BEST QUARTER FOR THE BMW GROUP / INTERIM REPORT Q2

Munich. The BMW Group recorded strong sales volume increases for all of its
brands and thus continued on its successful course in the second quarter of
2004. New quarterly records were set for sales volume, revenues and earnings.
"The BMW Group has demonstrated its strength with a positive performance.
During the second quarter 2004 and on a six months comparable basis, the BMW
Group has grown on the back of its product initiative and outperformed the
overall market in virtually all of the major international automobile markets",
stated Helmut Panke, Chairman of the Board of Management of BMW AG. "We remain
confident that we will be able to record further sales volume increases for all
brands and achieve new record figures for revenues and earnings for the full
year."

Group revenues for the second quarter 2004, at euro 11,910 million, were up by
16.0% (second quarter 2003: euro 10,266 million). Group revenues for the first
six months of 2004 increased by 10.5% to euro 22,715 million (first half-year
2003: euro 20,563 million).

The profit from ordinary activities for the second quarter 2004 was euro 1,084
million, an improvement of 14.5% (second quarter 2003: euro 947 million). The
profit from ordinary activities for the first six months of 2004 also clearly
surpassed the corresponding figure for 2003. At euro 1,935 million, the profit
from ordinary activities of the BMW Group was 8.9% ahead of the corresponding
period last year (first half-year 2003: euro 1,777 million).

The Automobiles segment contributed significantly to this improvement. The
profit from ordinary activities of the Automobiles segment for the second
quarter 2004 rose by 26.4% to euro 971 million (second quarter 2003: euro 768
million). Thanks to this positive development, the segment return on sales
improved to 8.4% (second quarter 2003: 8.0%).

The net profit of the BMW Group for the second quarter 2004 rose to euro 671
million, an increase of 18.1% (second quarter 2003: euro 568 million) and also
a new record. The net profit for the first half of 2004 thus amounted to euro
1,194 million, an improvement of 10.8% (first half-year 2003: euro 1,078
million).

Thus, for the second quarter 2004, the BMW Group generated earnings per share
of common stock of euro 0.99 (+17.9% / second quarter 2003: euro 0.84) and
earnings per share of preferred stock of euro 1.00 (+17.6% / second quarter
2003: euro 0.85). On a six-month comparable basis, earnings per share amounted
to euro 1.77 (+10.6% / first half-year 2003: euro 1.60) per share of common
stock and euro 1.78 (+10.6% / first half-year 2003: euro 1.61) per share of
preferred stock.

More than 1,100 new jobs created since the beginning of the year
The BMW Group had a worldwide workforce of 105,388 employees at June 30, 2004,
2.0% more than one year earlier (June 30, 2003: 103,335 employees). More than
1,100 new jobs have therefore been created worldwide since the beginning of
2004. The BMW Group has recruited more than 1,700 employees for the new BMW
plant in Leipzig. Approximately half of these are currently working in various
BMW Group plants in Bavaria, preparing for their new tasks.

Numerous new models
"The BMW Group has achieved important milestones during the first half of 2004,
both in terms of expanding and renewing the group?s vehicle range and expanding
its presence on the international markets" stated Helmut Panke. Following the
start of sales of the BMW X3 and the BMW 6 Series Coupé in January, and of the
BMW 6 Series Cabrio in March, the new BMW 5 Series Touring became available in
May. The MINI One Convertible and the MINI Cooper Convertible have been
available since the beginning of July and the MINI Cooper S Convertible will
follow in August.

Helmut Panke: "With the launch of the new BMW 1 Series in September, the BMW
Group will move into the compact vehicle segment with a premium product." The
fourth generation of the BMW M5 will come onto the market in the course of the
year.

Sales market activities included the start of operations of the new sales
subsidiary in Hungary. In May, the BMW Group, together with its joint venture
partner, Brilliance China Automotive Holdings Limited, celebrated the official
opening of the joint BMW Brilliance Automotive plant in Shenyang (China).

Strong growth in the Automobiles business
In total, 321,010 BMW, MINI and Rolls-Royce brand cars were handed over to
customers during the second quarter 2004, 13.3% more than in the previous year
(second quarter 2003: 283,296 units). For the six month period, the sales
volume increased by 8.5% to 590,983 units (first half-year 2003: 544,869 units).

As a result of the growth in sales volume, revenues of the Automobiles segment,
at euro 11,515 million for the second quarter 2004, surpassed the equivalent
figure for the previous year by 19.4% (second quarter 2003: euro 9,647
million). On a six-month comparable basis, revenues increased by 11.8% to euro
21,259 million (first half-year 2003: euro 19,020 million).

At the same time, the profit from ordinary activities of the Automobiles
segment improved sharply: at euro 971 million in the second quarter 2004, the
comparable figure for the same quarter last year was surpassed by 26.4% (euro
768 million). The segment profit for the first half of 2004 was euro 1,713
million, 15.2% ahead of the previous year (first half-year 2003: euro 1,487
million).

273,429 BMW brand cars (second quarter 2003: 239,205 cars) were sold during the
second quarter 2004, an increase of 14.3%. 495,496 BMW brand cars were
delivered to customers during the first six months of 2004, an increase of 8.9%
(first half-year 2003: 454,972 cars).

The MINI has established itself as a premium car in the small car segment.
Almost 441,000 units have been sold since the MINI's launch in July 2001. The
sales volume during the second quarter 2004, at 47,402 units, surpassed the
figure for the previous year by 7.6% (second quarter 2003: 44,073 units).
95,168 MINI brand cars were delivered to customers during the first half of
2004, 5.9% more than during the corresponding period last year (first half-year
2003: 89,878 units).

The Rolls-Royce Phantom sets standards at the very top end of the luxury
segment. 319 Rolls-Royce motor vehicles were handed over to customers during
the first six months of 2004.

Motorcycles sales volume affected by model life-cycles
Despite continuing unfavourable market conditions, the BMW Group was able to
maintain its motorcycle business in the second quarter 2004 at the previous
year?s level. With 30,635 units sold, the sales volume was only marginally
(-0.2%) below the comparable figure for the previous year (second quarter 2003:
30,688 motorcycles). As expected, high demand for the new long-distance enduro,
the R1200 GS, contributed to this comparatively good performance. On a
six-month comparable basis, however, the model life-cycle induced impact of the
first quarter 2004 affected the overall sales performance. In total, 48,570 BMW
motorcycles were sold during the first six months of 2004, 5.9% less than in
the same period last year (first half-year 2003: 51,589 motor cycles).

Revenues of the Motorcycles segment amounted to euro 299 million in the second
quarter 2004, a fall of 9.1% compared to the same quarter last year (second
quarter 2004: euro 329 million). Revenues for the first half of 2004 amounted
to euro 581 million, 8.2% less than in the first half of 2003 (first half-year
2003: euro 633 million).

The profit from ordinary activities of the Motorcycles segment continues to be
affected by up-front expenditure and market introduction costs for new models.
The segment reports a profit from ordinary activities of euro 44 million for
the second quarter 2004, 24.1% below the previous year (second quarter 2003:
euro 58 million). On a six-month comparable basis, the segment result fell by
18.2% to euro 72 million (first half-year 2003: euro 88 million).

Financial Services remain on growth course
The BMW Group was able to continue to build on the positive performance of the
first quarter in the area of financial services. New business, with a total of
460,837 new contracts signed, rose by 15.4% compared to the same quarter last
year (second quarter 2003: 399,295 contracts). On a six-month comparable basis,
the number of new contracts increased by 11.7% to 859,918 contracts (first
half-year 2003: 770,054 contracts). The proportion of new vehicles financed or
leased by the Financial Services segment in the second quarter 2004 climbed by
0.2 percentage points to 39.6% (second quarter 2003: 39.4%).

The total business volume of the Financial Services segment, as disclosed in
the balance sheet at 30 June 2004, amounted to euro 31,429 million, an increase
of 14.3% compared to one year earlier (30 June 2003: euro 27,493). Compared to
the value of euro 28,647 million at 31 December 2003, the increase for the
first six months of 2004 was 9.7%.

The profit from ordinary activities of the Financial Services segment for the
second quarter 2004 improved by 15.3% to euro 136 million (second quarter 2003:
euro 118 million). The profit from ordinary activities for the six month period
improved by 19.1% to euro 268 million (first half-year 2003: euro 225 million).

* * *
The full interim report to 30 June 2004 can be downloaded from
www.bmwgroup.com/ir.

For questions please contact:

Corporate Communications

Eckhard Wannieck, Finance Communications
Telephone: (+49 89) 382-24118, Fax: (+49 89) 382-24418

Marc Hassinger, Business and Finance Communications
Telephone: (+49 89) 382-23362, Fax: (+49 89) 382-24418

Media Website: www.press.bmwgroup.com
e-mail: presse@bmwgroup.com

The full text of the news release and the report are attached.