As far as I know, all 6 cylinder engines in E36 guise (including the 320i) had VANOS on the intake camshaft only. I've never heard of a E36 320i engine without VANOS.
VANOS is BMW's version of variable valve timing. Other car companies market similar technologies under labels like VTEC (Honda) and VVTI (Toyota). All this technology does basically is to open or close the intake / exhaust valves earlier or later. Benefits = more power, more torque, lower emissions, better fuel economy, improved engine refinement at low engine speeds.
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