GROUNDBREAKING FOR NEW HUSQVARNA MOTORCYCLES HEADQUARTERS

New Development and Management Center to Open May 2009

Woodcliff Lake, NJ - July 4, 2008... A groundbreaking ceremony for a new
Development and Management Center of Husqvarna, the motorcycle manufacturer
owned by the BMW Group, was held at Cassinetta di Biandronno (Varese), Italy.
The new headquarters will supplement the motorcycle manufacturer's current
facility at the same location and is expected to open in May 2009.

Presiding over the ceremony were Friedrich Eichiner, Member of the Board of
Management of BMW AG; Hendrik Von Kuenheim, President of BMW Motorrad; and
Rainer Thoma, President and Managing Director of Husqvarna Motorcycles, as well
as church and government representatives and Husqvarna staff members.

An innovative project that demonstrates commitment to the brand

The new headquarters will encompass approximately 455,000 square feet of total
floor space, including the new construction, which totals an area of more than
67,000 square feet where a 6,500 square-foot building previously existed.

The project involves the use of techniques that keep construction time to a
minimum, while still ensuring high architectural quality and an optimal working
environment. The structure will incorporate the most advanced systems of
thermal and acoustic insulation in accordance with energy-saving regulations,
and will be fitted with a system of solar panels to provide hot water
throughout the building.

The larger facility will facilitate an increased worldwide production capacity
of 40,000 bikes per year.

"The development of Husqvarna Motorcycles' Headquarters at Cassinetta di
Biandronno" declared Rainer Thoma, President and CEO of Husqvarna Motorcycles,
"shows how committed we and the BMW Group are to investing in the future of
Husqvarna Motorcycles.

The New Cassinetta Headquarters

The new corporate headquarters will bring Husqvarna Motorcycles' various
departments together to facilitate product development and integration of all
the functional units involved in the production of the entire range of
Husqvarna Motorcycles. The facility is also designed to accommodate forecasted
growth of the brand in the future.

The Engine Division and roller test benches will be located on the ground floor
(encompassing 28,000 square feet) in the center of the building. The
surrounding area is devoted to the workshop producing prototypes and racing
bikes. Another section is reserved as a training center for technicians in
Husqvarna's after-sales support network.

Adjacent to each other on the first floor (24,500 square feet) are the Styling
Center (8,100 square feet) and the Development Division (8,700 square feet),
which will offer an optimal work environment for employees. The Purchasing
Department and the Market Research Department are also juxtaposed on the same
floor, both in close proximity to the Development Division. This arrangement
places key departments at the heart of the firm's commercial activities,
maximizing the ability to control functionality, quality and cost, in close
collaboration with suppliers.

The northern part of the second floor (6,400 square feet) will be occupied by
senior management and administration offices. Next to those offices will be an
open space on the roof of the Development Division for new model presentations.

The main entrance of the building will house a 3,500 square-foot Husqvarna
Motorcycles showroom.

Husqvarna Motorcycles. Tradition on two wheels since 1903.

Husqvarna Motorcycles, which was purchased by the BMW Group in October 2007,
is well-known and highly respected in the off-road motorcycle market. Its
heritage is inextricably linked to competition riding (72 prizes in Moto Cross,
Enduro and Supermotard contests). Husqvarna motorcycles have been produced at
the Varese facilities since 1987.

Husqvarna Motorcycles NA, LLC

Husqvarna Motorcycles NA, LLC is part of BMW (US) Holding Corp., the BMW Group'
s sales headquarters for North, Central and South America, which is located in
Woodcliff Lake, New Jersey. Husqvarna Motorcycles NA, LLC announced a return
to off-road racing competition earlier this year, after reaching an agreement
with Scott Summers, Inc. to provide a professional race team to compete in the
GNCC Racing Series. The riders pilot 2008 Husqvarna TXC 450 off-road models in
the GNCC's XC1 class.

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