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Strategic management decisions
BMW Group Announces Future Strategic Realignment

@@start.t1@@--------------------------------------------------------------------------------   Disclosure announcement transmitted by euro adhoc. The issuer is responsible   for the content of this announcement. --------------------------------------------------------------------------------@@end@@


BMW Group Announces Future Strategic Realignment

@@start.t2@@. New strategy focuses on increasing value
      . RoCE target for Automobile segment is 26% as of 2012
      . Program approved to tap euro 6 billion in efficiency potential by 2012
      . Shareholders to benefit to a greater extent from company success
      . Automobile retail sales to rise to significantly more than 2 million units
         by 2020@@end@@

Munich - The BMW Group has set the course for a successful future with  its strategic realignment. In their joint meeting on Thursday, the Board of Management and the Supervisory Board of BMW AG approved the cornerstones of  the corporate strategy through 2020. The BMW Group's goal is to resolutely  maximize profitability and increase value over  the  long term.  The  Group's  strategic direction up to 2020 is clearly defined: The BMW Group is the world's  leading provider of premium products and premium services for individual mobility.

This strategic realignment includes, among other items, the following measures:

Capital-Efficiency Targets

The BMW Group intends to focus even more on the return on capital employed  when monitoring company performance. The company set   itself  the  following  interim targets: The BMW Group aims to achieve  a  return  on  capital  employed  before taxes (RoCE) of 26% in the Automobile segment as of 2012.  This  results  in  an EBIT-based return on sales of between 8% and 10% for the Automobile segment.

Program to tap into efficiency potential

In order to achieve earnings targets for 2012,  the  BMW  Group  will launch  a program to increase profitability. This will encompass all divisions  and  apply to both performance and costs. In terms of performance,  the  company  plans  to increase revenues and earnings per vehicle, while in terms of  costs,  it  plans to reduce development, production, sales and administration  costs  per   vehicle to achieve a cumulative efficiency effect of about 6 billion euros by 2012. The company intends to employ less  capital  than   today  when  generating further growth. To this end, the BMW Group intends to reduce its  capital expenditure ratio as well as capital employed per vehicle by 2012.

Growth Targets

The BMW Group is going to continue its product initiative. The  BMW   Group  aims to achieve retail sales of more than 1.8 million vehicles by 2012. By then,  the BMW Group plans to increase deliveries in the motorcycle  business  by  50%  to 150,000 units per annum. The company intends to increase  retail  sales  in  the automobile business to clearly more than two million vehicles by 2020.

Change in Dividend Policy/Significantly Higher Dividend Planned for 2007

The Board of Management is convinced that the BMW  Group's  continued strategic development will be successful over the long term. Therefore, the company plans to increase its dividend payout ratio substantially. The Board of Management will propose a first step for the business year 2007 to the Supervisory Board and the Annual General Meeting. In addition, BMW AG will keep the option of conducting a share buyback. However, this step is not planned for the next twelve months.

Funding out Pension Obligations

BMW AG will gradually fund out its pension obligations in  Germany   of  about  4 billion euros in three steps starting in 2008.

Natural Hedging and Purchasing in US Dollars to be Expanded

In order to strengthen independence from currency fluctuations,  the BMW  Group will strategically step up natural hedging as well as purchasing in  US  dollars in particular.

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Further details on the company's strategic realignment will be   communicated  at a press conference on Thursday, September 27, 2007, which  will  be  held  from 3:00 p.m. to 4:00 p.m., and during an analyst conference call from 5:00 p.m.  to 6:00 p.m.

@@start.t3@@end of announcement                                                 euro adhoc 27.09.2007 13:18:25

ots Originaltext: BMW AG
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Further inquiry note:
Bill McAndrews
Tel.: +49(0)89 382 22332

Marc Hassinger
Tel.: +49(0)89 382 23362

Branche: Automotive Equipment
ISIN:      DE0005190003
WKN:        519000
Index:    DAX, CDAX, HDAX, Prime All Share
Börsen:  Börse Stuttgart / regulated dealing
              SWX Swiss Exchange / stock market
              Börse Frankfurt / official dealing/prime standard
              Börse Berlin / official dealing
              Börse Hamburg / official dealing
              Börse Düsseldorf / official dealing
              Börse Hannover / official dealing
              Börse München / official dealing

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