Speech by Dr. Klaus Draeger - BMW Group Press Conference Auto Shanghai 2007

Ladies and Gentlemen -

Again, welcome to the BMW Stand.

Dr. Reithofer has just told you about the current situation at the BMW Group
worldwide and here in China.

I would now like to show you the products that will support our company's
success this year and in the years to come.

I am talking about

• the BMW X5
• the BMW 3 Series Coupe
• and the BMW 3 Series Convertible

- all of which are celebrating their China premiere today:

Let me start with the new BMW X5:

There can be no doubt that the X5 concept is a great success. We built almost
617,000 units of this model's predecessor, which was in very high demand
throughout its entire lifecycle. About eight years ago, BMW set a trend by
establishing the Sports Activity Vehicles segment with the first BMW X5. Since
then, many competitors have followed us into this segment. With the successor
model, we are again setting new standards. This new X5 model is the next
logical step in further developing our SAV concept. We are confident that this
new model will raise the bar once more in this segment.

The vehicle's improvements are highlighted in three main areas - driving
dynamics, functionality and exclusivity or comfort:

1. As regards driving dynamics, all core elements - such as the car body,
steering, chassis, engines and transmission - have been completely revised and
optimized.

2. The new BMW X5 offers considerably more room for passengers and luggage than
its predecessor. There is even an optional third row of seats, allowing the new
BMW X5 to accommodate up to 7 people.

3. The third and most important competitive edge is the exceptional comfort
that our customers can experience with the new X5. And its excellent quality
strongly emphasizes the vehicle's premium character.

In Chinese Mainland, more than 10,000 customers chose to purchase the X5
predecessor model. And we are convinced that the new BMW X5 will continue the
success of its predecessor, not only here in China but around the world.

Ladies and Gentlemen -

Let me now move on to the new 3 Series models. The 3 Series is the core model
series in our product portfolio. It embodies everything the BMW brand stands
for - sporting flair and agility, combined with elegant design and high-quality
product substance. The 3 Series is a true symbol of BMW's "sheer driving
pleasure".

With the BMW 3 Series Coupe, we are meeting our customers demand for a very
special vehicle - a car that has been designed for an active and dynamic
lifestyle, that makes an elegant impression and that is of top quality.

The BMW 3 Series Convertible is the car of choice for those who love open-air
driving. This model variant is the fourth generation of the open-topped,
two-door car based on the 3 Series. Having an 8.5 percent share of all BMW 3
Series vehicles sold worldwide, the Convertible is becoming more and more
popular.

In order to make this model even more comfortable for our customers all year
round, the new convertible is equipped with our first-ever retractable hardtop
made of light-weight steel. The three-piece roof only needs a few seconds to
open and close fully automatically. This can also be done by remote-control.

Ladies and Gentlemen -

Like all our vehicles, these new models offer innovative technologies,
state-of-the-art safety features and top-of-the-range premium quality. And
these products are developed according to our EfficientDynamics approach. Dr.
Reithofer has already told you about the range of measures we apply in order to
obtain the perfect balance between improving driving dynamics and lowering fuel
consumption considerably.

In Europe and the US, but also here in China, people are becoming more aware of
the importance of protecting our environment. However, efficient climate
protection can only be achieved on a global scale. Everybody has to make a
contribution - not only the automobile industry but also the industry as a
whole. And we at the BMW Group take our responsibility in this area very
seriously. For decades now, we have continuously reduced fuel consumption of
our vehicles, thus contributing to the efficient use of our natural resources.
EfficientDynamics is our approach towards reducing CO2 emissions while at the
same time guaranteeing the driving dynamics, comfort and safety of our vehicles.

This is why, in the long run, we champion the use of hydrogen as a clean and
CO2-neutral energy source of the future. Hydrogen has the greatest potential to
replace fossil fuels and to guarantee truly sustainable individual mobility.

The BMW Group is a company that assumes responsibility and always thinks of the
long-term perspective. In line with our sustainability efforts, we have created
a vehicle within the series development process that is based on a hydrogen
combustion engine:

The result is the BMW Hydrogen 7.

Ladies and Gentlemen -

The BMW Hydrogen 7 is a part of our automotive future that is already
demonstrating its suitability for everyday use.

What you see here is a luxury sedan that can be powered by hydrogen. We have
deliberately chosen the 7 Series for this development as it is our flagship
model for innovations.

The BMW Hydrogen 7 has a bivalent engine. This means that it can be powered by
petrol or hydrogen, depending on availability. Its overall range is more than
700 kilometres, and 200 of those kilometres can be powered by hydrogen. This
facilitates the use of the Hydrogen 7 in a world that does not yet provide a
sufficient hydrogen infrastructure. In our opinion, the bivalent engine is the
perfect solution for our times - paving the way towards a hydrogen era. At
present, we produced one hundred vehicles for everyday use. And select
customers have an opportunity to experience the H7 series first hand.

Ladies and Gentlemen -

The BMW Group has grown strong thanks to its long-term orientation and
visionary thinking.
Both the use of hydrogen as a fuel source and the BMW Hydrogen 7 are an
important part of our vision of the future. But there is more to come.

We will now give you a further outlook on possibilities for the future.

Thank you very much for your attention.