BMW OPENS NEW PLANT IN LEIPZIG

More than 5,000 Jobs in the Medium Term. Initial Investment more than Euro 1.3
Billion. Festive Official Opening Ceremony in the Presence of the German
Chancellor.

Leipzig / Munich. In a special ceremony German Chancellor Gerhard Schröder and
the Chairman of the Board of Management of BMW AG, Helmut Panke, are opening
the new BMW Leipzig plant today in the presence of the Prime Ministers of
Saxony, Saxony-Anhalt, and Bavaria, as well as the Lord Mayor of the City of
Leipzig.

Pursuing a consistent product and market initiative, the BMW Group has
significantly expanded its product range in recent years to now no less than 10
model series. In the process customer deliveries have increased to more than
1.2 million units in the year 2004, with a further increase to 1.4 million
units planned by 2008. The new BMW Leipzig plant provides the capacities
required for this purpose: The plant is conceived for production in the medium
term of 650 cars a day, creating 5,500 jobs on the plant premises at full
capacity.

In the official opening ceremony Helmut Panke, Chairman of the Board of
Management of BMW AG, highlighted the significance of Germany for the
automotive industry: "Given all of the quality conditions we enjoy in Germany,
we remain in a position to build top products of the highest level in our
industry. This calls for good training, the right infrastructure, quality and
motivation of employees, quality in the supplier industry, a strong heritage,
and good, constructive cooperation with employee representatives at plant
level."

The BMW Group has invested a total of Euro 1.3 billion in the new Leipzig
plant. This initial investment was supported by the European Commission
granting regional assistance of Euro 360 million.

In addition to its involvement in Leipzig, the BMW Group has invested another
Euro 5.4 billion in its worldwide production network since 2001, the year in
which the decision was taken in favour of Leipzig. Approximately Euro 4.0
billion thereof has gone into the expansion and ongoing development of the
Group's existing plants in Germany.

Panke: "Although today we are focusing on our new plant in Leipzig with an
investment of approximately Euro 1.3 billion, one must not forget that since
2001 we have additionally invested three times this amount at other BMW Group
locations in Germany."

A significant reason for the choice of this location was the high degree of
flexibility achieved for efficient operation of the plant. "Together with the
representatives of our associates, we have developed the BMW Formula for Work.
Using innovative working time concepts, we are able to achieve maximum
flexibility and, accordingly, full capacity at the plant, thus at least in part
setting off the higher cost of production in Germany", stated Panke.

Appyling BMW's Formula for Work and the collective wage agreement in the
region, production times at the plant may be varied from 60 to 140 hours a
week. Panke: "This concept shows that intelligent planning and goodwill on the
part of all parties involved still allows successful business operations in
Germany even today."

In July 2001 the Leipzig/Halle Region was chosen as the site of BMW's new plant
among more than 250 options from all over Europe. The decision taken in favour
of Leipzig was based in particular on the fulfilment of the following criteria:

1. Economic operation and flexibility
2. Ideal qualities and location of the future plant premises
3. Availability of qualified and well-trained specialist employees
4. Utilisation of existing structures in terms of plants, suppliers and
logistics already
in place
5. Infrastructure for transport, supply and waste management
6. Connection to the BMW Group's sales and distribution network
7. Quick and smooth implementation process

The Leipzig/Halle Region proved to be the best candidate in fulfilling the sum
total of these criteria. Proximity to the BMW Group's car production plants in
Bavaria and the high density of first-class suppliers in southern and central
Germany were essential factors in favour of the location. Another strong point
speaking for the Leipzig/Halle Region was the large number of highly qualified
people.

BMW Leipzig plant is part of the BMW Group's production network with a total of
22 production facilities the world over. Accounting for 80,000 out of 106,000
associates worldwide, Germany remains the centre of BMW production.
International facilities in South Africa, the USA and China serve in particular
to develop more distant sales markets the world over. And reflecting the
tradition of MINI and Rolls-Royce, production of these vehicles is in Great
Britain.

For questions please contact:

Corporate Communications

Jochen Müller, Technology Communications, Production
Tel: +49 89 382-68778, Fax: +49 89 382-23927

Martina Hatzel, Business and Finance Communications, Human Resources
Tel: +49 89 382-24544, Fax: +49 89 382-24418