BMW Group Establishes Sales Companies in Indonesia and the Philippines

Munich, Germany... On 29 January 2001, BMW established the sales company "PT
BMW Indonesia" in Jakarta (Indonesia); today, it established the sales company
"BMW Philippines Corp" in Manila (Philippines).

PT BMW Indonesia, as a sales subsidiary of the BMW Group, will be assuming
responsibility for the market in Indonesia as from 1 April 2001. "PT Astra
International" will continue to be responsible both for the import of BMW
vehicles and also the CKD production of BMW vehicles for the local market
started in 1976. Last year around 2,500 BMW vehicles were sold in Indonesia. At
the moment, around 28,000 BMW vehicles are registered.

BMW Philippines Corp will also be taking over responsibility as the BMW Group's
sales subsidiary for the local market from 1 April 2001 - the first Philippine
sales company for vehicles in the luxury performance segment. The new company
is a joint venture with the former importer José Alvarez (Asian Carmakers
Corporation), with the BMW Group now holding a majority share. BMW has also had
a CKD production plant here with a local partner since 1994. An average of
around 1000 BMW cars have been sold in recent years in the Philippine market.
This means that BMW is taking up a leading position in the exclusive segment.

Dr. Michael Ganal, the BMW AG's Board Member for Sales, stated: "These are two
further milestones in the implementation of our Asia strategy and will
strengthen our market position significantly in this growth market. Our
business in Asia will continue to increase in significance for the entire BMW
Group in the years to come. Having our own sales companies is a very important
element in being able to cover the various markets competently and
consistently."

Like the whole of Asia, Indonesia and the Philippines come under the
responsibility of Lüder Paysen. BMW already has sales subsidiaries in Asia in
Japan, Thailand and South Korea, regional offices in Singapore and China, and
CKD plants jointly operated with local partners in Malaysia, the Philippines,
Indonesia, and Vietnam. Since 1998, moreover, BMW has been operating its own
plant in Thailand.

Pursuing a strategy of worldwide presence, BMW has been systematically
establishing the Group's own sales subsidiaries ever since the '80s,
concentrating initially on the world's largest markets. The worldwide presence
of subsidiaries and production sites, and the further expansion of these, is a
crucial basis for additional growth. In 1981, for example, BMW became the first
European car maker to establish a sales subsidiary in Japan.

The list of markets the BMW Group serves directly in this way ranges from the
large single markets in Europe all the way to Australia, South Africa, South
Korea and Thailand; with the two newly established subsidiaries, the total
number of sales companies has now reached 27. The objective in the current
phase is to efficiently develop additional markets with a growth potential,
such as those in South-East Asia.

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