Profit before tax up by 12.0% before exceptional gain

Pre-tax profit up by 57.7% to euro 1.296 billion
Earnings and sales volume outlook for full year confirmed

Munich. The BMW Group has started 2006 with record quarterly earnings. The number of cars sold in the first three months also represented a new high. As forecast, the BMW Group is thus heading for the best year in its corporate history: "We are well on our way to achieving our target of a group profit before tax of 4 billion euros", stated Helmut Panke, the Chairman of the Board of Management of BMW AG, on Wednesday in Munich. "We also expect earnings to increase in 2006 at an operating level excluding the exceptional gain from the exchangeable bond on Rolls-Royce plc shares". In volume terms, the BMW Group as previously reported aims to achieve a new sales volume record.

In addition to the sharp increase in sales volume, the first quarter was also affected by external factors and a one-off gain of euro 375 million on the settlement of the exchangeable bond on Rolls-Royce plc shares. Group revenues rose to euro 11,618 million (first quarter 2005: euro 10,357 million), an increase of 12.2%. Adverse currency effects and high raw material prices in the first three months continued to have a negative impact on earnings; these adverse factors were compensated, however, to a large degree by on-going efficiency improvements.

Profit before tax increased by 57.7% to euro 1,296 million (first quarter 2005: euro 822 million). Excluding the gain on the partial settlement of the exchangeable bond on Rolls-Royce plc shares, the pre-tax profit rose by 12.0% to euro 921 million, and was thus also well ahead of the previous year's result at an operating level.

The profit after tax rose by 80.6% to euro 948 million (first quarter 2005: euro 525 million). The gain on the settlement of the exchangeable bond on Rolls-Royce plc shares (reported in the Reconciliations segment) had a more pronounced impact at this level since there was no tax impact. Earnings per share of common and preferred stock increased to euro 1.44 (first quarter 2005: euro 0.78).

As a result of the jump in earnings, the pre-tax return on sales increased from 7.9% to 11.2%. Excluding the one-off gain, the return on sales remained stable at 7.9%. Cash flow continued to grow dynamically, rising by 25.5% to euro 1,631 million (first quarter 2005: euro 1,300 million). Operating cash flow was up by 9.4% to euro 1,221 million (first quarter 2005: euro 1,116 million).

Currency effects and high raw material prices will continue to have an impact on business development in the current year, however to a lesser degree than in the previous year. This negative effect is partly attributable to the fact that less favourable currency hedge rates are in place than in the previous year; the effect will be felt mainly in the first half of 2006. The BMW Group will counter this development by means of continuous efficiency and productivity improvements. The targeted sales volume record and improvements in the product mix will also make a positive contribution to earnings. "In terms of operating results, the current year, excluding the one-off gain, will therefore be the best year in the company's history to date", underlined Dr. Panke.

"We will continue our profitable growth course in the coming years and generate above-average returns compared to the industry as a whole", continued Dr. Panke.

Number of jobs virtually unchanged

The BMW Group had a worldwide workforce of 106,179 employees at the end of the first quarter 2006, 0.1% more than one year earlier (106,033 employees). Compared to 31 December 2005 (105,798 employees), the workforce increased by 0.4%.

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WTCC - Rounds 3 And 4 - Magny-cours - Race
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2006 FIA World Touring Car Championship (WTCC)

Rounds 3 and 4 - 29th/30th April 2006 - Race

BMW secures two one-twos in the WTCC rounds at Magny-Cours.

Magny-Cours (France), 30th April 2006. Dirk Müller (GER) and Andy Priaulx (GBR) secured one win each in the third and fourth FIA World Touring Car Championship (WTCC) rounds held at Magny-Cours, with Jörg Müller (GER) finishing runner-up in both races, thus completing the great BMW result. The first race at the "Circuit de Nevers" was won by BMW Team Germany driver Dirk Müller, followed by his team-mate and SEAT's Rickard Rydell (SWE), while the day's second sprint race was dominated by BMW Team UK driver Priaulx. The reigning World Touring Car Champion shared the podium with Jörg Müller and Jordi Gené (ESP).

In the first round, Priaulx came eighth, thus scoring a point and clinching pole for the second race. Thanks to these results, BMW took the lead in both the Drivers' and the Manufacturers' Championships. Priaulx, the new championship leader, leaves Magny-Cours with 21 points under his belt, Yvan Muller (FRA) holds second place and Jörg Müller is third. In the manufacturers' rankings, BMW has scored a total of 54 points and holds a six-point lead over SEAT. At the end of the day, the BMW national teams successfully continued their impressive run of victories at the 4.411 kilometre track with the BMW 320si WTCC, with the past eight races Magny-Cours having been won by BMW drivers.

At cool temperatures (13°C) and in front of more than 50,000 spectators, the BMW Team Germany drivers laid the basis for their success right at the start of round one. From his third position on the grid, Jörg Müller rocketed away between Rydell und Gabriele Tarquini (ITA) to take the lead, with Dirk Müller making an even bigger leap: The 30-year-old gained for positions and started to chase his team-mate from second place. The pairing was involved in a race-long battle, with Dirk Müller prevailing in lap ten: He passed his team-mate and defended the lead until crossing the line of the twelve-lap race as the winner. It was his first win in 2006 and the fourth WTCC victory of his career. Priaulx also drove a flawless race to finish eighth, while the BMW Team Italy-Spain drivers weren't that lucky. Alessandro Zanardi (ITA) was hampered by a problem of the clutch system specially adjusted to his needs, lost a lot of ground already in the opening stages and had to settle for 14th place. His team-mate, Marcel Costa (ESP), was involved in an early accident with Salvatore Tavano (ITA), resulting in his retirement.

In round two, Priaulx defended his lead from the start to the chequered flag. The win in France was already the reigning champion's second triumph in 2006 as he also had won the first round of the season opener at Monza. Behind the winner, the crowds could witness a turbulent race. During the start, Jörg Müller leaped from seventh to fourth place, while Dirk Müller spun when trying to avoid two colliding SEAT drivers and had to retire. Zanardi and Costa also were forced into early retirement on lap one. Following a great start, Zanardi was fifth but then he spun in the turmoil. A short time later, the Italian was battling it out with Costa when an opponent moved between the pairing and pushed both BMW Team Italy-Spain drivers off the track. BMW driver Stefano d'Aste (ITA) was the best privateer.

Reactions:
Dirk Müller (BMW Team Germany):
"First of all, I have to praise my team. The crew worked on my car all night long as I wasn't completely happy with it. And their effort paid off. Following the warm-up, I knew that I would contest the races with a perfect car. My start into race one was very good and I succeeded in passing several opponents right away. Afterwards, I was racing close behind Jörg, and we were involved in a fair battle. When I saw the chance of overtaking him I made use of it. In the second round, Peter Terting and Rickard Rydell were battling it out with one another. Suddenly, Rickard went sideways in front of me, I had to lift, was massively hit from behind and spun. That was the end of my race."

Andy Priaulx (BMW Team UK):
"Quite obviously I am delighted with the win and the fact that I could gain the championship lead. Due to my 45 kilos handicap weight, I had expected to experience a kind of a difficult weekend. Had somebody told me that I was going to win a round and finish eighth in the other I'd loved to accept this offer. Now, I have to take even more weight aboard my car for my home race at Brands Hatch, but I'm looking forward to it nevertheless. It will be a tough battle."

Jörg Müller (BMW Team Germany):
"To win the World Championship it's not necessary to make it to the podium's highest step in every race. It's far more important to consistently score as many points as possible. I'm very satisfied with the weekend and had great confidence in my car. But then, Dirk succeeded in closing in on me in round one, and when I made a shifting mistake, he used the opportunity and passed me. But the battle was big fun, nevertheless."

Charly Lamm (Team Manager, BMW Team Germany):
"I'm relieved that this weekend turned out to be successful for us. It was truly vital for the team to leave Magny-Cours with such a sense of achievement under its belt. Jörg delivered in fine style, thus again proving that Magny-Cours suits him well. Dirk used his chance in race one and deservedly secured his maiden win of the 2006 season. Unfortunately, he experienced some bad luck in race two. Now we have to confirm this performance in the coming races."

Stats and results Magny-Cours:
Circuit / Date
Circuit de Nevers / 30th April 2006
Lap / Race distance
4.411 km / 52.93 km (12 laps)
Pole position 2006
Gabriele Tarquini (SEAT), 1:49.306 minutes
Winners 2006
Race 1: Dirk Müller (BMW Team Germany) Race 2: Andy Priaulx (BMW Team UK)
Fastest lap 2006
Race 1: Dirk Müller, 1:50.650 minutes Race 2: Andy Priaulx, 1:50.859 minutes

Manufacturers' Championship:
1st BMW (54 points), 2nd SEAT (48), 3rd Alfa Romeo (28), 4th Chevrolet (26).

Race Calendar:
2nd April - Monza (ITA), 30th April - Magny-Cours (FRA), 21st May - Brands Hatch (GBR), 4th June - Oschersleben (GER), 2nd July - Curitiba (BRA), 30th July - Puebla (MEX), 3rd September - Brno (CZE), 24th September - Istanbul (TUR), 8th October - Valencia (ESP), 19th November - Macau (CHN).

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April 21, 2006 The All New 2007 Bmw 3 Series Coupe
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Woodcliff Lake, NJ - April 21, 2006… Introducing the latest expression of individual style - the all-new BMW 3 Series Coupe. With totally new looks, the newest BMW Coupe once again sets the benchmark for elegant design, luxury and value. In true BMW tradition, it also establishes a new standard of performance and driving dynamics with the introduction of an exceptional engine: the first inline six-cylinder with twin-turbochargers, high-precision fuel injection, and an all-aluminum crankcase.

The performance potential of this new 300 horsepower engine ensures that the 335i Coupe offers a significant improvement in performance while maintaining a level of efficiency for which the BMW 3 Series is renowned. The 335i Coupe will be joined in the U.S. by the 230 horsepower 328i Coupe.

In addition to the standard six-speed manual, both models will be offered with an available six-speed STEPTRONIC automatic transmission. Designed for responsiveness, the new automatic enhances driving dynamics without sacrificing fuel efficiency.

An additional dimension of driving dynamics, with the benefit of outstanding traction, will be offered with the introduction of BMW's xDrive all-wheel drive. BMW xDrive is the most sophisticated and responsive all-wheel drive system on the market. It has proven its merits, in terms of agility and safety, in the ten models currently offered with xDrive in the U.S. Beginning this fall these merits will become available to Coupe drivers for the first time.

The premium character of the newest BMW Coupe is recognizable from the very first glance. Over and above the basic shape of the car and its elegant lines, the graphic design of the headlights, the detail of the rear taillights, the interior and even the exterior mirrors were specifically crafted for the new Coupe. These unique design elements reflect the unique character of this elegant and sporty new car.

The buyer who chooses a Coupe wants a car that satisfies their demand for elegant looks as well as driving dynamics. With all this in mind, BMW engineers and designers set out to create a unique yet unmistakable blend of design, features and - most particularly - driving pleasure.

Designed to reflect performance and elegance in the tradition of BMW Coupes

The new Coupe is unquestionably a BMW 3 Series. Yet despite its close technical ties to the Sedan and Sports Wagon, the new BMW 3 Series Coupe is unique in its design details. A genuine BMW from every angle, the new Coupe is an individualist through and through.

The character of any coupe is reflected in its profile. On the new BMW 3 Series Coupe the profile is unmistakably BMW. The long hood reflects BMW's adherence to its tradition of inline six-cylinder engines. The long wheelbase, the passenger compartment set back as well as the low, sleek roofline which slopes gently into the trunk, are all characteristic of BMW Coupes.

In addition to the classic proportions, the shoulder, character and sill lines serve to enhance the sleek appearance. Both the shoulder line and character line stretch uninterrupted to the back of the car, allowing one's eye to move quickly and smoothly from front to rear along the entire length of the car. The sill line on the lower edge of the door also flows into the front and rear air dams, reinforcing the dynamic nature of BMW's newest Coupe.

The combination of lines flowing into one another reflects the performance potential. While the shoulder line rises slightly but consistently from front to rear, the character line flows in a long, stretched arch all the way from the front fender to the taillights. As the sill line, by contrast, moves up slightly to the rear in a slow and gentle curve, the distance between the character and sill lines becomes smaller around the rear wheel arches. The flare of the fender around the wheel also serves to give the character line extra tension in both an upward and outward direction.

The front view also shows a significant distinction from the 3 Series Sedan and Sports Wagon. The contours of the hood as well as the design of the front air dam and headlights give the new BMW 3 Series Coupe a particularly low and sporty look. The powerdome on the hood foretells the performance potential which lies beneath. Its lines follow a powerful silhouette extending all the way from the A-pillars to the outside corners of the BMW kidney grill.

The kidney grille, a typical feature of every BMW, stands out from the surfaces around it. Interaction with the three-dimensional kidney frame creates a look of power and unique style.

The headlight units on the new BMW 3 Series Coupe also have a unique look. With the hood extending beyond the headlights as such, the characteristic four round headlights appear to have been cut-off at the top creating a sense of powerful, concentrated focus.

The new 3 Series Coupe will come standard in the U.S. with xenon adaptive headlights, accented by BMW's corona light rings. The corona light rings not only serve as daytime running lights, but also draw attention to BMW's characteristic four round headlights, making this new Coupe instantly recognizable as a BMW, day or night.

The design of taillights is also unique to the new 3 Series Coupe. Integrated flush into the body of the car, the lights are split into two sections and extend all the way up to the trunk lid, blending with the character lines from the side profile. Horizontal LED taillights give the car an unmistakable look at night. The horizontally flowing lines accentuate the wide track and low stance of the new Coupe.

The designers' objective was to give the new 3 Series Coupe a balanced and harmonious look. The traditional "Hofmeister kink" at the bottom edge of the C-pillar now extends at an even more distinct angle into the shoulder line. To further accentuate this flow of lines, the window accent surround is now made in one single piece.

The exterior mirrors have been specifically designed and matched to the unique character of the new 3 Series Coupe. The contours of the mirrors reflect the profile lines while the mirrors blend seamlessly with the car's overall design.

The emphasis on individual style, dynamic performance and exclusivity continues within the interior. Horizontal lines dominate the surfaces on and around the instrument panel which blend with the lines of the center console and door panels to give the interior a light but dynamic feel. In true BMW fashion the instrument cluster and key controls are angled toward the driver. Controls for the climate control as well as the audio and navigation systems are within easy reach of the front passenger. Given that the new Coupe is a four passenger car, the rear seat passengers are treated to a storage compartment between the rear seats.

An elegant ambience is created in the interior by special lighting and switches with a premium look and feel. The light contour edge on the door and side panels, which runs from the door pillar all the way to the rear passenger area, creates a particularly warm, indirect lighting effect. Controls and switches used frequently by the driver and passengers such as the door handles and gearshift are finished in high quality metallic trim for an elegant appearance as well as a premium tactile experience.

Full Press Release: Read and Discuss it here!