BMW Group agrees cooperation with SFT for new BMW "X3"

Munich. The BMW Group and SFT (Steyr-Daimler-Puch Fahrzeugtechnik AG & Co. KG),
Graz (Austria), a subsidiary of Magna Group, have signed a cooperation
agreement covering the development and manufacture of the new BMW "X3" Sports
Activity Vehicle. The detailed vehicle concept worked out by engineers from the
BMW Group was forwarded to Magna Steyr Engineering for series development.
Production will be taken over by Magna Steyr Fahrzeugtechnik in Graz. The
relevant contract was signed yesterday in Munich.

Through this cooperation on the realisation of the BMW "X3" project, the BMW
Group is optimising its own resources and pushing forward with its product
offensive. In Magna Steyr, the BMW Group has found a partner with many years'
experience in the realisation of vehicle projects. There has been in-depth
cooperation between the companies for years in the field of BMW four-wheel
drive technology in particular.

"Those who work alone can only accumulate; but those who cooperate
intelligently can multiply", says Professor Dr.-Ing. Joachim Milberg, Chairman
of the Board of Management of BMW AG. "Our cooperation with Magna Steyr
increases the speed and flexibility of our company and is a further milestone
in the consistent implementation of our product offensive."

The BMW "X3" is an expansion of the X family, and is an independent new
development. As with all BMW vehicles, some elements will use BMW module units.
All the vehicle components in the BMW "X3" will be signed off by the BMW
Group's Development Departments. In addition, core areas of competence, such as
design, engine construction, purchasing and customer service will remain the
sole responsibility of the BMW Group.

Dr.-Ing. Burkhard Göschel, Member of the Board of BMW AG, Development: "We are
making sure, right in the development process, that the "X3" will be a BMW
through and through. Components where BMW is a step ahead in terms of expertise
will continue to be developed by BMW engineers solely."

In order to integrate Magna Steyr in the worldwide BMW development network,
associates from Magna Steyr Fahrzeugtechnik will be trained in the BMW Group.
Further details about the product will be published as usual before the market
launch.

Magna Steyr Fahrzeugtechnik will be building a new assembly building in Graz
for production. The existing paint shop and shell construction facilities will
be modified. The total project-related expenses total comes to EUR 500 million.
Around 2,500 associates will be employed in production. The BMW "X3" will be
produced in Graz for markets throughout the world. The production plants in
Graz are designed for a capacity of over 300 vehicles per day. Production will
be adjusted flexibly to demand. It is intended that series production should
start in 2004.

Magna Steyr has regularly been awarded top marks in the famous quality surveys
carried out by J.D. Power & Associates. Magna Steyr Engineering will be
employing some 400 engineers on series development.

"The BMW order is a further recognition of our overall vehicle competence,
which is based - at the Graz site in particular - on
100 years of tradition and experience in automobile technology", explained
Siegfried Wolf, President & CEO, Magna Steyr, the parent company of SFT.

The BMW Group in Austria
The BMW Group is already important for Austria as a commercial location.
Overall, the BMW Group's involvement in Austria has already created over 8,000
direct and indirect jobs and led to the investment of around EUR 2 billion.

Last year, exports by the BMW Group in Austria exceeded imports by over 55%
(exports: EUR 2.2 billion, imports: EUR 1.4 billion). The largest engine
factory in the BMW Group today has been located in Steyr (Upper Austria) since
1979. In the year 2000, around 2,500 associates produced over 620,000 four and
six cylinder petrol and diesel engines, which is around two thirds of all BMW
engines built worldwide. At the same time, the location is also the diesel
competence centre within BMW.

The BMW Group's sales company in Austria, BMW Austria (founded in 1978), was
able to deliver 11,675 cars and 1,891 motorcycles to customers in 2000.