rocker arm. At its top, it is held in
place by another sort of cam lobe - not of a regular engine camshaft, but as
part of an eccentric shaft that can be rotated by a servomotor. This eccentric
shaft, whose commands come from the electronic engine management system in
response to the driver's accelerator-pedal movements, determines the
intermediate follower's pivot point.

The surface of the intermediate follower that transmits motion to the rocker
arm is so contoured that according to where its pivot point is positioned by
the eccentric shaft, the motion imparted by the camshaft lobe produces more or
less motion at the rocker arm, and hence more or less valve lift. Like many
ingenious developments, it's straightforward in principle, though someone had
to think it up in the first place. It was BMW engine engineers who thought it
up, and BMW has patented Valvetronic.

Particulars and refinements of the Valvetronic system follow.

* Intake valves assume function of throttle. The Valvetronic mechanism varies
valve lift in a major way: from 0.3 mm to 9.7 mm. Engine breathing - air
intake - is controlled by varying this lift. The driver's foot gives the
commands; the eccentric shaft turns to control the intermediate follower's
pivot point; valve lift varies accordingly. At minimum lift, the engine is
idling or decelerating; at maximum lift, it is producing full power.

* Greater efficiency. It may seem surprising that so fundamental an engine
component as a throttle (in BMW M engines, throttles) has a fundamental
drawback. But it does: As a throttle closes, it imposes a restriction that
incoming air has to snake around. This causes so-called "pumping losses," which
take an increasing portion of engine power as the engine is more lightly
loaded.

Eliminating the throttle offers a way to increase engine efficiency at
"low-load" operation, i.e. when driving gently. At full power, a throttle is
fully open and pumping losses are minimal. By eliminating the throttle(s) 1 and
letting the valves control the breathing, Valvetronic essentially eliminates
pumping losses. (Diesel engines do not have throttles; this is one of the
reasons why they achieve relatively high fuel efficiency.)

* More spontaneous engine response. In BMW M engines, an individual throttle
for each cylinder, positioned very close to the cylinder, improves engine
response by bringing atmospheric pressure right up to the cylinder. Valvetronic
goes a step further. When one drives the new 7, one cannot help but notice how
spontaneously and quickly the engine responds to the accelerator pedal.

* More power. High valve lift contributes to high power output; yet in a
traditional engine one cannot simply increase valve lift, as too-high lift
would detract from efficient and responsive operation at low speeds and light
loads.

* Refined engine operation. In light-load driving, operation is especially
smooth because of the relatively small valve lift of 0.5 to 2 millimeters.
Customers may notice this especially in the engine's ultra-smooth idling.

* Excellent cold starting. The small valve opening promotes highly effective
vaporization of fuel, even when the engine is started from cold.

* No mechanical throttle linkage. Current BMW engines have electronically
controlled throttles, so-called "drive-by-wire." With Valvetronic, the driver's
call for power is transmitted electronically to the eccentric shaft's electric
servo motor.

* Stepless variation of valve lift. Valve lift is varied continuously and
smoothly all the way from minimum to maximum lift.

* Lighting-fast system response. Clearly, variation of valve lift is
fundamental to the performance of a Valvetronic engine. The system can vary
lift all the way from minimum to maximum is just 300 milliseconds, or 0.3 sec.
To achieve this speedy response, BMW developed a dedicated Valvetronic
microprocessor, which networks with the 40-megahertz/32-bit primary engine
computer.

* Low friction, precision components. Every "rubbing point" in the Valvetronic
mechanism is not a rubbing (friction) point at all. Instead, low-friction
rollers transmit the motion: from cam lobe to intermediate follower,
intermediate follower to rocker arm, eccentric shaft to intermediate follower.
The follower itself is a precision casting, machined to virtual perfection. Its
"boomerang" contour - the working surface that actuates the rocker arm - is
machined to a tolerance of 8/1000ths of a millimeter. To ensure quiet
operation, zero valve clearance is maintained hydraulically.

Double VANOS: BMW's variable valve timing makes its contribution too

In recent years, BMW engines have benefited from VANOS - VAriable NOckenwellen
Steuerung, German for variable camshaft control or variable valve timing. The 7
Serie