From 1996 to 1999, the company produced the 2.5-liter boxer Porsche M96.20 engine, which was mounted in the rear of the 986 on the basic modifications of the original Boxster convertible. Because of the subpar cylinder block casting, the engines of the early years had numerous issues.

M96-line engines: M96.20, M96.22, and M96.26.
Specifications
| Production years | 1996-1999 |
| Displacement, cc | 2480 |
| Fuel system | distributed injection |
| Power output, hp | 204 |
| Torque output, Nm | 245 |
| Cylinder block | aluminum H6 |
| Block head | aluminum 24v |
| Cylinder bore, mm | 85.5 |
| Piston stroke, mm | 72 |
| Compression ratio | 11.0 |
| Features | no |
| Hydraulic lifters | yes |
| Timing drive | chain |
| Phase regulator | no |
| Turbocharging | no |
| Recommended engine oil | 5W-40 |
| Engine oil capacity, liter | 8.3 |
| Fuel type | petrol |
| Euro standards | EURO 3 |
| Fuel consumption, L/100 km (for Porsche Boxster 1998) — city — highway — combined |
14.3 7.1 9.7 |
| Engine lifespan, km | ~200 000 |
| Weight, kg | 172 |
The engine was installed on:
- Porsche Boxster 1 (986) in 1996 – 1999.
Disadvantages of the Porsche M96.20 engine
Due to subpar casting, the sleeves in the first-year units shifted and cracked;
The engine requires a lot of lubrication, and it is not unusual to turn the liners;
The intermediate shaft bearing in this motor is also severely problematic;
A timing chain drive is a very small resource;
A water pump and constantly leaking crankshaft oil seals are additional weaknesses.
