Text of the letter sent by BMW to original owners of cars with the M60 Engine.

[Letterhead of BMW of North America, Inc.]

September, 1995

Dear Valued Customer:

BMW is committed to delivering the ultimate in product satisfaction to its customers. In a recent independent survey of product satisfaction BMW tied for first place, providing a testament to that commitment.

We have become aware of incidents of premature wear in some of our V8 engines, resulting from a chemical reaction with the cylinder wall coating caused by fuels with unusually high sulfur content provided to retailers by some refineries. To protect the investment of the potentially affected customers, we extended the warranty of their vehicles by 2 years or 50,000 miles, for a total of 6 years or 100,000 miles on all internal mechanical engine components lubricated by engine oil. We also offered to perform an engine adjustment to maximize resistance against such premature wear.

This letter is to notify you that the V8 engine in your vehicle was adjusted during production to maximize resistance against such wear. However, we recognize that differences in warranty coverage during a model year may be a disadvantage at the time of trade-in. Therefore, BMW will provide you with the identical warranty coverage extension.

Attached is a copy of the warranty statement for your records. Kindly ensure you keep this document with your warranty information. This warranty is transferable to any subsequent purchaser of your car.

It is very important that every aspect of your ownership experience be as pleasurable and rewarding as the driving experience our cars provide. We hope this warranty benefit will further enhance your satisfaction. Please call us toll free at 1-800-516-8500, Monday through Friday from 9AM to 5PM EDT, if you have any questions.

At BMW, we are totally committed to the highest standards of product excellence, responsive performance, dependable service, driving safety and value. BMW is determined to maintain a level of automotive and service excellence that exceeds your expectations now and in the future

/S/ Vic Doolan
Victor DoolanPresident