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BMW X3 to be assembled in Thailand for local market as of 2006

Expansion of local manufacture of BMW 3, 5, and 7 Series with BMW X3 at BMW Rayong Plant/Thailand

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BMW Group

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Munich. The BMW Group will expand its local production in Rayong/Thailand with
the assembly of the BMW X3 as of January 2006. Adding the X3 into the
production line, BMW will manufacture in total four models in Thailand for the
local market. Up to now BMW has produced in Rayong the 3, 5, and 7 Series in
the so-called CKD-process (Completely Knocked Down). Following the CKD
procedure, BMW plants assemble cars on location out of imported parts kits,
adding locally produced parts. BMW pursues this strategy above all in markets
which, through high import duties, create barriers to the importation of
completely built-up cars, thus preventing any greater penetration of the
marketplace. The customer delivery of the X3 for the Thai market is scheduled
for February 2006.

Since the start of the operation in 2000, BMW Group's investment in Rayong
plant is now at over 45 million Euro. Meanwhile 200 employees are working in
the Rayong plant.

The X3 will be the first non-saloon BMW model built in Thailand. The expansion
of the local production in Thailand supports the product and market initiative
of the BMW Group in Asia. The target is to enhance sales figures in Asian
markets to annually 150.000 BMW, MINI and Rolls-Royce automobiles until 2008.
In 2004 the BMW Group sold 95.482 automobiles in Asia.

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