SPEECH OF TOM PURVES, BMW PRESS CONFERENCE, NEW YORK AUTO SHOW, APRIL 4, 2007

- Check against delivery -

Good afternoon Ladies and Gentlemen,

As both Rich Brekus and Tom Plucinsky indicated, our product initiative
continues relentlessly - the 5 Series is just one example of this plan.

Today, we have not less than eight model series and beginning in 2008 we will
add another: the BMW X6.

Ladies and Gentlemen, this is the first major message of today. I can confirm
that the X6 will be built in our Spartanburg plant. We are proud that we will
be producing another BMW in South Carolina, not only for our US customers but
for those all over the world.

And, our initiative continues - between 2005 and 2009, the BMW Group is
investing a total of 19 billion euros, or about 25 billion dollars, in the
expansion of our business activities. Naturally, the focus will be on new
models. In 2006 alone we invested 2.5 billion euros, or about 3.3 billion
dollars, in research and development - that's 5.2 percent of our revenues
worldwide and one of the largest investments in innovation in the automotive
industry.

Great products are the lifeblood of BMW. In fact, by 2010, we will launch a
total of 30 new BMW models.

If product satisfies a growing number of customers, investment in the market
confirms our conviction about the future opportunity the US offers.

We have evolved from being an importer into a significant manufacturer,
employer, exporter and partner with US based suppliers. That started eleven
years ago when we began production in Spartanburg. Our investment to date is
over $3 billion and our US suppliers have invested another $2 billion.

The X5 and the Z4 Roadster and Coupe are only built in the US - and are being
exported to more than 120 markets around the world. It may surprise you to know
that BMW is the leading auto exporter from the US to non-NAFTA markets.

And our investment continues: We are currently preparing this plant to handle
the production of the new X6. We expect to increase capacity in Spartanburg
from its current 140,000 units a year to about 200,000 within the next few
years.

Activities at other U.S. facilities include construction of a $100 million
expansion which will add almost 220,000 square feet of office and training
space to BMW's headquarters campus in Woodcliff Lake, New Jersey - that is
about the size of five football fields. The complex will house a Training
Center and an Engineering Institute.

With the exception of Spartanburg, this is BMW's largest capital investment in
the United States.

Part of BMW's success is the leading edge technology we develop for our
products. We see and embrace the possibilities, the innovations, and the
solutions. And often, new technologies can solve problems that some think are
unsolvable. If you go back long enough think of front wheel brakes, then ABS,
now brake energy regeneration.

We don't pursue technology for its own sake, but to provide our customers with
the vehicles that exceed their expectations from BMW while meeting our social
and environmental responsibilities. This means providing outstanding
performance and handling while increasing fuel economy and reducing emissions.

We call this strategy EfficientDynamics. This is the second major message
today.

We view EfficientDynamics in the following three time frames.

In the present, the optimization of our engine technology plays a key role.
Since 2001, we have introduced the fully-variable valve control VALVETRONIC in
the vast majority of new BMW gasoline engine families. The 3 and 5 Series
deliver up to 17 percent greater power with up to 10 percent better fuel
economy than their predecessors. No other manufacturer from any continent
deploys such clever internal combustion engine technology.

But EfficientDynamics today is not limited to efficient engines: It is also
about using lightweight technology for the chassis, and the suspension. By
using aluminium, we minimise the unsprung masses while at the same time make
the components extremely strong and stable. The result: supreme agility,
safety, comfort - and less fuel - in every situation.

With advances like these we have already increased the mileage of the BMW fleet
substantially. Between 1990 and 2005 mileage increased by more than 22 percent
for BMW cars. In fact "Environmental Defense", a non-profit US based
environmental group, stated in their last report that BMW had the biggest
reduction in its fleet average CO2 emissions of all major automakers between
1990 and 2003.

In the medium term, diesels and hybrids will be additional elements of
EfficientDynamics.

BMW has a long and successful history when it comes to diesel engine technology
because a BMW diesel has to exceed our customers' expectations for performance.
As far back as 1983 we introduced the first turbo-diesel in the 524TD. It gave
birth to a completely new class of cars called "performance diesels". Today,
about two-thirds of BMWs in Europe are diesel powered and worldwide the figure
is well over 40 percent.

For the United States a twin-turbo diesel will arrive as soon as next year.
And, when it comes to fuel consumption and emissions reduction, the highly
efficient BMW diesel vehicle can definitely bear comparison with a hybrid
vehicle without losing trunk space or having an uncertain future residual
value.

In fact, according to officials at the U.S. Environmental Protection Agency,
America could save up to 1.4 million barrels of oil per day, an amount
equivalent to the oil we currently import from Saudi Arabia, if one-third of
U.S. cars, pickups, and SUVs were diesel-powered.

By the way: As Chairman of the Alliance of Automobile Manufacturers I believe
that there needs to be a national, federal, economy-wide approach to addressing
greenhouse gases effectivly. The decision by the US Supreme Court two days ago
says that the U.S. Environmental Protection Agency will be part of this
process. The Alliance looks forward to working constructively with both
Congress and the administration, including EPA and the National Highway Traffic
Safety Administration, in developing a national approach.

Next to the diesel, hybrid technology is another interesting possibility for
raising the efficiency of traditional power trains in medium term. Therefore,
we are cooperating with General Motors and DaimlerChrysler on hybrid
technology. Each company will share in the development of the hybrid
components.

You can be assured of one thing: Our application of the hybrid system will
certainly become the ultimate driving machine among hybrids.

However, for the long term, we consider hydrogen in an internal combustion
engine the most sustainable solution. We determined this in the early eighties
and have been working on it ever since.

The BMW Hydrogen 7, on display here today, can run either on hydrogen or
gasoline and switch seamlessly between the two. The first 25 cars are now
arriving in the US and we will soon announce which opinion leaders will be test
driving them.

And again: Performance and the reduction of emissions are not mutually
exclusive. In the case of the Hydrogen 7, it means a car that is capable of
running 143 miles per hour top speed yet emitting virtually nothing but water
vapor. This is what we consider to be the ultimate driving machine among green
cars.

The fact that the BMW Hydrogen 7 has been nominated for the "World Green Car of
the Year" award shows that we can deliver against such a promise.

So there you have it. The key to BMW's continuing success is an ongoing flow of
great products powered by the best engines the Bavarian Motor Works can
create. And this strategy serves one distinctive aim: To deliver an
enthusiasts' product to enthusiast customers whose expectations are also
touched by the need for practicality in today's life.

With this plan in mind I am confident that we will grow again this year -
making 2007 the 16th consecutive year of sales increases in the US.