BMW MOTORRAD USA POSTS SECOND BEST YEAR IN COMPANY HISTORY

Woodcliff Lake, NJ - January 25, 2005... BMW Motorrad USA posted its second best year of motorcycle sales in the company's history. Total new retail sales of 13,316 units were reported for 2004.

BMW's motorcycle sales performance was largely due to increased sales of its R 1150 RT model, despite the fact that it was in its final production year and will be replaced with an all-new model in March. BMW's GS models accounted for the second highest volume, reflecting the popularity of the R 1200 GS, which has garnered several prestigious awards from the motorcycle press since its introduction in early 2004 - Cycle World's Best Open-Class Streetbike for 2004, and Motorcyclist's Motorcycle of the Year. The updated K 1200 LT models finished the year with the third highest volume and received further accolades including Cycle World's Best Touring Bike of the Year. The motorcycle's innovative electrohydraulic centerstand has received kudos from both consumers and the motorcycle press.

Collectively, sales of RT, GS and LT models accounted for 51% of BMW motorcycle sales in 2004. Several model BMW motorcycles reached the final phase of their production life cycle in 2004, including the R 1200 C, R 1200 Montauk, the R 1200 CLC, the K 1200 RS, the R 1150 RS and the R 1150 RT.

BMW Motorcycle Aftersales posted a record year with parts and accessories sales up 4 percent over 2003.

Always on the forefront of bringing new technologies to motorcycling, BMW Motorrad USA announced that several innovative technological features will be introduced on its models in the near future, including a wireless communication system between rider and passenger, as well as other motorcycles and a satellite radio that will be integrated into the current communication systems on models such as the K 1200 LT.