Not sure if it'll work, but if you have factory alarm, stay with it... Go to the website I listed before and see if the unit looks the same. It tells you how to program it as well. As for the remote, I don't know if they will include the chip... There was another thread in regards to this topic. Do a search under alarm and see what comes up. Go to page 9 on this forum... FRANK3 had a similar question question..
I bought the remote and chip from BAVAUTO.COM myself, very expensive... I don't have this car anymore. I upgraded to a 97 540i