The X5 3.0i is powered by BMW's classic 3.0-liter inline-6 engine, producing 225 horsepower. Standard equipment includes adjustable power front seats with driver's position memory electronically tagged to the key, remote keyless entry, power windows that can be opened with the key fob, cruise control, cabin-air filtration, a universal garage door transmitter, 17-inch alloy wheels and a tow-hitch receiver. For 2004, the standard manual transmission has been upgraded to a six-speed, while the leatherette (vinyl) upholstery remains.

The X5 4.4i adds BMW's powerful 4.4-liter V8 engine, which adds 33 horsepower this year for a total of 315, matched with a new six-speed automatic. The 4.4i is now almost as powerful as last year's 4.6is. The 4.4i also adds dual-zone climate control with rear-seat adjustments, leather upholstery, self-leveling air suspension and 18-inch wheels.

The new X5 4.8is is an ultra high-performance model that features a 4.8-liter V8 engine that produces 355-horsepower and 360 pounds-feet of torque, coupled with a six-speed Steptronic automatic transmission. It comes with 20-inch W-rated performance tires (275/40 front and 315/35 in the rear). Massive 14-inch front/12.8-inch rear disc brakes bring BMW's most potent SUV to a quick and sure-footed stop.

Both the X5 3.0i and 4.4i can be equipped with a long list of stand-alone-options, or any of four option packages. The moonroof, for example, can be ordered separately ($1,059), but it's also included in the Premium Package, which also adds auto-dim mirrors, adjustable rear seat backs, lumbar support, an onboard computer and the BMW Assist telematics package to the 4.4i ($2,500), plus leather to the 3.0i ($3,900). The Sport Package ($2,500 for the 3.0i, $1,600 for 4.4i) includes a firmer sport suspension, sport steering wheel, 18-inch alloy wheels (for the 3.0i), sport seats, black chrome exhaust and a titanium colored grilled. The Cold Weather Package ($750) includes heated front seats, ski bag and headlight washers. The Rear Climate package ($600 for the 3.0i, $400 for 4.4i) brings rear privacy glass, rear side-window blinds and rear climate control adjustment for the 3.0i. Popular stand alone options include a five-speed automatic transmission ($1,275) and the bi-Xenon headlamps ($800) for the X5 3.0i, and a premium stereo with 12 speakers, two subwoofers and digital signal processing ($1,200). A retractable load floor ($380) and satellite navigation ($1800) are extra-cost options on all X5 models. BMW Assist ($750) provides telematic collision notification, an SOS button, roadside assistance, locator and concierge services. An annual subscription ($240) must be paid after the first year.

All X5s come with full-time all-wheel drive and Dynamic Stability Control, which includes traction control, electronic brake proportioning, an electronic stability program, and Hill Descent Control.

Passive safety was a major development goal for the X5, which can be ordered with no fewer than eight airbags. Each front-seat occupant gets a front airbag, a side thorax airbag and a curtain-style head protection airbag. BMW's Head Protection System extends these curtains the full length of the cabin, protecting outside rear passengers as well. Rear-seat side impact airbags are optional ($385). Moreover, the X5's unit-body has been design for maximum energy dissipation in heavy impacts. According to BMW, it performed better than any vehicle ever tested by the Insurance Institute for Highway Safety (IIHS) in its 40-mph offset crash test, which simulates the most common type of high-speed highway crash. The IIHS has rated the X5 a "Best Pick" for safety.