BMW Group and Brilliance sign joint venture contract for planned production in China

Munich / Beijing. The BMW Group and Brilliance China Automotive Holdings
Limited today signed a contract for a production and distribution joint venture
in China at the Great Hall of the People in Beijing. The signing paves the way
for the planned local production of BMW cars in Shenyang, the capital of
Liaoning Province in the North-East part of the People's Republic of China.

The contract was signed by Dr. Helmut Panke, Chairman of the Board of
Management of BMW AG, together with Mr. Wu Xiao An, Chairman of Brilliance
China Automotive Holdings Limited. Top ranking officials from relevant
ministries in Beijing, Governor Bo Xilai of Liaoning Province, German
Ambassador Mr. Broudré-Gröger and senior executives from both parties witnessed
the signing of this milestone contract.

"The joint venture in China is a crucial step for the BMW Group", said Dr.
Panke. "This will allow us to consistently expand and strengthen our position
in one of the most important automobile markets of the future. We will offer
authentic premium products to our customers in China, characterised by
emotional appeal, uncompromising engineering, innovative technology, and high
quality workmanship."

Mr. Wu said: "This joint venture between Brilliance and the BMW Group will
allow both parties to tap into the vast potentials of the fastest growing
automotive market in the world while giving many more Chinese consumers the
opportunity to enjoy the renowned qualities of BMW Group products. The
foundation of the joint venture is also a milestone for the Chinese automotive
industry since it will set new standards for the production of automobiles and
related services."

The written approval of the jointly prepared feasibility study was received
from the State Development and Planning Commission on March 14 2003. The final
stage in the procedure leading to the official foundation of the joint venture
is the approval of the joint venture contract and the granting of the business
license by the government authorities.

The joint venture will engage in the production, sales, and after-sales service
of premium automotive products of the BMW Group. The start of production is
planned for the second half of 2003. In the medium term, an annual production
of around 30,000 BMW 3 Series and 5 Series vehicles is envisaged.

In Shenyang, the joint venture will incorporate essential parts of the new
plant built in 1999 by Brilliance Auto, expanding these local operations into a
fully-fledged production facility in line with the high BMW Group standards of
quality worldwide.

The BMW Group and its Chinese counterpart each will hold a 50% share in the
joint venture. A total of 450 million euros is to be invested by 2005. In the
medium term, the joint venture will employ approximately 3,000 staff. The
local supplier industry is continuously being expanded. For the first
generation of vehicles produced in China, local content of approximately 40 per
cent is expected. The dealer network will be adapted continuously to the
production volume.

The BMW Group regards the joint venture as a new milestone in its process of
internationalisation. On the basis of its ongoing market offensive, the
company is consistently strengthening its global presence and strategically
opening up new markets, particularly among the rapidly growing markets in Asia.

Today, the sales network of the BMW Group consists of 27 own sales subsidiaries
and some 3,000 dealerships around the world. Smaller markets are currently
served by more than 100 importers. The BMW Group is represented in over 120
countries on all five continents. In addition, the company operates 23
production and assembly plants in 14 countries, including 5 in Asia (Malaysia,
Vietnam, the Philippines, Indonesia and Thailand). No other premium
manufacturer has recourse to such an internationally oriented network of
production and sales.

With the joint venture in China, the company is adding a central pillar in Asia
to this network, hence consistently implementing its Asia strategy. Over the
next five years, the company is planning to increase its annual sales in Asian
markets from around 80,000 to 150,000 units.

The company is continuing on a path of ongoing growth in China; customer
deliveries increased in 2002 by 41.4 per cent to 15,500 vehicles (the Chinese
mainland, Hong Kong and Taiwan markets). Following the USA and Germany, these
markets have now become the third largest sales region for the 7 Series in the
2002 financial year. In the first quarter of 2003, the BMW Group expects a
sales volume of around 4,400 BMW and MINI vehicles in Greater China, an
increase of nearly 30% compared to the equivalent period 2002. The BMW Group
anticipates a continuing upward trend particularly in the premium segments in
China in the years to come.

Brilliance is convinced that its partnership with the BMW Group is an important
move in its strategy to transform the company into a fully-fledged automobile
manufacturer in China. The company believes the Chinese automobile industry
will play a critical role in the future development of the global car market.

Brilliance states: "We are fully committed to the partnership with the BMW
Group since the BMW Group has demonstrated commitment to China, and it has
unparalleled strength in the development, production and sales of premium
vehicles. Moreover, the BMW brand is among the most desired premium brands in
China."