Shareholders Letter for 2000 Fiscal Year

The BMW Group released its annual Letter to Sareholders today, which
summarizes financial highlights for 2000. That Letter to Shareholders from
Prof. Dr. Joachim Milberg, chairman of the BMW Group's Board of Management, is
attached.

While this communication focuses on BMW's worldwide success, the U.S. market
made a strong contribution to the Group's overall strength and I'd like to
point out the following achievements.

* BMW sales continued to soar in 2000 and by year's end, BMW outsold Cadillac
to become the fourth largest luxury brand in the U.S.
* BMW of North America surpassed all previous records, reporting sales of
nearly 190,000 vehicles in 2000, an increase of 22 percent over annual sales in
1999.
* Sales of BMW motorcycles were at an all time high, too, with more than 12,000
units posted, an increase of close to 20 percent.
* Certified Pre-owned BMW sales increased 58 percent in 2000, to almost 45,000.
* BMW Financial Services showed strong growth, too, and now has $11 billion in
managed assets and more than 364,000 in automotive lending customers.
* BMW Bank of North America launched its personal banking services to thousands
of customers, including checking, savings, money market accounts, credit cards,
loans and certificates of deposit.
* Employment at the BMW Manufacturing Corp. factory in Spartanburg, S.C. is now
close to 4,000, including more than 1,100 jobs added in 2000. Another 300
associates will be hired in 2001 to keep up with the demand for the X5 sports
activity vehicle.
* Another expansion is underway at the Spartanburg factory, too. Last year,
BMW Manufacturing Corp. broke ground on a $300 million, 189,000-square-foot
addition to the body shop to prepare the factory for future BMW models.

Work to launch the MINI brand in this market is underway and in the next few
months, you'll receive information on the milestones that will bring us closer
to debuting MINI in the U.S., including the selection of an advertising
agency. Our dealer organization will begin to take shape when we name our U.S.
dealers in the coming months.

The MINI brand will be launched in the U.S. with MINI COOPER and MINI COOPER S,
sold by a network of approximately 70 dealers associated with the BMW brand.
MINI goes on sale beginning in Spring 2002, priced from about $18,000. Look
for more on the launch of this exciting brand.

Please download the attached file for the complete Shareholder Letter