BMW Tells Magna Buh-Bye

AURORA, ON, May 16, 2007 -- Magna International Inc. today reported that BMW AG has informed us of its intention to commence in-house assembly of the next generation BMW X3 in Spartanburg, South Carolina, following end of production of the current generation BMW X3 at our Graz, Austria facility. While end of production for the program is at the discretion of BMW, Magna Steyr currently expects BMW X3 production to end in 2010. We are currently a significant supplier to BMW's Spartanburg facility.

We have been the sole production source of the BMW X3 since we began producing the vehicle in 2003. BMW X3 production represented approximately 45% of total vehicles assembled at Magna Steyr in 2006. We are in discussions with customers about future potential assembly opportunities for our Graz facility.

We are the most diversified automotive supplier in the world. We design, develop and manufacture automotive systems, assemblies, modules and components, and engineer and assemble complete vehicles, primarily for sale to original equipment manufacturers of cars and light trucks in North America, Europe, Asia, South America and Africa. Our capabilities include the design, engineering, testing and manufacture of automotive interior systems; seating systems; closure systems; metal body and structural systems; vision systems; electronic systems; exterior systems; powertrain systems; roof systems; as well as complete vehicle engineering and assembly.

We have approximately 83,000 employees in 235 manufacturing operations and 62 product development and engineering centres in 23 countries.