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Increase in Dividend, Bonus Shares and Increase in Capital at BMW

19 March 1998

Increase in Dividend, Bonus Shares and Increase in Capital at BMW

    Best year's result in the Company's history.  Net income Increases to
    DM1,246 million.  Board of Management and Supervisory Board propose an
increase in dividend to DM20 per ordinary share and DM21 per preference share
before a change is made in the Board of Management and the Supervisory Board.

    MUNICH, Germany, March 19 -- In 1997, BMW Group's result from
ordinary business activities, ie, pre-tax earnings, increased by DM868 million
to DM2,528 million (1996: DM1,660 million).  After tax, a net income of
DM1,246 million (1996: DM820 million) was achieved.  Thus, the result after
tax is 52 percent up on the previous year's and BMW achieved the best year's
result in the Company's history.  At BMW AG, with a tax rate of 50 percent,
net income amounts to DM629 million (previous year: DM554 million).  The Board
of Management and Supervisory Board propose to the Annual General Meeting on
May 12th 1998, a dividend payment of DM20.00 (1996: DM15.00) per ordinary
share with a nominal value of DM50 for the 1997 business year.  A dividend
payment of DM21.00 per preference share (previous year: DM16.00) is also
proposed.  As a result, a total of DM397 million (previous year:
DM297 million) are to be paid out to shareholders.
    BMW's workforce will also share in the increased result through programs
which enable employees to take part in the Company's success.
    The Board of Management and Supervisory Board also propose to the Annual
General Meeting that BMW's subscribed capital, currently amounting to
DM990 million, be increased, first of all, to DM1,188 million by transforming
DM198 million of reserves into subscribed capital, ie, by issuing so-called
bonus shares, in a ratio of 5:1.  Subsequently, the subscribed capital is to
be increased by a further DM99 million to DM1,287 million in a ratio of 12:1.
The new shares are to be offered at a price of DM1,100 per ordinary share and
DM740 per preference share.  All the new shares will be entitled to dividend
payments from July 1st 1998.
    The increase in capital is intended to significantly strengthen the
Company's equity capital base and as an adjustment to the Group's strong
growth in recent years.  The available funds should contribute towards
safeguarding future investment, on a continuing sound financial basis, in
particular in product ranges, sales structures and the development of markets.
The capital increase is taking place at a time and in a way that ensures
shareholders and Company sustained advantages.
    Dr. Andre Leysen will retire from the Supervisory Board with the close of
the 1998 Annual General Meeting.  Volker Doppelfeld, currently the member of
the Board of Management responsible for finance and business economics, is
proposed for election to the Supervisory Board.  Mr. Doppelfeld will retire
from BMW's Board of Management with the close of the Annual General Meeting.
At today's meeting, the Supervisory Board also appointed Gunter Lorenz to the
Board of Management.  From today, Mr. Lorenz will assume responsibility for
finance and business economics from Volker Doppelfeld.  To date, Mr. Lorenz
was Head of BMW's Financial Services.

SOURCE  BMW Group