BMW WilliamsF1 Team-Extended Contract & Qualifying 1 Euro GP

27 June 2003 


BMW and WilliamsF1 extend Partnership through to the end of 2009


Nürburgring. BMW and WilliamsF1 today announced an extension of their
existing partnership to contest the FIA Formula One World Championship for a
further five years until the end of the 2009 season. The contract
announcement comes 18 months ahead of the expiration of the existing
partnership agreement at 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 characterised by
an increased degree of integration. This enhances the benefit of combining
the depth of resource offered by premium car maker 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 have 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 multi-million
dollar investment in capital facilities coming on stream, 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 programme 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, "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 company¹s expertise and extending that knowledge was a
decisive factor in entering Formula One. That¹s 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 optimising
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 focussing
on joint development of the drive train 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 inclusive. Signature of this contract was announced on 8
September 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 team¹s achievements in 2000,
claiming fifth place in the drivers¹ standings and in 2000 and 2001 the team
took third place in the Constructors¹ 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 constructors¹ standings
with 64 World Championship points.

European Grand Prix  -  FIRST QUALIFYING                      27th June 2003

Weather: Dry, overcast, 24°C  Air,  27°C Track

Nurburgring (GER). The BMW WilliamsF1 Team drivers were fortunate today to
complete their qualifying laps in dry conditions. The rain started to fall
half-way through the session, severely hampering the runs of half of the
field. Juan Pablo Montoya and Ralf Schumacher achieved the 3rd and 4th best
times respectively.

Juan Pablo Montoya:    3rd
Chassis: FW25 06 
Best time: 1. 30,378min
"I am reasonably satisfied with my qualifying lap today, despite losing a
bit of time in the first corner. I turned in and my car just understeered. I
had suffered from some understeer during this morning¹s Free Practice too,
but apart from that it was quite good and I believe we should be pretty
strong for the weekend as we¹ve got a great car. With regards to the new
chicane, I must say that I preferred the old one as I think it was more
exciting. We seem to be able to pick up the pace here, and this is what
counts. We are aiming to be ahead of Ferrari and McLaren and I am confident
we¹ve got the equipment to do so."

Ralf Schumacher:    4th
Chassis: FW25 07  (Spare car FW 04)
Best time: 1.30,522min
"My flying lap was more or less all right and the car had quite a good
balance. I didn¹t really get  the last chicane right, which cost me some
fractions. However I believe we are facing a demanding weekend here as
McLaren seem to be very strong on this track. We still have a lot of work to
do in order to improve the car's set-up for tomorrow and the race. With
regards to the changes to the NGK corner, I must say I like it now more than
it was before."

Sam Michael (Chief Operations Engineer, WilliamsF1):
"It was a good Friday to start the weekend with. The improvements we brought
to our cars are working and we are looking forward to having a competitive
weekend. I am not too happy with some of the changes to the circuit as we
saw a lot of car damage this morning. Hopefully there will be improvements
for tomorrow."

Gerhard Berger (BMW Motorsport Director):
"Today¹s sessions showed that this track suits the Michelin tyres well.
However, we cannot take into consideration the times set when the rain had
started to fall. Both our drivers produced good laps and were almost
identical in time and they both can be pleased with their performances."

Current pictures are available for download at: www.press.bmw.com