BMW Group reports significant sales volume increase in the third quarter 2005 / Earnings still being affected adversely by external factors / Outlook for year confirmed

Munich. The BMW Group further enhanced its leading position in the premium
segments of the international automobile markets in the third quarter 2005 by
recording a continual increase in sales volume growth rates. Despite
persistently difficult market conditions, a total of 341,932 BMW, MINI and
Rolls-Royce brand cars was delivered to customers in the period from July to
September 2005, 15.4% more than in the previous year (third quarter 2004:
296,310 units). 988,463 cars were sold during the first three quarters of 2005,
an increase of 11.4% (first nine months 2004: 887,293 units).

Total group revenues for the third quarter 2005 increased to euro 11,721
million (+10.5%, third quarter 2004: euro 10,611 million). On a nine-month
basis, group revenues rose by 2.7% to euro 34,237 million (first nine months
2004: 33,326 million).

As already forecast for the full year, earnings for the third quarter 2005 were
affected by the currency factors, higher raw material prices and more intense
market competition. Despite the dynamic growth of sales volumes and extensive
measures to improve efficiency, the impact of these external factors could not
be fully offset.

The profit before financial result (EBIT) nevertheless increased by 4.4% to
euro 855 million (third quarter 2004: euro 819 million). The fair value loss
recorded on the exchangeable bond option relating to the BMW Group investment
in Rolls-Royce plc, London, had a negative impact of euro 175 million alone in
the third quarter 2005 compared to the corresponding period last year.

In the light of these various factors, the BMW Group reports a profit before
tax of euro 2,375 million for the nine-month period (first nine months 2004:
euro 2,714 million), 12.5% below the previous year's figure. The profit before
tax for the third quarter amounted to euro 647 million (-16.9%, third quarter
2004: euro 779 million).

The net profit for the third quarter 2005 amounted to euro 448 million (-6.5%,
third quarter 2004: euro 479 million). The net profit for the first nine months
of 2005 therefore amounted to euro 1,630 million (-2.6%, first nine months
2004: euro 1,673 million). As in the first half of the year, the third quarter
2005 benefited from positive factors affecting the tax expense, in particular
in the United Kingdom.

For the third quarter, earnings per share were euro 0.67 for each share of
common stock (third quarter 2004: euro 0.71) and euro 0.67 for each share of
preferred stock (third quarter 2004: euro 0.71). For the nine-month period,
earnings per share were euro 2.42 for each share of common stock (first nine
months 2004: euro 2.48) and euro 2.43 for each share of preferred stock (first
nine months 2004: euro 2.49). Cash flow increased by 1.9% to euro 1,316 million
(third quarter 2005: euro 1,291 million). On a nine-month basis, cash flow
therefore rose by 8.7% to euro 4,132 million (first nine months 2004: euro
3,801 million).

"The Group continues to grow dynamically in line with our long-term strategy.
Despite persistently difficult conditions, we will continue to perform
successfully", stated Helmut Panke, Chairman of the Board of Management of BMW
AG. "For the full year 2005, we continue to forecast a sales volume growth in
the high single digit range. On the earnings side, currency factors, high raw
material prices and intense competition are all having an adverse impact.
Against this background, the BMW Group's unchanged aim for 2005 is to achieve
approximately the high earnings level of 2004".

Workforce virtually unchanged
The BMW Group had a workforce of 106,859 employees at 30 September 2005,
virtually unchanged from one year earlier (30 September 2004: 106,817).
Coinciding with the start of the new training year, 1,237 apprentices worldwide
(including 1,183 apprentices in Germany) commenced their career with the BMW
Group during the third quarter 2005. The number of apprentices in the BMW Group
thus remained at the previous year's high level: the BMW Group currently has
4,494 apprentices worldwide, 0.6% more than one year earlier (30 September
2004: 4,466).

Model initiative continues
The BMW Group presented numerous new products at the International Motor Show
(IAA) in Frankfurt/Main in September 2005. As well as the BMW 130i, which has
complemented the 1 Series since autumn 2005, the BMW Group also presented the
new BMW 3 Series Touring and the extended wheelbase version of the Rolls-Royce
Phantom at the show.

The BMW Group will continue to implement its wide-ranging model initiative
during the forthcoming model year. New models with high-performing, yet highly
efficient engines will be introduced for almost all model series. The BMW Group
expects further sales volume momentum and sales mix benefits to be generated by
the new models and a range of other innovations, such as the four-wheel system
xDrive to be introduced in further models or the driver assistance system, BMW
Night Vision.

Automobiles segment: further sharp growth in sales volume
Revenues of the Automobile segment in the third quarter 2005 increased by 13.5%
to euro 11,707 million (third quarter 2004: euro 10,317 million). Revenues for
the first nine months totalled euro 33,572 million (first nine months 2004:
euro 31,576 million), an increase of 6.3%. The effect of product mix shifts is
particularly noticeable when comparing the nine-month figures.

The profit before tax of the Automobile segment was lower than in the
equivalent periods in 2004 both on a quarterly and nine-month basis. Segment
profit before tax for the third quarter fell by 7.9% to euro 639 million (third
quarter 2004: euro 694 million); for the first nine months of 2005 it fell by
10.7% to euro 2,149 million (first nine months 2004: euro 2,407 million).

290,454 BMW brand cars were delivered to customers in the third quarter 2005,
16.9% more than in the previous year (third quarter 2004: 248,431 units).
828,586 BMW brand cars were sold in the period from January to September 2005,
up by 11.4% compared to the corresponding period last year (first nine months
2004: 743,927 units).

A total of 51,299 MINI brand cars were sold between July and September 2005, an
increase of 7.5% (third quarter 2004: 47,713 units). 159,413 MINI were
delivered to customers during the first nine months, 11.6% ahead of the figure
for the same period last year (first nine months 2004: 142,881 units).

179 Rolls-Royce motor cars were sold during the third quarter 2005, 7.8% more
than in the previous year (third quarter 2004: 166 units). The sales volume for
the nine-month period totalled 464 units (-4.3%, first nine months 2004: 485
units).

Motorcycle business: robust development of sales volume over course of year
The BMW Group's motorcycle business held up well in the third quarter 2005
amidst inconsistent conditions; unit sales continue to develop robustly over
the course of the year. With 23,553 motorcycles sold in the third quarter 2005,
the high sales volume achieved in the previous year was almost repeated (-0.3%,
third quarter 2004: 23,616). On a nine-month basis, the number of motorcycles
sold rose sharply by 12.0% to 80,840 units (first nine months 2004: 72,186
units), with the R 1200 GS and the new models, R 1200 RT and K 1200 S,
contributing especially to the good sales performance.

Revenues of the Motorcycles segment for the third quarter 2005 increased by
6.3% to euro 272 million (third quarter 2004: euro 256 million). This means
that revenues for the nine-month period rose by 21.0% to euro 1,013 million
(first nine months 2004: euro 837 million). The segment's profit before tax
also developed positively: this amounted to euro 4 million for the third
quarter 2005 (third quarter 2004: loss before tax of euro 13 million), thus
giving a profit before tax of euro 88 million for the nine-month period, an
improvement of 49.2% (first nine months 2004: euro 59 million).

Financial services business remains on growth course
The Financial Services segment continued to perform well during the third
quarter 2005. For the first time, the number of lease and financing contracts
in place with dealers and retail customers surpassed the two million mark in
the course of the quarter and stood at 2,011,626 contracts at the period-end
(30 September 2004: 1,770,186 contracts). This represents an increase of 13.6%
compared to one year earlier. At the same time, the segment's business volume
in balance sheet terms rose by 19.4% to euro 38,436 million
(30 September 2004: euro 32,194 million). At 41.0%, the proportion of new cars
of the BMW Group leased or financed by the Financial Services segment remained
virtually unchanged (0.4 percentage points lower than comparable ratio in the
previous year).

New retail customer business expanded further in the third quarter. New
financing contracts and leases with a value of euro 17,486 million were signed
during the first nine months of 2005, up by 11.6% (first nine months 2004: euro
15,666 million). This corresponds to 656,922 new contracts signed in the period
from January to September 2005, an increase of 9.4% (first nine months 2004:
600,651 contracts). This figure includes 221,399 contracts signed in the third
quarter 2005 (+5.4%, third quarter 2004: 210,142 contracts).

In line with this positive development, the segment profit before tax for the
third quarter 2005 increased by 18.4% to euro 167 million (third quarter 2004:
euro 141 million). The Financial Services segment profit before tax for the
nine-month period was euro 478 million, 16.9% higher than in the previous year
(first nine months 2004: euro 409 million).
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The full Interim Report to 30 September 2005 is available for download at
www.bmwgroup.com/ir .