Ladies and Gentlemen, May I bid you a cordial welcome to the BMW Group on the occasion of the Paris Motor Show. Before dealing with the latest developments at BMW which we are presenting to you in Paris this year, let us first take a look at the current business situation at the BMW Group.

Although the available figures are still only estimates, we can indeed confirm that at the end of the third quarter there has been growth in all segments and in all regions. Both, the BMW and the MINI brand are growing, we are growing in Europe, in the USA and in Asia.

It is estimated that during the first nine months of 2002 over 800,000 automobiles - that is around 700,000 BMWs and over 100,000 MINIs - are expected to have been sold, an increase in sales of about 19 per cent. In the motorcycle segment worldwide sales are expected to have risen to 83,000 units, an increase of around seven per cent as compared to last year. We will inform you of the exact sales figures shortly.

As a result of this encouraging sales situation we are now able to confirm our previous forecasts for the whole year. This means that 2002 will be another good year for the BMW Group.

Should the economic climate remain as it is, we will sell more than one million vehicles of the BMW and MINI brands. This means that turnover and earnings will exceed the record high achieved in 2001.

Due to the enormous success in over 50 markets worldwide now we anticipate that we will increase the sales volume of 120,000 for the MINI brand during the current year by approximately a further ten per cent.

As a result of this high demand we have expanded the previous shift-work system at our MINI plant in Oxford.

What are the reasons for our continuing success, bearing in mind the economic situation on the world markets, which is not so easy at the moment.

The BMW Group has applied a clear and - as the results show - right corporate strategy by concentrating on the premium segments of the market. Therefore we shall continue to do what has made us successful in the past and today and, moreover, to be resolute in using new opportunities to carry on building on this success.

Growth and expansion are the aim of the BMW Group. We define the difference between growth and expansion as follows: To us growth means using our existing product portfolio to increase our success on all markets in which we participate.

Expansion is something which extends beyond this growth. To us expansion means breaking into new segments with new products or using our product portfolio to go into markets where we have not been present yet.

On the product side our strategy of growth and expansion signalizes that we will continue to be consistent in exploiting growth potential in our traditional segments. As we all know - the BMW 3, 5 and 7 Series are in a strong position.

Based on this core we aim to extend our product portfolio into new market segments. This is expansion exceeding the limits of growth. Examples of this are the new version of the BMW 6 Series which revives the brand tradition with the introduction of large coupés and convertibles, the BMW 1 Series and the BMW X3.

Furthermore, we are expanding in the small car segment with the globally successful introduction of the MINI product range to which we are adding new models such as a MINI featuring a diesel engine, for example, and from 2003 we are expanding in the luxury car segment, with the take-over of the Rolls Royce brand and with a completely new saloon.

With this product initiative we maintain exclusivity whilst focusing on further specific market segments. This means that the BMW Group will offer one hundred per cent solutions for the premium segment of the world market, and not just a little of everything. This is not our idea of the word premium. Above all, our product initiative deepens the "footprint" of the BMW brand. We will only break into new segments if we remain true to the BMW image, meaning that this segment must have a demand for a vehicle which possesses typical BMW characteristics.

The BMW brand stands for a promise of fascinating, individual automobiles and we shall continue to keep our promise in this respect. A part of this promise is never to build a boring BMW.

As far as the market is concerned, part of our strategy of growth and expansion is ongoing growth on established markets. Thus we continue to focus on the three main markets - Western Europe, the USA and Japan, which remain just as important to us as they have always been.

In addition to growth our market initiative is aimed at expanding to those new markets and regions which offer clearly visible growth potential for our premium business activities.

For this reason we shall make use of opportunities offered in the Asian-Pacific markets. Just last year we launched subsidiaries in Indonesia and in the Philippines and are currently further expanding our production plant in Thailand. Moreover, we have entered negotiations in China for a manufacturing license. While doing this we remain true to our concept of "production follows the market". It is our aim to be just as successful in China as we have been on other markets - for example in the USA.

Ladies and Gentlemen, and now I would like to present to you the latest example of our product initiative: as well as the new diesel models 730d and 740d added to our 7 Series model range, above all our new BMW Z4 is having its world premiere here in Paris.

This new Roadster from BMW adheres to a long company tradition which began way back in 1936 with the launching of the BMW 328, and continued with the BMW 507, leading us right up to the BMW Z1 and BMW Z3. The roadster segment is the one in which BMW brand characteristics become most evident.

Rarely has any other vehicle type influenced the BMW profile so decisively and as often as the Roadster has. Now the BMW Z4 is BMW's new embodiment of the open two-seater, representing at the same time the sporting side of our new design language.

The Z4 has all the attributes that visibly render it a genuine Roadster. Its shape - a long bonnet, a tailor-made cockpit, and a short tail - and, of course, a soft top typical of a Roadster, making it indeed a very special car of its class. Powered by our straight 6-cylinder engine it also offers extremely precise and safe handling, providing sheer driving pleasure.

Although this is sufficient to place the Z4 into the premium roadster segment, the car's superior characteristics and product quality are evident in numerous other details. For example the fastest fully automatic roof of its class, the electric power-assisted steering perfectly adapted to the vehicle's sporty character, or the use of high-quality materials in the interior.

The BMW Z4 is produced in our Spartanburg plant for delivery to worldwide markets. It is being launched in America this autumn, followed by the European markets in the spring of 2003.

We are convinced that with this new Roadster we have again succeeded perfectly in conveying those typical BMW brand qualities, much to the satisfaction of our customers. We firmly believe that the Z4 will set new standards in its segment.

Ladies and Gentlemen, may I present the new Z4.