CONSTRUCTION BEGINS ON NEW TRAINING FACILITY

ONTARIO, CALIFORNIA, AUGUST 18, 1999. Construction began today on BMW Group's
31,000-square-foot training facility on Dupont Street in Ontario, California.
The $6.5 million project will house all technical and non-technical training
for BMW and Land Rover personnel in the Western United States. The project
also includes new Western Regional offices for BMW of North America, Inc. in
adjacent space at the Group's existing Parts Distribution Center.

When completed next spring, 26 people will join the 68 people who currently
work at the Parts Distribution Center, which houses approximately $40 million
in BMW and Land Rover parts.

"The BMW Group has experienced record sales and with exciting new products on
the horizon for both BMW and Land Rover, our operations need to be able to
accommodate more growth," said Jim Ryan, Senior Vice President and General
Manager of BMW's Western Region.

BMW just reported the best first seven months ever with sales of 91,401, an
increase of more than 17 percent. Land Rover's U.S. sales are up 33 percent
year-to-date, and also reported the best first seven months in company history.

"The new training center will integrate BMW and Land Rover training in the
Western United States. BMW outgrew its facility in West Los Angeles and
needed a new home for its training operations. We're happy in Ontario - we've
been here for nearly 12 years - and it made sense to relocate here," explained
Hans Duenzl, Vice President of Aftersales and Engineering for the BMW Group.

The new training facility will be the base for all training for western BMW and
Land Rover dealer personnel. It will house six technical training classrooms
and fully-equipped automotive workshops and two non-technical training
classrooms for sales, service, parts, and management training programs. The
new training center will be able to accommodate up to 80 students at one time.

Additionally, the new building will provide workstations for BMW motorcycle
fleet preparation and a 2-acre off-road demonstration course for BMW and Land
Rover vehicles.

The BMW Group Parts Distribution Center in Ontario opened about 12 years ago
and serves BMW and Land Rover retailers west of the Mississippi. The 200,000
square foot facility houses 65,000 different parts numbers, an inventory of
about $40 million.

Ontario Mayor Gary Ovitt welcomed representatives from BMW. Land Rover and the
various contractors, builders and architects, noting that Ontario continues to
be recognized as an excellent place to work and live. "With our airport
proximity, interstate access, friendly business climate and exceptional
weather, Ontario offers what many cities can only dream of," said Ovitt. "We
are excited to have BMW and Land Rover growing here and look forward to sharing
in the benefits from BMW Group's commitment to southern California."

Design architects for the project are S + P Planungsgruppe, Berlin with
American counterparts Anshen and Allen of Los Angeles. WPW Ingenieure of
Saarbruecken is the planning firm, along with Ove Arup + Partners of Los
Angeles.

Other BMW facilities in California include the Vehicle Processing Center at the
Port of Hueneme and the adjacent BMW Group Engineering and Testing Center,
which is also due for completion next spring. BMW Group's

wholly-owned design studio, Designworks USA, is located in Newbury Parkand
last year, the Group opened the BMW Technology Office USA in Palo Alto.

The biggest BMW Group site in North America is its manufacturing plant in
Spartanburg, S.C., where BMW vehicles are built for worldwide export. It
employs 2,000 people, a figure that will grow to 3,000 when a $600 million
expansion is completed late this year. When complete, the manufacturing plant
will have doubled in size, to 2.1 million square feet. Reinforcing the global
nature of the BMW Group, BMW Manufacturing Corp. is the first plant in the U.S.
to export the majority of its production (to 120 countries).