BMW Group business continues to develop positively

+++ Product and market initiative continues +++ Aiming at increased sales for
all brands in 2005 +++

Munich. Against the background of the successful development of the company in
the 2004 financial year, Helmut Panke, Chairman of the Board of Management of
BMW AG, speaking at this year's Annual General Meeting of the company, shone
the spotlight on the fruits of the product and market initiative. "We have not
only become larger, but also - and, in particular - stronger. We have gained
quality", stated Panke in his speech to the shareholders. "The BMW Group is now
reaping the benefits of expansion planned carefully and pursued consistently
over the years." At the same time, Panke drew attention to the company's
ongoing measures to continue its successful course: "We are continuing the BMW
Group's product and market initiative. At the same time, we are expanding our
production network. In parallel we are using the financial strength of the
Company to give our shareholders an even greater share in the current success
of the BMW Group", said Panke. "And we are strong enough to follow up all these
objectives simultaneously and equivalently."

Two new model series
As already announced, the BMW Group will be continuing the expansion of its
vehicle range by adding two new and independent model series. The Group will
thus open up opportunities to increase sales volume and profits in the future
by taking advantage of the increasingly differentiated development of the
various segments of the international automobile markets. The two new models
should be ready for launch from 2008 on.

Substantial investments in the production network
At the same time, the BMW Group, by investing extensively in its production
network, is creating the necessary capacities for future increased sales. On 13
May, the new BMW Leipzig plant will be officially opened; initial investments
here total 1.3 billion euros. In addition, over 100 million pounds sterling
will be pouring into the MINI plant in Oxford between now and 2007. Above and
beyond this, the company has continuously expanded and modernised its existing
plants in recent years:

"Since 2001, we have invested more than euro 6.7 billion in our plants
worldwide. More than euro 4.0 billion hereof has gone into the expansion of our
existing plants in Germany alone" stated Panke. "We thus have - additionally to
Leipzig - invested more than three times the amount in our other facilities in
Germany."

Dividend increase
In the light of the high level of profitability and the expectation that 2005
will also progress successfully, the Board of Management and the Supervisory
Board propose an increased dividend at the Annual General Meeting. Subject to
approval, the unappropriated profit available for distribution in BMW AG of
euro 419 million (2003: euro 392 million) will be used to pay a dividend of
euro 0.62 for each common stock share (2003: euro 0.58), 6.9% higher than in
the previous year, and a dividend of euro 0.64 for each preferred stock share
(2003: euro 0.60), 6.7% higher than in the previous year.

Share buy-back proposed
In addition, the Board of Management and the Supervisory Board of BMW AG
propose a resolution at the Annual General Meeting authorising the buy-back of
up to 10% of the Company's share capital. The aim of this measure is to reduce
the company's share capital by withdrawing the shares from circulation.

This is commensurate with the sustainable ability to generate profits from
operations. The positive development of cash flows over the past years has
enabled the BMW Group to accumulate a substantial level of cash funds and to
achieve a solid equity ratio. Cash flow will continue to grow dynamically over
the coming years.

2004 - new records for sales volume, revenues and earnings
The BMW Group continued the successful course of previous years in 2004.
Despite adverse global economic conditions, the Group achieved new highs for
car sales volume, revenues and earnings. As a result, 2004 has been the most
successful year to date in the Group's history.

The BMW Group delivered a total of 1,208,732 cars in 2004, an increase of 9.4%
compared to the previous year (2003: 1,104,916 cars).
The Group profit from ordinary activities, at euro 3,554 million, surpassed the
previous year's figure by 10.9% (2003: euro 3,205 million). The net profit grew
by 14.1% to euro 2,222 million and therefore also reached a new high (2003:
euro 1,947 million). Earnings per share were euro 3.30 (2003: euro 2.89) per
share of common stock and euro 3.32 (2003: euro 2.91) per share of preferred
stock. Despite the currency impact, revenues in 2004, at euro 44,335 million,
were 6.8% higher than in the previous year (2003: euro 41,525 million). The
return on sales at a group level thus improved by 0.3 percentage points to 8.0%
(2003: 7.7%).

Successful start to 2005 despite difficult market conditions
The BMW Group has made a successful start to 2005 despite difficult market
conditions. BMW, MINI and Rolls-Royce brand car sales rose during the first
quarter 2005 by 8.2% to 292,207 units, the highest level ever achieved by the
Group in a first quarter (first quarter 2004: 269,973 units). At euro 10,357
million, group revenues during the first three months of 2005 were down by 4.1%
(first quarter 2004: euro 10,805 million). This reduction was due primarily to
model life-cycle factors in the Automobiles segment and to the weakness of the
US dollar against the euro.

The reported profit was affected adversely by external factors during the first
quarter 2005. In particular, significantly higher raw material prices, currency
factors and increased competitive pressure all had a negative impact. However,
sales volume growth and continuous efficiency improvement measures within the
enterprise enabled the BMW Group to compensate these effects to a large extent.
Against this background, the BMW Group was able to generate a profit before tax
of euro 812 million (-4.6% / first quarter 2004: euro 851 million).

The net profit of euro 519 million was almost at the same high level achieved
in the same quarter last year (-0.8% / first quarter 2004: euro 523 million).
Cash flow continued to grow dynamically, rising by 12.9% to euro 1,294 million
(first quarter 2004: euro 1,146 million).

The positive development in sales also continued in April 2005. With 111,285
automobiles delivered, car sales were 9.7% up on the figure for the same period
last year (101,417). In the year up to and including April, the volume of
vehicles sold by BMW Group increased by 8.6% to 403,521 (prev.yr.: 371,417).

The BMW Group therefore aims to achieve new car sales volume highs yet again
with all three brands in 2005.

Some adverse factors will arise in 2005 as a result of a combination of
increased market competition, the effect of the US dollar exchange rate and an
above-average increase in the price of important raw materials. Despite these
adverse factors, the BMW Group aims for 2005 to achieve approximately the high
earnings level of 2004.

* * *
Helmut Panke's complete speech is available under www.bmwgroup.com/ir.

For questions please contact:

Corporate Communications

Eckhard Wannieck, Finance Communications
Telephone: +49 (0)89 / 382 - 24118, Fax: +49 (0)89 / 382 - 24418

Marc Hassinger, Business and Finance Communications
Telephone: +49 (0)89 / 382 - 23362, Fax: +49 (0)89 / 382 - 24418

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