BMW THINKS OUT OF THE BOX, LOOKS UNDER THE HOOD TO SOLVE INDUSTRY PROBLEM

Innovative Program Helps Alleviate Shortage of Skilled Automotive Technicians

WOODCLIFF LAKE, New Jersey, June 17, 2002... College graduates are facing a
tight job market, but one industry is struggling to meet the demand for skilled
employees. Opportunities for automotive service technicians trained to repair
today's sophisticated vehicles have skyrocketed and due to this demand, and the
advanced skill set required to do the job, well-trained service technicians are
a hot commodity.

According to the U.S. Bureau of Labor Statistics, more than 60,000 automotive
service jobs in the U.S. are going unfilled as automakers compete for skilled
labor with other high tech industries.

Ahead of the Curve

Recognizing the importance of well-trained service technicians, BMW of North
America, LLC initiated a program in 1996 to help keep pace with its dealers'
burgeoning demand - a demand fueled by the tremendous growth in sales of BMW
vehicles in the U.S. (Sales have quadrupled in the past 10 years; there are
now more than 1.4 million BMWs on the road.) Called STEP, for Service
Technician Education Program, the successful initiative has expanded over the
past six years to turn out nearly 1,200 graduates.

STEPping up to the Challenge

Students accepted into the program pay no tuition for the advanced training in
automotive services. The placement for graduates has been consistently 100
percent. Only the top students at post-secondary automotive schools throughout
the country are accepted into the program; candidates must be bright, highly
motivated, drug free, and receive the highest grades and references.

A Good Deal for Dealers

Customer service - before, during and after the purchase - is a top priority
for BMW and the driving force behind the STEP initiative. Delivering a high
level of customer service is imperative and so the company underwrites much of
the cost of the additional training needed to service its vehicles.

When hiring a STEP graduate, dealers reimburse BMW for a portion of the
training costs. In return, they get a highly skilled and competent worker and
can count on a good measure of employee loyalty; the attrition rate for service
technicians who completed STEP is about 7 percent since the program began in
1996, compared to an industry average about 15 percent a year.

Reducing the Stigma

As automotive technology becomes more sophisticated, the perception of
automotive technicians changes too, says Brian Nelson, BMW's STEP Manager. "A
service technician today has more technical knowledge than an automotive
engineer 15 years ago. We need to do more at all levels to continue to change
mindsets."

One area of emphasis is on secondary schools, where a partnership of auto
manufacturers, dealers and qualified high schools offering career and technical
training is working to change attitudes and open doors. The Automotive Youth
Education Systems (AYES) was created to encourage young people to consider
careers in retail automotive service, and to prepare them for entry-level
career positions or advanced studies in automotive technology.

"Our mission is to change the connotation of the automotive industry among
parents and students," says Karen Seman, the AYES manager working full time
with BMW. "We bring together the schools, automobile dealers and manufacturers
to generate interest at the high school level and provide educational and
occupational opportunities."

BMW is an active participant in AYES; this year, about 40 students will be
getting hands-on experience at BMW dealerships across the country, and Tom
Purves, chairman and CEO of BMW (US) Holding Corp. is on the AYES board. In
addition to providing mentoring experiences and paid internships, dealers also
take part in career days at the schools. Upon high school graduation and AYES
certification, participating students are prepared to begin entry-level
employment or continue their technical education through programs like STEP.

A STEPping Stone to a better future

While the average annual salary for a STEP graduate is $55,000, once the
graduate gains on-the-job experience, it can run as high as $75,000 - $100,000
in some parts of the country. And the opportunities don't end there. Indeed,
many students have moved on from their initial technician positions - into
service management, field service engineering, and even as a head instructor at
one of the STEP training facilities.

BMW offers seven regional programs in Orlando; Phoenix; Houston; Cleveland;
Fremont, California; Upper Saddle River, New Jersey; and Ontario, California,
for 27 weeks of intensive, hands-on training on all BMW models.

BMW Group In America

BMW of North America has been present in the United States since 1975. Since
then, the BMW Group in the United States has grown to include marketing, sales
and financial service organizations for the BMW and MINI brands; a South
Carolina manufacturing operation; DESIGNWORKS/USA, an industrial design firm in
California; a technology office in Silicon Valley and various other operations
throughout the country. The BMW Group is represented in the U.S. through
networks of 340 BMW car, 327 BMW Sports Activity Vehicle, 148 BMW Motorcycle
retailers and 59 MINI car dealers. BMW US Holding Corp., the Group's
headquarters for North, Central and South America, is located in Woodcliff
Lake, New Jersey.

Information about BMW Group products is available to consumers via the Internet
at http://www.bmwusa.com http://www.bmwmotorcycles.com and
http://www.miniusa.com.

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For further information please contact:

Ilene Lefland
Jacobs & Prosek Public Relations
203-378-1152