BMW Group opens International Purchasing Office for Central and Eastern Europe

Procurement markets to be developed from Hungary

Budapest / Munich. On 1 August 2007, the BMW Group opened an International
Purchasing Office in Budapest. This is the first time that the procurement
markets of Central and Eastern Europe will be more accessible for the BMW Group
through the company's on-site presence. One of the main aims of the purchasing
office will be to identify local companies with the potential to become
innovative suppliers of the BMW Group in Central and Eastern Europe.

The new purchasing office is part of BMW Group's localised procurement
strategy. With its presence in Central and Eastern Europe, the company is
emphasizing the region's performance in high technology.

Over the last year, the BMW Group has purchased supplier parts from Central and
Eastern Europe for approximately € 2.3 billion. This is about 10% of the
procurement volume for production components worldwide and shows an increase of
around 25% compared to 2005.

As a supply market, Hungary plays an important role in the purchasing and
production strategy of the BMW Group. In 2006 approximately one third of the
region's purchase volume came from Hungary. The purchase volume from Hungary
has grown considerably in the last six years, especially since Hungary joined
the EU in 2004. As a result of the changed taxation and customs regulations,
the improved transport infrastructure and the growing number of high-tech
production facilities in the country, the purchase volume grew by 54% to € 720
million between 2004 and 2006.

Hungary was chosen as the location because there was already an established
supplier landscape in the country. In addition, the traffic connections between
Hungary and the other East European countries are already well developed. A
wide range of parts - from cables to leading technologies such as the
Auto-Start-Stop function available in the new BMW 1 Series - are currently
being purchased from Hungary, but Hungary still has great potential for
increasing supply to the BMW Group.

Bernhard Horst will be the General Manager of the office in Hungary, and for
the moment six employees will be managing the region from Hungary. "The BMW
Group integrates suppliers into the Product Evolution Process at an early stage
and keeps a constant eye on quality assurance. This is why we need to be
geographically close to our partners at their production plants in Central and
Eastern Europe", Horst comments.

The purchasing office will carry out tasks in connection with market analyses,
supplier proposals and supplier qualification. The team will be responsible for
Hungary, Russia, Ukraine, Estonia, Lithuania, Latvia, Poland, the Czech
Republic, Slovakia, Romania, Slovenia and Croatia.