Global Partnership with BMW

Burmah Castrol PLC 22 November 1999 BURMAH CASTROL ANNOUNCES GLOBAL PARTNERSHIP WITH BMW Burmah Castrol plc, the international specialised lubricants and chemicals group, today announces that it has entered into a major partnership with BMW Group. The agreement comprises a long-term global partnership between BMW Group and Castrol, the world leading lubricants brand which this year celebrates its centenary. The partnership is one of the most significant technical, commercial and marketing agreements ever entered into by Castrol and covers six major elements: * Castrol will become BMW Group's strategic lubricants partner working in the area of R&D and leading to the joint development of the next generation of lubrication products. These will be designed to offer enhanced performance and support BMW Group's new engine development and manufacturing processes. * Castrol will become the recommended lubricant for BMW cars and motorcycles, Rover, Land Rover, Mini and MG. Most of these marques - which accounted for sales of approximately 1.2 million vehicles in 1998 - will be filled with Castrol as they leave the production line. Thereafter, BMW Group will recommend Castrol in service literature, driver handbooks, marketing communications, and prominently on vehicle engines. * BMW Group will out-source its lubricants business to Castrol. As such, the BMW Group will recommend that Castrol products are used in their approximately 3,500 dealerships worldwide. In addition, Castrol will source and market BMW branded lubricants. * Castrol Industrial will become BMW Group's partner in the provision of advanced industry products and services to all BMW Group production plants, leading to the joint development of advanced technical fluid management solutions. * Castrol will collaborate with BMW Group and their dealers in supporting after sales service with the aim of enhancing service efficiency and improving customer benefits. * Castrol has reconfirmed its commitment to Formula One by partnering the BMW WilliamsF1 Team and other BMW motorsports activities. Castrol will provide technical assistance on the race track and in test programmes, and will supply all lubricants products to the BMW WilliamsF1 team. In return, it will receive significant branding and marketing rights. BMW Group expects to derive significant business advantages from the agreement in the form of bringing R&D benefits to customers more quickly and increasing the efficiency of manufacturing through fluids management and the application of new production techniques. In return, Castrol will benefit from significantly increased sales volumes, as well as substantial brand promotion opportunities worldwide, supporting its existing £110 million annual marketing spend. Both BMW Group and Castrol will also benefit from the considerable technical and R&D opportunities that will arise from the partnership. Mike Dearden, executive director of Burmah Castrol and chief executive of Castrol, commented: 'This is an association of two of the world's most powerful automotive brands. The BMW values of performance, quality, technology and exclusivity perfectly complement Castrol's image. Castrol's position as a world-class brand is assured as we enter the next century.' 'Our two organisations rely on very similar values of performance, quality, technology and innovation,' said Dr Henrich Heitmann, member of the Board of BMW Group, Sales and Marketing. 'Already Castrol and BMW work together around the world in many ways. This new collaboration can only further help to deliver mutual benefits to both our organisations. BMW needs technical partners of the highest quality. Castrol has the experience and technology to assist us to improve our vehicles, develop more efficient production techniques and work with our dealers to improve customer benefits.' For further information, please contact: James Alexander, 01793 452006 Corporate Affairs Director Burmah Castrol plc NOTES TO EDITORS Background on Burmah Castrol Burmah Castrol businesses market specialised lubricant and chemical products and services on a worldwide basis. The group has a turnover close to £3 billion and operating profits of almost £300 million. It has over 150 subsidiaries operating in some 50 countries and employs some 20,000 people. Burmah Castrol is based around a series of international businesses, each focused on the specific requirements of its own market place but sharing common characteristics. Four of the group's businesses trade under the Castrol brand name and the remaining businesses operate in speciality chemicals. Background on BMW Since its founding in 1916 as an aircraft engine factory in Munich, the production of the first BMW motorcycle in 1923 and the first BMW car in 1928, BMW has grown to become one of the few brand names instantly recognisable the world over. Together with the brands Rover Cars, Land Rover, Mini and MG, the BMW Group plays an active role in all major segments of all key automotive markets around the globe. Last year was the most successful ever for the company, which now employs 120,000 people, produces 1.2 million cars and more than 60,000 motorcycles a year and generates sales in excess of £20 billion annually.

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