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E30 only.
It was essentially the same engine that was in the first (e30) M3 but was produced for the Italian market to meet a lower tax threshold on cars that were under 2-litres. It's basically just a shorter stroke S14 motor.
The next generation M3 went to the S50 6 cylinder lump whilst the same S42 engine from the E30 carried over into the 4 cylinder E36's.
Just googled the 320iS, Did that engine go in to later cars or E30 only?
That engine made similar power to the first M3..
Remember just a few years ago E30 weren't worth that much.