BMW GROUP: STRONG AND SUCCESSFUL YEAR 2005

Earnings forecast achieved despite adverse external factors
Net profit at previous year's high level
Dividend to be increased again

Munich. The BMW Group continued to perform successfully in 2005 and was able to
achieve the targets communicated since the beginning of the year. As a result
of the significant sales volume increase and on-going efficiency improvement
measures, the negative impact of adverse currency effects and high raw material
prices was almost completely offset by the year-end. The profit before tax for
2005, at euro 3,287 million, was, as predicted, approximately at the same high
level as in the previous year (2004: euro 3,583 million/-8.3%).

During the past year, the BMW Group has once again been able to prove its
inherent strength, despite the difficult conditions facing the worldwide
automobile industry and a fair value loss recognized on the exchangeable bond
option on the shares of Rolls Royce plc, London held by the BMW Group. The
increase in the share price of the engine manufacturer resulted in a non-cash
expense of euro 356 million being recorded in 2005. The profit before financial
result and taxes (EBIT) increased by 0.5% to a new record level of euro 3,793
(2004: euro 3,774 million).

At euro 2,239 million, the net profit for the year was at a similar high level
to the previous year (2004: euro 2,242 million/- 0.1%). Amongst other items,
lower tax rates in some countries outside Germany also contributed to this
development. Earnings per share amounted to euro 3.33 (2004: euro 3.33) per
share of common stock and euro 3.35 (2004: euro 3.35) per share of preferred
stock. Group cash flow increased by 8.0% to euro 5,602 million (2004: euro
5,187 million) and free cash flow from Industrial Operations increased by 82.0%
to euro 3,717 million (2004: euro 2,042 million).

"2005 was another very strong and successful year for the BMW Group", stated
Helmut Panke, Chairman of the Board of Management of BMW AG. "The BMW Group is
currently the premium manufacturer with the highest sales volume in the world
and is also ahead of almost all of its direct competitors in terms of
profitability", continued Dr. Panke.

In order to improve transparency in its financial reporting, the BMW Group
elected, in accordance with IAS, to adopt an accounting option relating to the
accounting treatment of pension obligations. Pension obligations are now
presented in full in the balance sheet. In this context, the comparative
figures for the previous year were adjusted accordingly, as a result of which
the profit before tax for the financial year 2004 increased by euro 29 million
and profit for that year increased by euro 20 million.

Group revenues went up by 5.2% to a new high of euro 46,656 million (2004: euro
44,335 million) on the back of increased sales volumes and the extremely
positive performance recorded in the area of financial services business. The
pre-tax margin, at a group level, was 7.0% (2004: 8.1%).

"The product and market initiative is, and will remain, an essential factor
for the BMW Group's successful performance. Using this as our basis, we will
continue to press on determinedly along our course of growth and expansion",
emphasized Dr. Panke. Thanks to the strong range of brands and products,
further growth potential is forecast for the current year: "We expect the BMW
Group to remain on growth course in the financial year 2006 and to achieve a
new sales volume record," stated Dr. Panke.

Dividend to increase again

In light of the high level of profitability and positive outlook for the new
financial year, the Board of Management and the Supervisory Board will propose
a further dividend increase to the Annual General Meeting to be held on May 16,
2006. It will be proposed that the unappropriated profit of BMW AG available
for distribution amounting to euro 424 million will be used to a pay an
increased dividend of euro 0.64 per share of common stock (2004: euro 0.62) and
one of euro 0.66 per share of preferred stock (2004: euro 0.64).

Additional share buy-back proposed

In addition, the Board of Management and the Supervisory Board of BMW AG will
again propose a resolution at the Annual General Meeting authorizing the
buy-back of up to 10% of the company's share capital. It has not yet been
decided whether, or the extent to which, the authorization will be applied to
buy back further shares. The buy-back program resolved in September 2005
covering 20,232,722 shares of common stock, or 3% of share capital, was
completed on February 15, 2006. In total, shares were bought back for an amount
of approximately euro 759 million, at an average price per share of euro 37.51.

Automobiles segment adversely affected by currency factors and raw material
prices

The sales volume of all brands reached record levels in 2005. With 1,327,992
BMW, MINI and Rolls-Royce brand cars sold in the past year, the BMW Group beat
the sales volume record set in the previous year by 9.9% (2004: 1,208,732
cars).

With its core model series, the 3, 5 and 7 Series, the BMW brand was the
worldwide frontrunner in 2005 in each of the relevant segments. The sales
volume of the BMW brand rose by 10.1% to 1,126,768 (2004: 1,023,583) units. For
the first time, more that 200,000 MINI brand cars were sold in a single year,
with the number of cars delivered increasing by 8.7% to 200,428 (2004: 184,357)
units. The Rolls-Royce brand confirmed its position at the top of the absolute
luxury class. 796 Phantoms were delivered to customers, marginally higher than
the 792 sold in the previous year.

The profit before tax of the Automobiles segment for the financial year 2005
amounted to euro 2,976 million: due to the negative currency impact and high
raw material prices, this was 5.9% below the previous year's figure of euro
3,164 million. Segment revenues rose by 7.8% to euro 45,861 million (2004: euro
42,544 million).

Motorcycles segment reports sharp increase in earnings

The profitability of the Motorcycles segment improved significantly in 2005.
The segment profit before tax increased by 93.5% to euro 60 million (2004: euro
31 million). Segment revenues climbed by 18.9% to euro 1,223 million (2004:
euro 1,029 million) on the back of new models. The sales volume for the full
year rose by 5.6% to 97,474 (2004: 92,266) units.

Financial Services segment: growth course continued

The Financial Services segment continued to improve earnings in 2005. At euro
605 million, the segment's profit before tax was 17.5% higher on a year-on-year
basis (2004: euro 515 million). The volume of new customer financing contracts
rose by 13.2% to euro 23,507 million (2004: euro 20,759 million) and hence a
new record level. The proportion of new BMW and MINI cars financed by the
Financial Services segment in 2005 fell slightly to 41.1% (2004: 42.0%).

Capital expenditure remains at a high level

Capital expenditure in 2005, at euro 3,993 million, again remained at a high
level, albeit down by 8.1% (2004: euro 4,347 million). Capitalized development
costs recognized as assets in accordance with IAS increased by 24.5% to euro
1,396 million (2004: euro 1,121 million). A total of euro 2,597 million (-19.5/
2004: euro 3,226 million) was invested in property, plant and equipment and in
intangible assets.

Production volume increased

As a result of the higher level of sales volume, the BMW Group also achieved
new record figures in production volume terms: in total, 1,323,119 BMW, MINI
and Rolls-Royce brand cars were manufactured, an increase of 5.8% (2004:
1,250,345 units).

Heinz-Joachim Neubürger to succeed Volker Doppelfeld

The term of office of Volker Doppelfeld (70) as member of the Supervisory Board
comes to an end at the close of the Annual General Meeting on May 16, 2006. The
Supervisory Board will propose that Heinz-Joachim Neubürger (53), member of the
Executive Board of Siemens AG, be elected as a new member of the Supervisory
Board at the Annual General Meeting.

* * *

Further information on the Group Financial Statements 2005 will be available at
the Annual Accounts Press Conference to be held on March 15, 2006 in Munich.

The BMW Group - an Overview

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Telephone: (+49 89) 382-23362, Fax: (+49 89) 382-24418
Internet: www.press.bmwgroup.com
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