BMW Group and Phoenix Consortium reach final agreement on the transfer balance sheet

"Powertrain" supplier plant in Longbridge passes to MG Rover

Munich. The BMW Group has reached agreement with the Phoenix Consortium
regarding the final transfer balance sheet for the sale of Rover Cars.

When the contract was signed last year by the BMW Group and the Phoenix
Consortium, the operating activities of Rover Cars were transferred with
immediate effect on 9 May 2000. The transfer balance sheet was prepared after
this. The subsequent differences of opinion as to the valuation of individual
balance sheet items were the object of an arbitration procedure that is now no
longer required.

Following this agreement, the "Powertrain" supplier plant in Longbridge, West
Midlands, will pass to the Phoenix Consortium at the end of the month. This
means that Phoenix Consortium will now be able to produce engines and
transmissions for itself and third party customers.

After the sale of the supplier factory, around 1,300 staff will be taken over
by the new owner, who will continue to employ them there.

The final agreement reached today also involves a payment of £65 million to the
Phoenix Consortium.

As reported several times, any risks involved with the separation are covered
by the provisions recorded by the BMW Group in the 1999 annual accounts.

For inquiries, please contact:

Press and Communications

Hubert Bergmann, Economic and Corporate Affairs, Corporate Communications
Tel: (+49 89) 382-20775, fax: (+49 89) 382-24418

Peik von Bestenbostel, Economic and Corporate Affairs
Tel: (+49 89) 382-22332, fax: (+49 89) 382-29756

Micheal Rebstock, Econimic and Corporate Affaris, Corporate Communications
Tel: (+49 89) 382-20470, fax: (+49 89) 382-24418

Internet: www.press.bmwgroup.com
e-mail: presse@bmw.de