BMW Motorrad acquires Husqvarna Motorcycles.

Munich. BMW will acquire the renowned motorcycle company Husqvarna Motorcycles.
Dr. Herbert Diess, General Director of BMW Motorrad, and the Italian
industrialist Claudio Castiglioni signed a contract on 19.07.2007 in Italy. The
contractual agreement will come into full effect upon final approval of the EU
cartel authorities. Both parties agreed that the purchase price was to remain
confidential.

For BMW Motorrad the acquisition of Husqvarna Motorcycles is a logical step in
enhancing the company's activities in the field of light, sporty motorcycles,
which has recently been reinforced with the new models of the BMW G 650 X
series. Commenting on BMW's decision to acquire Husqvarna Motorcycles, Diess,
General Director of BMW Motorrad, stated: "With the Husqvana models targeted at
the sporty competition, we will be able to extend the BMW Motorrad range to
include younger groups of customers as well as the entire off-road and
supermoto sector much more quickly and effectively than with our core brand
alone. This transaction also provides us with direct access to a worldwide
sales network in the off-road segment."

BMW Motorrad plans to continue operating Husqvarna Motorcycles as a separate
enterprise. All development, sales and production activities, as well as the
current workforce, will remain in place at its present location in the region
of Varese in northern Italy.

Just as BMW Motorrad, Husqvarna Motorcycles is steeped in tradition and one of
the most renowned motorcycle companies in the world. Motorcycles were initially
produced in Sweden from 1903 and in Italy from 1986. Today the company is one
of the leading suppliers of sporty off-road motorcycles. In the course of its
history, Husqvarna Motorcycles has achieved numerous international racing
victories including European and World Championship titles.

BMW Motorrad produced and sold over 100,000 motorcycles for the first time
(production: 103,759 units, delivery 100,064 units) in 2006. The production
program includes only large-volume motorcycles over 500 cc. BMW Motorrad is the
largest European manufacturer in this segment. In 2006, BMW Motorrad achieved
sales of 1,265 million euros, with pre-tax profits of 66 million euros. BMW
Motorrad employed an average of 2,816 staff worldwide in 2006.

Husqvarna Motorcycles is part of the Italian company MV Agusta S.p.A. and
produced some 12,000 motorcycles in the capacity range of 125 to 610 cc in
2006. The focus of the company's model program is on sporty off-road
motorcycles which are equipped solely with single cylinder engines. Husqvarna
Motorcycles employed a workforce of approximately 240 in Italy in 2006.