BMW Group launches innovative paint technology.MINI plant Oxford pioneers the new system.

Munich/Oxford. BMW Group has introduced an innovative paint technology at its
MINI plant in Oxford. Known as IPP (Integrated Paint Process), this highly
efficient system is set to have a long-term impact on energy savings and
emission reductions in the painting of body shells. It also wholly meets BMW
Group's high quality standards for surfaces. The introduction of IPP is a key
factor in the expansion of Plant Oxford's production capacity to a mid-term
volume of up to 240,000 units.

Compared with previous technology, the Integral Paint Process completely
eliminates the primer coat application and oven stage. The primer function is
now transferred to one of two newly developed base coat layers. During this
"wet on wet" application of the two layers, the first layer integrates all the
functions and qualities of the primer-surfacer while the second base coat
covers the optical attributes such as colour, effect and depth. A clear coat is
applied on top of the base coat, as before. In this way the new IPP system
achieves the same high standards as conventional paint processes in terms of
optical and protective qualities.

As Gerhard Brückom, head of painted body shell technology at BMW Group,
emphasises: "IPP technology has been subjected to extensive analysis and
testing throughout its development. We know that it fully conforms to the high
optical and functional quality standards of our products. Its long-term quality
is guaranteed."

As well as enhancing the efficiency of the entire paint process, this
innovative process also supports BMW Group's environmental objectives by
dispensing with a solvent-based primer-surfacer. For Plant Oxford, IPP brings
energy savings and a reduction in emissions in the paint shop of well over 10%.

"Thanks to the introduction of IPP, we can now reallocate the space and
infrastructure previously taken up by primer coat application for the swift and
efficient installation of an additional base coat line," says Dr Anton Heiss,
managing director, BMW Group Plant Oxford. "Disruption to production arising
from the switch has thus been minimised to a few weeks. The new base coat line
will also help to ramp up the plant's production capacity in the mid-term to
around 240,000 units."

The introduction of the new technology and the installation of a second paint
application line at the Oxford plant's paint shop are part of an investment of
over 100 million GBP into the MINI production site following the announcement
by BMW Group in February last year. Since MINI began coming off the assembly
lines in 2001, the plant has always run at a far higher capacity than
originally anticipated; currently there is round-the-clock production on up to
seven days a week. As Dr Anton Heiss points out, "It was the ideal time to
update the paint shop and introduce IPP technology at the plant."

Plant Oxford, the sole production site for the MINI, is the first facility
within BMW Group's manufacturing network to use the new paint system. The
conversion of the entire colour range was completed in May 2006.

The introduction of IPP into other BMW Group production plants will be
considered on a case-by-case basis as and when paint shops need replacing or
refurbishing.