BMW MOTORRAD OPENS "BOXER CAFE" IN CHINA AND PLANS LONG-TERM INVOLVEMENT IN THE MIDDLE KINGDOM

The time has come: BMW Motorrad is extending its involvement to China,
continuing to develop sustainable future market and trade relations in the Far
East. On May 11th 2007, the Munich-based company provided a further impulse on
its involvement in the Chinese city of Chongqing. At the centre of the Chinese
motorcycle industry, the Head of BMW Motorrad Dr. Herbert Diess opened the
"Boxer Café" - after Peking the second sales centre for BMW motorcycles in
China. The "Boxer Café" is not only a showroom and sales base but also a
meeting point and an experience and communication centre for friends of the
brand and all those interested in motorcycles.

The opening in Chongqing sets off a number of other activities in China,
establishing BMW Motorrad and its brand culture over the years to come. BMW
sees itself as a pioneer: big motorcycles are still a rarity in China and are
to be projected as ambassadors of new group experiences and a new lifestyle.
There are plans to offer travel programs and special motorcycle events for
Chinese customers as well as for other potential customers from all over the
world.

The Bavarian motorcycle manufacturer has been able to secure the collaboration
of the Chinese conglomerate LONCIN.
LONCIN, which will initially operate the "Boxer Café", will be the sales
partner and from 2008 also importer for BMW motorcycles in China. Extensive
knowledge of the market and a good sales network were the decisive reasons for
choosing LONCIN as a partner. Sales staff has been trained in Germany in
collaboration with the Munich sales subsidiary to ensure a high quality of
customer support from the very beginning.

With a production volume of one million bikes per year the motorcycle division
of LONCIN is one of the larger motorcycle manufacturers in China. The company
headquarters is situated in the world's largest conurbation for motorcycles;
between five and six million motorcycles are produced every year in the
Chongqing area. The most important supplier companies are located in the region
and well-known Japanese motorcycle manufacturers are already engaged in joint
ventures here.

As China is the world's largest and ever growing volume market for motorcycles,
the involvement in Chongqing is of significant strategic importance for BMW
Motorrad and its establishment as a brand in the Chinese market. The market in
China is gradually developing towards larger capacity motorcycles, thus
offering growth opportunities for BMW Motorrad.
Penetration of the Chinese supplier networks is a second key element of BMW
Motorrad's China strategy. However, an imperative requirement is the quality
capacity of the suppliers. Dr. Herbert Diess is aware that this early
involvement will ensure that the company is able to exert influence and gain
opportunities to shape future developments: "China and the Chinese suppliers
are progressing extremely quickly. Within a short time, there will be a repeat
of what happened 15 years ago in other parts of the world in the supplier
industry, and BMW Motorrad wants to be part of this process from the very
outset."

To Diess, purchasing parts in the Asian region - including China - is a crucial
means of compensating for the currency deficits of the euro as compared to the
yen. Today's currency-based cost advantage of the Japanese manufacturers
amounts to around 60% - a level which cannot be made up for by conventional
means or by increasing efficiency. The increase of Asia's share in the value
creation chain by means of parts sourcing will be indispensable for entry level
motorcycles and in the price-sensitive medium category to ensure that BMW
Motorrad is able to maintain competitive capacity and make use of the
attractive market opportunities offered by these segments in the long term.