BMW Group presents record fiscal year 2001

Munich. The chief characteristic of the year 2001 for the BMW Group, was its
current product and market offensive, spurred on by a 26.4% increase in capital
expenditure to euro 3,516 million. The capital expenditure ratio (capital
expenditure as a percentage of Group revenue amounting to euro 38,463 million)
was therefore 9.1%. In accordance with the requirements of International
Accounting Standards (IAS), which were adopted by the BMW Group for accounting
and financial reporting in 2001, capital expenditure also includes development
costs of euro 665 million which have been recognised as assets. The bulk of
capital expenditure related to the BMW Automobiles segment with a total volume
of euro 3,055 million (+28.6%). Extensive measures have been taken in this
segment to prepare for the launch of new models, to ensure that the Group
maintains its technological and innovative leadership and to expand production
capacities. As in previous years, capital expenditure was financed fully out of
cash flow which incr
eased in 2001 to euro 4,202 million (+11.1%).

Product range expanded
The product range was expanded in 2001 by the successful launch of the new BMW
7 Series and the new MINI brand models in Europe. Other BMW product innovations
in 2001 were the new 3 Series compact model, the M3 convertible, the updated
BMW 3 Series and the X5 4.6 iS.

The BMW Group will continue to expand its product range in the coming years as
part of its product and market offensive. Work is progressing in accordance
with plan on the new BMW 1 Series, on the next BMW 5 Series and on the BMW 6
Series. The same applies to the successor of the BMW Z3, the new Rolls-Royce
and the BMW X3 Sports Activity Vehicle (SAV).

2001 by far most successful year for the BMW Group
The BMW Group was able to report last week that its profit from ordinary
activities in 2001 had increased by euro 1,210 million (+ 59,5%) to euro 3,242
million (2000: euro 2,032 million). All segments contributed to this improved
performance. Group revenue grew by 3.3% to euro 38,463 million. Net profit for
the year increased to euro 1.866 million (+54.3%) for the year. The return on
sales climbed to 8.4% (2000: 5.5%).

All segments reported improved results
The profit from ordinary activities of the BMW Automobiles segment improved by
2.2% to euro 2,792 million despite the high level of expenditure for the
on-going product and market offensive. The BMW Motorcycles segment also
surpassed its previous year's result and increased its profit from ordinary
activities by 78.8% to euro 59 million. The profit from ordinary activities of
the Financial Services segment increased to euro 390 million (+11.1%).

Earnings per share (in accordance with IAS 33) were euro 2.78 per share of
common stock and euro 2.80 per share of preferred stock. In the previous year
the equivalent figures had been euro 1.80 per share of common stock and euro
1.82 per share of preferred stock.

Dividend increase proposed
At the Annual General Meeting, the Board of Management and the Supervisory
Board will propose that the unappropriated profit of BMW AG of euro 350 million
be used to pay a dividend of euro 0.52 per share of common stock (2000: euro
0.46) and euro 0.54 per share of preferred stock (2000: euro 0.48) on the share
capital of the Company comprising euro 622.2 million common stock and euro 49.6
million preferred stock divided into shares with a nominal value of euro 1
each. This represents an increase in the dividend of 13% (common stock) and
12.5% (preferred stock).

Focus on premium segment as success factor
In the words of Prof. Dr.-Ing. Joachim Milberg, Chairman of the Board of
Management of BMW AG at the Annual Accounts press conference held in Munich on
19 March: "The figures demonstrate that we are on the right course with our
premium brand strategy. 2001 was the first full year after setting out on our
new strategy. It was a year in which we were able to concentrate all our
efforts on the unique strengths of the Group: the development, construction and
sale of premium products." Prof. Milberg emphasised that the main strength of
the BMW Group is its excellent workforce. Approximately 5,000 new employees
were taken on by the Group in 2001, including 4,000 new employees in Germany.
Overall, the workforce increased to 97,275 employees.

BMW Group still on growth course
The Group expects the positive trend to continue in 2002. The premium segments
of the international markets will grow faster than the average. Dr. Helmut
Panke, member of the Board of Management of BMW AG responsible for Finance,
stated "We are confident that we will be able to report improvements in sales
volumes, revenues and earnings for the year 2002".

Sales volume of 905,700 cars
The BMW Group delivered a total of 905,700 cars to customers in 2001. The
number of BMW-brand cars delivered to customers went up by 7.1 % to 880,700
units, a new record. This growth was due principally to the strong demand for
the various models of the BMW 3 Series and the market success of the Sports
Activity Vehicle BMW X5. In addition, some 25,000 MINI brand vehicles
(including 10,650 in Great Britain) were sold between July 2001, when the MINI
was launched, and 31 December 2001.

The sales volume of BMW Motorcycles (including the C1) rose by 17.3 % to 95,350
units.

The continued appeal and popularity of the BMW 3 Series was confirmed in 2001
by a 4.5% increase in deliveries to approximately 534,000 units. The number of
BMW 5 Series sold was up by 0,5% to 194,000 units, despite the fact that it is
now in its sixth year of production. 82.650 BMW X5 were delivered to customers,
more than double the volume sold in the previous year.

In the period between its launch in November and the year end, some 3,000 new
BMW 7 Series cars were delivered to customers. 29,800 vehicles of the
predecessor model were delivered before production ended. The super sports car
BMW Z8 achieved a sales volume of 2,200 units.

Prospect of sales volume of over 1 million cars in 2002
Sales volumes in the first two months of the new fiscal year confirm the
positive trend. By the end of February, some 152,000 vehicles (+ 17.7%) had
been sold, including 6,225 new BMW 7 Series cars. The sales volume of this
model, which was launched in Germany in November 2001, is therefore well ahead
of the sales of the predecessor model for the equivalent period. A total of
14,200 MINI brand cars had been sold worldwide by the end of February 2002.
Since its launch (in Great Britain in July 2001), the total sales volume of the
MINI has therefore reached 39,200 units. As Prof. Milberg stated "Taking all of
these factors into consideration, we have a chance of achieving a sales volume
of over 1 million cars in 2002."

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