BMW Breaks Ground on New Whitby Parts Distribution Centre. $12 Million Facility Opens This Fall.

Whitby,Ontario...BMW Group Canada held an official groundbreaking ceremony
today for a new national Parts Distribution Centre (PDC) in Whitby. The
facility being built on Tricont Avenue, 2.5 kilometers from BMW Group's
Canadian headquarters will total 183,000 sq. ft., at a total investment of $12
million Canadian. It will replace the current 58,000 sq. ft. warehouse located
at the BMW head office on Champlain Court.

"This new facility is a testament to the tremendous growth of the BMW, MINI and
BMW Motorrad brands in Canada", stated Lindsay Duffield, President and CEO, BMW
Group Canada. "The added capacity will ensure that we continue to provide our
owners the Ultimate Customer Experience by providing our retail network with
efficient parts distribution".

Scheduled to open on November 1st, 2005, the new Whitby PDC will be the primary
parts supply warehouse for all BMW, MINI and BMW Motorrad Retailers east of
Manitoba, and a back up for all Retailers west of Manitoba. Western Canadian
Retailers will continue to be supplied by BMW Group's Richmond, British
Columbia PDC.

Situated on a 10.7 acre site at the eastern end of Tricont Avenue, the Whitby
PDC has been designed to facilitate an additional 60,000 sq, ft. of expansion
when necessary. The building is being built to BMW specifications in an
agreement between the Tricont Avenue Limited Partnership, a consortium of
Panattoni National Development Group and local investor Paul Cooper of Sylvan
Land and Building Corporation. The building contractor is the Belrock Group
of Companies, with Torplan Consultants Incorporated providing architectural
design.

Initially, the Whitby PDC will operate from 6:00 am to 11:00 pm, Monday through
Friday, employing 30 BMW Group Canada Associates, and will use state-of-the-art
carousel systems, a three level mezzanine structure, and high-rise racking
systems. From an initial inventory over 43,000 different parts valued at over
$23 million Canadian, approximately 3,000 lines items on 150 separate orders
will be shipped every day, ensuring before 9:00 am next day service to every
retailer in Canada. A first pass fill rate of over 95% for any part for all
BMW, MINI and Motorrad products will be achieved.

Totally paper free, the facility will operate with an on-line radio-frequency
(RF), Retailer interactive process. The new Whitby PDC will receive a full sea
freight container, an emergency air freight shipment, and numerous locally
supplied shipments every day.

BMW Group Canada, based in Whitby, Ontario, is a wholly-owned subsidiary of BMW
AG and is responsible for the distribution of BMW luxury performance
automobiles, Sports Activity Vehicles, Motorcycles, and MINI. BMW Group
Financial Services Canada is a division of BMW Group Canada and offers retail
financing and leasing programs on new and pre-owned BMW and MINI automobiles,
as well as retail financing for new and pre-owned BMW Motorcycles. A total
network of 36 BMW automobile retail centres, 18 BMW motorcycle retailers, and
20 MINI retailers represents the BMW Group across the country.

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