Produced by sisters Meike and Alexandra Kordes of the Berlin-based production outfit Kordes & Kordes Film, the film also picked up the Lola for Best Lead Actress for Monika Bleibtreu, who turned 63 on the day of the ceremony.
Sold to 40 territories by Beta Cinema, Four Minutes has taken over $2.2m (Euros 1.6m) for Piffl Medien at the German box office and will be presented in Cannes next week as part of the New German Films market screenings.
Meike Kordes was also selected as this year's German 'Producer on the Move' and will be coming to Cannes to pitch Kraus's next feature project, the $8.1m (Euros 6m) European co-production Poll, to potential partners with the Lola's $0.7m (Euros 500,000) prize-money now in the bank.
Producer Bernd Eichinger couldn't hide his disappointment that the 900 German Film Academy voters only picked Tom Tykwer's adaptation of Patrick Suskind's novel Perfume - The Story Of A Murderer as the year's third best film.
The film did pick up six Lolas from eight nominations - a Silver Lola for Best Film and Golden Lolas for Best Cinematography (Frank Griebe), Best Editing (Alexander Berner), Best Production Design (Uli Hanisch), Best Costume Design (Pierre-Yves Gayraud) and Best Sound Design (Michael Kranz and team).
The $62m (Euros 50m) European co-production was beaten for the main award by the Golden Lola-winning Four Minutes and Marcus H. Rosenmüller's Bavarian comedy Grave Decisions (Wer Früher Stirbt, Ist Länger Tot) which also received a Silver Lola.
Rosenmüller's film continued its winning streak, which began at last July's Munich Film Festival and continued at the Bavarian Film Awards in January, by picking up Golden Lolas for Best Direction, Best Film Score (Gerd Baumann) and Best Screenplay (Christian Lerch, Rosenmüller).
Meanwhile, Detlev Buck's Cornelia Funke adaptation Hände Weg Von Mississippi took home the Golden Lola for Best Children's and Youth Film, while Michael Glawogger's Workingman's Death received the distinction for Best Documentary.
Actor Devid Striesow was recognised for his performance in the Berlinale film The Counterfeiters (Die Fälscher) with the Lola for Best Supporting Actor, and the Academy members voted for shooting star Hannah Herzsprung as Best Supporting Actress for her role in Alain Gsponer's Das Wahre Leben (she had also been nominated for Best Lead Actress for Four Minutes) and veteran Bavarian actor Josef Bierbichler for Best Lead Actor for Hans Steinbichler's Winter Journey (Winterreise).
Veteran actor Armin Mueller-Stahl received a standing ovation from the 2,000-strong audience when he received the Academy's Honorary Award from fellow acting colleague Mario Adorf in recognition of his life's work.
This year marked the third time that the 900-strong membership of the German Film Academy voted for the winners of the German Film Awards with prize money of more than $3.8m (Euros 2.8m) provided by the State Minister for Culture and Media Bernd Neumann