BMW and WilliamsF1 Extend Partnership To The End of 2009

[tdc]

BMW and WilliamsF1 Extend Partnership To The End of 2009

Nürburgring, June 27, 2003 ... BMW and WilliamsF1 today announced an
extension of their existing partnership to contest the FIA Formula One World
Championship for the next five years until the end of the 2009 season. The
contract announcement comes 18 months ahead of the expiration date of the
partnership agreement that was scheduled for the end of the 2004 season.

The new agreement is distinct from the previous terms of engagement between
the two companies insofar as the new relationship will be characterized by an
increased degree of integration. This enhances the benefit of combining the
depth of resources offered by premium carmaker BMW with the niche expertise
of WilliamsF1, one of the most successful teams in Formula One history.

Dr. Burkhard Göschel is the board member of the BMW Group responsible for the
BMW Formula One Project. He explained, "We are very pleased to have placed
collaboration with WilliamsF1 on a sound and long-term basis. This new contract
envisages enhanced integration between the two partners. As an automobile
manufacturer, we have options that are simply not open to a racing team and we
need to join together in exploiting these possibilities. By the same token, this is
all about supporting the specialist expertise of one of the most successful teams
in the history of Formula One, harnessing that expertise and achieving perfect
integration. We are convinced that this alignment will lay the foundation stone
for the future success of this project."

BMW WilliamsF1 Team Principal Frank Williams reflected, "BMW (has) been an
extremely impressive and highly motivated engine partner to work with since
2000. I have every confidence that with the structure of this new agreement, we
will be able to draw from a deeper pool of BMW resource. When added together
with the technical competence and determination to win at WilliamsF1, I believe
that this relationship will yield significant dividends."

The commencement of the new partnership will coincide with upcoming multi-
million dollar investments in capital facilities, including a second new state-of-the-art
wind tunnel facility due to be operational in early 2004. Frank Williams
reflected, "I am delighted that the unprecedented level of investment at
WilliamsF1 will contribute to the success of an extended partnership between the
two companies. With this consolidation and stability in the program stretching
into the medium term, we now have an attractive platform from which to attract
further commercial backing."

BMW Motorsport Director Mario Theissen outlined how cooperation would
increase. He stated, "These contractual negotiations were protracted, but we
were happy to take the time that was necessary in order to clarify all the issues in
detail. As far as BMW was concerned, making comprehensive use of the know-
how of the company's expertise and extending that knowledge was a decisive
factor in entering Formula One. That's why we built our Munich Formula One
facility very close to our Engineering and Research Center (FIZ) in Munich. The
future will see similar networking between the Grove and Munich sites, with the
aim of generating synergy benefits and optimizing processes. This will be
achieved by integrated and continuous joint project management. This
groundwork was already laid in 2002. BMW will also contribute expertise in
engine development and construction within the scope of this expanded co-
operation. During the initial stage we will be focusing on joint development of
the drivetrain with gearbox. The team will also derive increased benefit from the
simulation and test experience of the Engineering and Research Center."

The first five-year contract between BMW and WilliamsF1 covers the years 2000
to 2004 inclusively. Signature of this contract was announced on September 8,
1997 at the Frankfurt Motor Show.

The BMW WilliamsF1 Team achieved a podium place in the very first Grand Prix
(Australia 2000). Ralf Schumacher headed the team's achievements in 2000,
claiming fifth place in the drivers' standings and in 2000 and 2001 the team took
third place in the Constructors' World Championship. In 2002, the team improved
its performance to finish as the second placed team. During the past three and a
half years, the BMW WilliamsF1 Team has celebrated six victories, achieved a
total of 29 podium places and 13 poles. The two cars have started on the first
row of the grid four times. At the half-way mark of the 2003 season, the team is
ranked third in the constructors' standings with 64 World Championship points.

BMW Group In America
BMW of North America has been present in the United States since 1975. Since
then, the BMW Group in the United States has grown to include marketing, sales
and financial service organizations for the BMW and MINI brands and Rolls-Royce
Motor Cars; DesignworksUSA, an industrial design firm in California; a technology
office in Silicon Valley and various other operations throughout the country.
BMW Manufacturing Corp. 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 car, 327 BMW Sports
Activity Vehicle, 148 BMW Motorcycle retailers, and 70 MINI dealers. BMW (US)
Holding Corp., the BMW Group's sales headquarters for North, Central and South
America, is located in Woodcliff Lake, New Jersey.

[Duckydos]

Awesome to hear. You can tell that it's a good partnership when they are renewing contracts with 18months left on the current one. JPM's and Ralf's contracts are good through the end of 2004, I wonder if both will stay with Williams BMW. Anyway, look foward to seeing the races on the tele

-Ducky

[esp1976]

This weekend is going to be s w e e t, friday qualifying 1st, and 2nd. I hope JPM stays with williams.

[esp1976]

Williams pulled ahead of Ferrari!