BMW Group Still On Growth Course With New Models - Aiming for volume growth for all brands.

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Munich, Germany, August 7, 2003 ... The activities of the BMW Group in 2003 are
being dominated by the implementation of the product and market offensive.
Following the launch of the MINI One D in May 2003, the Group began delivering
the new BMW 5 sedan to dealers and customers from the middle of the year. Other
important milestones, such as the presentation of the BMW 6 Series Coupe and
the new BMW X3, will follow in the course of 2003. In the words of Dr. Helmut
Panke, Chairman of the Board of Management of BMW AG, in conjunction with the
presentation of the half-year figures: "Encouraged by the excellent start made
by the new models, the BMW Group is still predicting that the reduction in
sales of BMW brand cars in the first half of 2003 due to product life-cycle
factors be made good over the full year and that the Group will achieve volume
growth for all brands compared to the previous year."

Despite this predominantly product life-cycle induced reduction in the sales
volume of BMW brand cars, the BMW Group delivered 283,296 units to customers
during the second quarter 2003. This was almost exactly in line with the sales
volume achieved in the same quarter 2002 (283,280 units). On a half-year basis,
a total of 544,869 BMW, MINI and Rolls-Royce Motorcars automobiles were sold,
0.2% more than in the first half of 2002 (543,742).

Total revenues of the BMW Group in the second quarter 2003 fell by 11.7% to
euro 10,241 million (second quarter 2002: euro 11,599 million) mainly as a
result of currency effects. Overall, the BMW Group generated revenues of euro
20,513 million in the first half of 2003, 8.3% less than in the first half of
2002 (euro 22,367 million).

As expected, the profit from ordinary activities for the second quarter 2003
was below previous year's figure due to the high level of expenditure for the
product and market offensive, covering the relevant structure and launch costs
for the introduction of new models. Altogether, the profit from ordinary
activities for the second quarter 2003 fell by 7.2% to euro 947 million (second
quarter 2002: euro 1,020 million).

The Group's performance benefited from the positive effects of the measurement
of financial instruments. The profit from ordinary activities for the first
half of 2003, at euro 1,777 million, was 12.5% below that for the corresponding
period in 2002 (euro 2,031 million).

The net profit of the BMW Group for the second quarter 2003 fell by 9.7% to
euro 568 million (second quarter 2002: euro 629 million). The net profit for
the first half of 2003 fell by 14.5% to euro 1,078 million (first half of 2002:
euro 1,261 million).

More than 4,000 new jobs created
As of June 30, 2003, the BMW Group had a workforce of 103,335 employees, 3.9%
more than the same time one year ago (99,464 employees). The comparable number
of employees at June 30, 2002 after adjusting for disposals and transfers of
group companies was 99,241, so that the increase on a comparable basis was
4.1%. The BMW Group thus created 4,094 new jobs over this period, including
more than 3,300 in Germany. On an adjusted basis, the workforce increased by
2,124 employees compared to December 31, 2002, including 2,097 new employees in
Germany.

So far, 1,065 new employees have been recruited for the new BMW plant in
Leipzig. Most of these are currently working in the various BMW Group plants in
Bavaria, preparing for their future tasks in Leipzig. By the year-end, the
workforce for the new plant will increase to approximately 1,300 employees.

International presence expanded
The BMW Group completed a number of important measures during the second
quarter 2003, aimed at increasing international presence. The production and
sales joint venture with the Chinese partner, Brilliance China Automotive
Holdings will play a key role in this respect. Production of the BMW 3 Series
will commence before the end of 2003 in Shenyang, northern China. In addition,
a group sales subsidiary has been set up in Malaysia with a local partner and
selling activities commenced with effect from August 1, 2003.

The BMW Group also extended its network of subsidiaries in Western Europe. With
effect from October 1, 2003, the BMW Group will be taking over direct market
responsibility in Greece, Ireland, Denmark and Luxembourg, previously served
through importers.

Profit forecast remains unchanged
The performance so far in 2003 is in line with the expectations of the BMW
Group. Despite the expenditure incurred in conjunction with the product and
market offensive, which mainly impacts the results of the Automobiles segment,
the BMW Group is still aiming, on a full year basis, to match previous year's
earnings.

Automobiles segment in line with expectations
Revenues of the Automobiles segment for the second quarter 2003 amounted to
euro 9,647 million and were thus 3.3% below the second quarter 2002 (euro 9,978
million). On a half-yearly basis, revenues fell by 2.3% to euro 19,020 million
(first half of 2002: euro 19,463 million). Above all, the weakness of the US
dollar against the euro had a negative impact on revenues.

The profit from ordinary activities of the Automobiles segment was again
affected significantly in the second quarter 2003 by the implementation of the
product and market offensive and the related high level of expenditure. The
profit from ordinary activities for the second quarter 2003 decreased by 19.8%
to euro 768 million (second quarter 2002: euro 958 million). For the first half
of 2003, the BMW Group reports a profit from ordinary activities of euro 1,487
million, down 20.6% compared to the same period last year (euro 1,872 million).

The sales volume of BMW brand cars was again affected in the second quarter
2003 by the product life-cycle of certain BMW models. A total of 239,205 BMW
brand cars was sold in the quarter, 3.8% fewer than in the second quarter 2002
(248,559 units). For the six month period, the sales volume of BMW brand cars
totalled 454,972 units and was therefore 5.5% below the figure for the first
half of 2002 (481,330 units).

Demand for the MINI brand continued to rise. 44,073 units (second quarter 2002:
34.721 units) were sold during the second quarter 2003, an increase of 26.9%.
Altogether, 89,878 MINI brand cars were delivered to customers during the first
half of 2003, and increase of 44.0% compared to the first half of 2002 (62,412
units).

Whereas the first Rolls-Royce Phantoms manufactured in Goodwood, England, were
for demonstration and display purposes, the second quarter 2003 saw the first
deliveries to dealers and customers. The receipt of several hundred orders for
delivery in the current year underpins the high level of interest generated by
the Rolls-Royce Phantom.

Motorcycles segment holds its own despite difficult market conditions
Revenues of the Motorcycles segment in the second quarter 2003 amounted to euro
329 million, 6.3% below the figure for the second quarter 2002 (euro 351
million). As well as a lower sales volume, the strength of the euro against the
US dollar also had a negative impact. Revenues in the first half of 2003 fell
by 3.1% to euro 633 million (first half of 2002: euro 653 million).

The profit from ordinary activities of the Motorcycles segment for the second
quarter 2003 amounted to euro 58 million, 1.7% below the figure for the second
quarter 2002 (euro 59 million). The profit from ordinary activities for the
first half of 2003, at euro 88 million, fell just short (-1.1%) of the result
in the equivalent period in 2002 (euro 89 million).

Most of the international motorcycle markets continued to be affected by
downward trends in the second quarter 2003 and the sales volume of the
Motorcycles segment, at 30,688 units was only 2.4% below the record level
achieved in the second quarter 2002 (31,450 units). On a half-year basis, the
sales volume of 51,589 units was down 3.0% compared to the first half of 2002
(53,186 units).

Financial Services segment still on growth course
The Financial Services segment remained on growth course during the first half
of 2003. On a worldwide basis, the proportion of new BMW and MINI brand cars
financed or leased via the Financial Services segment increased in the first
half of 2003 to 39.4% (first half-year 2002: 35.1%).

The total business volume of the Financial Services segment as disclosed in the
balance sheet amounted to euro 27,493 million at June 30, 2003, an increase of
8.4% compared to the June 30, 2002 (euro: 25,356 million).

The profit from ordinary activities of the Financial Services segment in the
first half of 2003 improved by 26.4% to euro 225 million (first half of 2002:
euro 178 million). The profit from ordinary activities for the second quarter
was euro 118 million, up 20.4% over the same quarter last year (euro 98
million).
BMW Group in figures

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 and Rolls-Royce
Motor Cars; DesignworksUSA, an industrial design firm in California; a
technology office in Silicon Valley and various other operations throughout the
country. BMW Manufacturing Corp. in South Carolina is part of BMW Group's
global manufacturing network and is the exclusive manufacturing plant for all
Z4 roadster and X5 Sports Activity Vehicles. The BMW Group sales organization
is represented in the U.S. through networks of 340 BMW car, 327 BMW Sports
Activity Vehicle, 148 BMW Motorcycle retailers, and 70 MINI dealers. BMW (US)
Holding Corp., the BMW Group's sales 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:
www.bmwusa.com
www.bmwmotorradusa.com
www.miniusa.com
www.rolls-roycemotorcars.com

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Journalist note: Information about the BMW Group and its products is available
to journalists on-line at the BMW Group PressClub at the following address:
www.press.bmwgroup.com.

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