BMW MOTORCYCLES CELEBRATE 75TH ANNIVERSARY WITH ANOTHER RECORD SALES YEAR, AWARDS AND THE ART OF THE MOTORCYCLE

Woodcliff Lake, NJ, January 18, 1999... BMW of North America, Inc., the
importer and distributor of BMW motorcycles in the United States since 1980,
posted record sales of 7,861 units in 1998, an increase of nearly 30 percent
over year-end sales figures for 1997. The strong performance in the U.S.
market contributed to the seventh consecutive year of benchmark sales
worldwide. Capping its 75th anniversary year, BMW Motorcycles sold more than
60,000 units in more than 100 international markets.

According to Edward A. Robinson, Vice President of BMW of North America's
Motorcycle Group, BMW's strong retail performance came as a result of the
continuing strength of several models, as well as the introduction of BMW's new
sport model, the R 1100 S.

"In just 18 months, the R 1200 C -- BMW's first entry into the most
competitive segment of the motorcycle market -- has become our top-selling
model," commented Robinson. "The Cruiser continues to draw praise among new and
existing BMW owners for its unique, progressive design and innovative
technology."

The BMW R 1100 RT also retained its standing among BMW's most popular models,
once again sweeping the top honors in its category from three top enthusiast
magazines. The latest awards make a total of nine top honors the R 1100 RT has
amassed since its introduction, confirming its leadership position among
touring motorcycles. Along with the RT, BMW's four cylinder K 1200 RS
continued to be a hot seller, while garnering Rider Magazine's "Editor's
Choice Award" for 1998.
The greatest success, however, came with the introduction of the R 1100 S, the
first BMW sport motorcycle to wear the 'S' designation since the famed R 90 S
introduced in 1973. Critics were unanimous in their praise for this machine,
lauding its advanced suspension system, and ability to function as both a
sharp-edged sporting weapon, and a comfortable sport-touring mount. The R 1100
S hit dealerships with waiting lists, and has continued to attract strong
demand through the end of the year.

1998 also proved to be another banner year for BMW authority motorcycles. For
the second year, BMW motorcycles were selected by the California Department of
General Services for use by the California Highway Patrol (CHP). In December,
the State agreed to purchase 130 of the 1999 BMW R 1100 RT-P police motorcycles
from A&S BMW Motorcycles of Citrus Heights, CA. The CHP, whose fleet of BMW
motorcycles will reach 317, joins dozens of other law enforcement agencies that
are using BMW authority motorcycles.

Internationally, BMW is the largest seller of motorcycles for authority use.
The machines are also gaining popularity among emergency medical personnel.
This summer, BMW and Saint Barnabas Health Care System of Livingston, NJ
introduced the nation's first hospital-based motorcycle paramedic team.

In 1998, BMW Motorcycles marked its 75th anniversary by partnering with the
Solomon R. Guggenheim Museum in New York to present an exhibition titled "The
Art of the Motorcycle." This exhibition showcased approximately 100
motorcycles from the late 1800s through the present offering many different and
intriguing perspectives: from its historical and technical development, to its
social and cultural significance. The "Art of the Motorcycle" broke every
attendance record at the Guggenheim, and received broadcast and print media
attention from around the world.

BMW of North America, Inc. was established in 1975, at which point the company
assumed marketing and distribution responsibilities of BMW automobiles in the
U.S. from the previous private distributor. Motorcycle marketing and
distribution was added in 1980. Since then the company's North American
operations have grown to include marketing, sales and financial services
organizations in the United States and Canada; a South Carolina manufacturing
operation; a design firm in California; and various other operations throughout
the U.S. and Canada. BMW is represented in North America through a network of
more than 375 automobile and 190 motorcycle retailers in the United States and
Canada. BMW (US) Holding Corp., the brand's North American headquarters, is
located in Woodcliff Lake, New Jersey.