Volkswagen AG UK Regulatory Announcement: 1st Quarter Results

WOLFSBURG, Germany--

                   Interim Report January-March 2004

- Operating profit in first quarter 2004 down 45.6 % against previous
    year to 329 million EUR owing to weakness of key markets,
    especially in the first two months, and more difficult exchange
    rate conditions

- Upfront expenditures for new products still at high level as a
    result of a large number of new model start-ups

- ForMotion program launched to enhance Group performance

- Demand for Golf rising strongly

- Unit sales again up in China

- Highly satisfying progress at Bentley

- Restructuring program in Brazil well under way

- Launches of new Skoda Octavia, SEAT Altea and Caddy Life

- New Audi A6 acclaimed by motoring press

- Financial Services Division continues to grow

- Volkswagen-led consortium acquires Dutch LeasePlan Corporation


January-March                           2004     2003   +/- (%)
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Volkswagen Group:

Deliveries to customers   '000 units   1,203    1,197   +  0.6
Unit sales                '000 units   1,273    1,218   +  4.6
Production                '000 units   1,316    1,280   +  2.8

Sales revenue            million EUR  21,947   20,698   +  6.0
Operating profit         million EUR     329      604   - 45.6
Profit before tax        million EUR      44      331   - 86.7
Profit after tax         million EUR      26      202   - 86.9


Automotive Division:

Cash flows from 
 operating activities    million EUR   1,374    1,533   - 10.3
Cash flows from 
 investing activities    million EUR   1,742    2,028   - 14.1
----------------------------------------------------------------------



In first quarter 2004 the unsatisfactory market conditions and the
exchange rate situation depressed results. The operating result was
also negatively effected, both in terms of expenses and income, by the
simultaneous launch of a large number of new Group vehicles, such as
the Audi A6, the SEAT Altea, the Caddy, and the Skoda Octavia.

The goal of the Volkswagen Group is to attain a leading position in
all relevant vehicle segments - that is, from the entry-level model
through to the premium segment. Thus with the continuation of our
product initiative, our aim in 2004 is once again to increase
worldwide deliveries versus the previous year. We do not, however,
consider an increase in volume at any price to be a desirable goal.

Even against a background of increasing price pressure, weakness in
the economic cycle, a general gloom with regard to economic prospects
- especially in Germany - and still unfavourable exchange rates, we
are nevertheless holding to our ambitious target for 2004 of
surpassing last year's operating profit before special items of around
2.5 billion EUR. The "ForMotion" program of measures initiated in the
first quarter will be a key tool for us in attaining that goal.

Wolfsburg, April 30, 2004
Volkswagen AG
The Board of Management

(The full interim report is available at http://www.volkswagen-ir.de )