Intel And BMW Enter Comprehensive Partnership

Agreement Includes Technology, Co-marketing and Motorsports Sponsorship

MUNICH, Germany, Dec. 15, 2005 – Intel Corporation and the BMW Group today announced a comprehensive partnership that includes technology, co-marketing and Intel’s sponsorship of the BMW Sauber F1 Team. As part of this agreement, Intel technology will be deployed throughout the BMW Group and its worldwide dealer network, and Intel will become “Official Corporate Partner” of the BMW Sauber F1 Team. BMW purchased the Sauber team in June 2005.

Under the multi-year agreement and long-term technology partnership, Intel will support BMW in standardizing the IT infrastructure in the worldwide BMW Group data centers and in providing more than 3,000 dealers worldwide with innovative IT solutions. To support the expanding mobility of its staff, the BMW Group will also convert its corporate notebooks to Intel® Centrino® mobile technology-based systems and significantly increase the use of Intel-based PDAs within the company.

The two companies have also agreed to develop an industry specification that would allow for seamless integration of third-party devices (including phones and portable music players) into BMW vehicles.

“This comprehensive agreement brings together two of the most admired and innovative brands in the world,” said Eric Kim, Intel senior vice president and chief marketing officer. “Intel’s technology and BMW’s prowess in the automotive sector are a powerful combination. Intel and BMW intend to collaborate heavily on the IT technology and marketing side as our brands are very synergistic. With Intel as Official Corporate Partner of the BMW Sauber F1 Team, the Intel brand will reach hundreds of millions of passionate fans worldwide each year – fans who appreciate the critical role that technology plays in Formula One. Intel will infuse the BMW Sauber F1 Team with its technology – technology that we believe will support the team’s performance.”

Prof. Dr. Burkhard Göschel, BMW Group board member for purchasing and development, noted: “Like the BMW Group, Intel also sets the highest standards of performance, innovation and quality for its products. For both companies, technological leadership is a fundamental goal. Our methods of systematically turning ideas into innovative products will be excellently supported and complemented by Intel’s innovative technology and highly efficient solutions. This partnership stands to benefit our IT, our customers and our Formula One team.”

“Formula One,” added BMW Motorsport Director Prof. Dr. Mario Theissen, “is a high-tech discipline. It demands the control and coordination of hundreds of parameters simultaneously and the precise execution of every step. Cutting-edge technology is a crucial success factor, and BMW has accepted the challenge. We are delighted that a strong partner such as Intel has done likewise in collaboration with us.”

The BMW Sauber F1 Team and its new partners will present the new team in Valencia, Spain from Jan. 16 to 17.

Intel and Centrino are trademarks or registered trademark of Intel Corporation or its subsidiaries in the United States and other countries.

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