BMW GROUP INTERIM REPORT SECOND QUARTER 2001: BMW Group reports best half-year result to date

Munich, Germany... The BMW Group grew steadily and profitably in the second
quarter 2001: sales, turnover and earnings rose once again. The company is also
expecting developments to be positive in the rest of the year. The forecast is
that the number of BMW and MINI brand vehicles sold by the end of the year 2001
might pass 900,000 for the first time. The current product and brand offensive
will be consistently extended.

In the second quarter 2001, BMW Group sales reached 10,608 million euro, which
is an increase of 519 million euro (+ 5.1%) over the same quarter last year.
Excluding the external Rover/Land Rover sales of the same quarter last year
(1,778 million euro), the increase is 27.6 %. Over the half year, a 1,148
million euro (+ 6.1%) increase to 19,973 million euro was achieved.

The BMW Group's profit from ordinary activities in the second quarter 2001 was
847 million euro, which is 325 million euro or 62.3% above the same quarter
last year. In the first quarter 2001, profit including extraordinary earnings
in the sum of 75 million euro from the sale of plots of land no longer required
for operations had been
853 million euro. In the first half year 2001, profit from ordinary activities
was 1,700 million euro.

At 525 million euro, profit in the second quarter 2001 was 293 million euro (+
126.3%) above the comparable value last year. The total profit for the first
half year is therefore 934 million euro (+ 192.8%). The DVFA/SG result per
share in the first half year 2001 is 1.52 euro (1st half year 2000: 0.51 euro).

As of 30 June 2001, the BMW Group had a workforce of 94,765. In a direct
comparison with the first half year 2000, there has been a decline in the
number of staff employed of 11,840. Excluding the changes from the sale of
Rover/Land Rover, the workforce compared with 30 June 2000 rose by 3.3%. For
the first time, the BMW Group in Germany employed a workforce of more than
70,000. Here, staffing levels have risen by 3,500 to reach 71,025.

Product offensive successfully continued
"The BMW Group is consistently continuing its product and brand offensive. One
of the milestones here, from autumn onwards, will be the new 7 series", stated
Prof. Dr.-Ing. Joachim Milberg, Chairman of the Board of Management of BMW AG.
"The 7 series", Professor Milberg continued "will set new standards in
technology, driving dynamics, design and ease of operation and thus demonstrate
the innovative power and leadership of the BMW Group."

At the beginning of July, the MINI brand had an extremely successful sales
start in Britain with the MINI One and the MINI Cooper. The launch in mainland
Europe will follow in September.

The second generation of the BMW 3 series compact, the new BMW M3 Convertible
and the BMW X5 3.0d with a diesel in-series six-cylinder engine were
successfully launched in June. As 2001 progresses, the high-performance BMW X5
4.6is and the model revision of the BMW 3 series will be launched in addition
to the new
7 series.

Second half year will continue positive
The BMW Group expects sales to continue their positive developments in the
second half of 2001. Thus, for the first time total deliveries of more than
900,000 BMW and MINI brand cars are anticipated for the full year.

The BMW Group is consistently continuing its strategy to develop further market
potentials. In the near future the new BMW 6 and 1 series and the expansion of
the X family will significantly expand BMW's product portfolio. From 2003 the
BMW Group will sell the Rolls-Royce cars in the supreme top-end segment.
Expenditure on this wide range of new models will take its full effect in the
second half of the current year, which will also see the introduction of MINI
One/MINI Cooper and the new BMW 7 series will be incurred.

In the light of the very positive operative development, the BMW Group is
confident that even in this period of substantial expenditure on the Group's
product and brand offensive the outstanding result achieved in the BMW
Automobiles segment in the year 2000 will be reached once again. On Group
level, the new orientation of the BMW Group will lead to a significant
improvement of the result in 2001.

An overview of the BMW Group - results by segment

Sales in the BMW Automobiles segment increased considerably in the first half
year (+ 19.3%) to 17,431 million euro (1st half year 2000: 14,609 million euro).

In the first six months, profit from ordinary activities in the BMW Automobiles
segment rose by 22.2% to 1,577 million euro. This figure is all the more
satisfactory in view of the fact that it also takes account of the development
costs for the product and brand offensive.

All-time highs in volume sales and production made the first half year 2001 the
best in the history of BMW Automobiles. New absolute record values have been
achieved for sales every month since the beginning of the year. A total of
459,835 BMW brand vehicles had been sold by the end of June.

With 276,987 units delivered to customers, the 3 series achieved a new record
in the first half year 2001; this is 5.7 percent up on the previous year. In
addition to the 3 series convertible introduced in 2000, the 3 series touring
is the primary motivating force here. Deliveries of the 3 series saloon in its
fourth year of production reached 163,374 units, which is an increase of 4,200
units (+ 2.6%) over the first half year 2000.

With 107,805 vehicles sold in the first half year 2001, the 5 series was 3.5%
above last year's levels; the model revision undertaken in autumn 2000 has been
received positively by the market.

The Sports Activity Vehicle X5, 35,587 of which were sold in the first half
year, has had a major influence on the satisfactory half year figures. This
marks an increase of 25,255 vehicles compared with the first half year 2000.

The last vehicles of the existing 7 series were produced at the end of July.
Before the introduction of the successor model, sales of the 7 series showed a
decrease over the previous year, as expected, reaching 17,104 units (- 14.7%)
at the end of June.

BMW Motorcycles also set new records
In the first half year, sales in the BMW Motorcycle segment reached 627 million
euro (1st half year 2000: 547 million euro). This is an increase of 14.6%.

Profit from ordinary activities rose in the first half year to 59 million euro
- an increase of 22.9%.

With 50,117 motorcycles delivered to customers as of 30 June 2001, the BMW
Motorcycles segment passed the 50,000 vehicle mark for the first time in a half
year. This corresponds to an increase of 9.8 percent compared with the same
period last year.

BMW Motorcycles have successfully detached themselves from the general trend in
the international markets, and have developed better than the respective market
as a whole in nearly all sales regions.

5,820 units of the C1, launched in April 2000, were delivered to customers in
the first half year. This is 59.5% more than in the corresponding period last
year (3,649).

BMW Financial Services expands product portfolio
In the first half year 2001, BMW Financial Services continued to expand its
strategic operations in fleet management, multibrand financing and direct
banking.

With its entry into the investment funds business in Germany, BMW Bank GmbH has
opened up a business area offering a high growth potential. In cooperation with
a well-known funds manager, the company is able to offer customers five
innovative MultiManager funds on an exclusive basis.

The investment business covered by the Direct Banking sector achieved a volume
of 2.4 billion euro worldwide as of 30 June 2001. This represents an increase
of 71.4% compared with 30 June 2000.

Sales of BMW Financial Services reached a half year value of
3,719 million euro, which is 526 million euro (+16.5%) more than in the first
half year 2000.

Please download the attached overview chart for detailed sales figures.

Contact: Jurg Dinner, Corporate Communications, Business Communications
Telephone: (+49 89) 382-24118, Fax (+49 89) 382-24418

Michael Rebstock, Corporate Commnications, Business and
Finance Communications
Telephone: (+49 89) 382-20470, Fax (+49 89) 382-24418