August XX, 2004

Customer Name
Address
City, State Zip

Re: Your 200X BMW M3 Coupe/Convertible

VIN:

Dear Valued M Customer,

We wrote to you in March 2003 regarding the engine in your M car. At that time BMW was
investigating the cause of premature failure in certain engines. The investigation concluded the
problem was due to contamination of the engine lubricating system during assembly in combination
with unfavorable tolerances in the engine oil pump. BMW conducted a service action to remedy this
condition, but your vehicle was not affected. Nonetheless, BMW extended the warranty on your
vehicle for all internal mechanical engine components that are lubricated by engine oil for a period of 6
years or 100,000 miles, whichever comes first.

Our ongoing quality testing revealed that the connecting rod bearings installed in your vehicle were
not manufactured to BMW quality standards. As a result, the connecting rod bearings are susceptible
to overheating and subsequent premature failure if the vehicle is operated at higher engine speeds
over an extended timeframe.

BMW will conduct a service action to address this issue. The service action will consist of replacing
the connecting rod bearings with new ones of an improved design. In addition, the engine control
module will be programmed with the latest software.

Please contact your authorized BMW center to schedule a service appointment to have this service
action carried out. Your vehicle can still be driven with no immediate need to have the repairs carried
out, however, we ask that you not leave this issue unattended. The service action will take
approximately two working days to complete, however, the actual time will vary according to center
scheduling. BMW will cover all necessary repair costs related to this action as well as provide you
with alternate transportation, if necessary.

After the service action is performed on your M car, a 1,200 mile break-in period must be observed
and engine speed should not exceed 5,500 rpm. Please see your Owner’s Manual for more
information on the break-in procedure.

We sincerely apologize for any inconvenience this matter has caused you. If you have any questions
or need further assistance, please contact your authorized BMW center or BMW Customer Relations
toll free at 1-800-831-1117.

We wish you many safe and thrilling miles in your M car.

Sincerely,

A.E. Harris
Vice President
Aftersales