Magna announces redemption of 5% convertible debentures due 2002

    AURORA, ON, Aug. 14 - Magna International Inc.
announced today that it intends to redeem in cash on
September 18, 2001 all of the outstanding 5% Convertible Debentures due 2002
at a redemption price of U.S. $1,021.67 (which includes accrued and unpaid
interest to and including September 17, 2001) per U.S. $1,000 principal amount
of such Debentures. The Debentures are convertible into Class A Subordinate
Voting Shares at a conversion price of U.S. $53.04 and Debentureholders may
continue to convert Debentures until the close of business on September 17,
2001. Any Debentures outstanding on September 18, 2001 will be redeemed for
cash. Approximately U.S. $344.3 million principal amount of Debentures remain
outstanding.
    Magna, one of the most diversified automotive suppliers in the world,
designs, develops and manufactures automotive systems, assemblies, modules and
components, and engineers and assembles complete vehicles, primarily for sale
to original equipment manufacturers of cars and light trucks in North America,
Europe, Mexico, South America and Asia. Magna's products include: interior
products, including complete seats, instrument and door panel systems and
sound insulation, and closure systems through Intier Automotive Inc.; stamped,
hydroformed and welded metal parts and assemblies through Cosma International;
exterior and interior mirror systems through Magna Mirror Systems; a variety
of plastic parts and exterior decorative systems including body panels and
fascias through Decoma International Inc.; various engine, powertrain and
fueling and cooling components through Tesma International Inc.; and a variety
of drivetrain components and complete vehicle engineering and assembly through
Magna Steyr. Magna's non-automotive activities are conducted through Magna
Entertainment Corp.
    Magna has over 64,000 employees in 168 manufacturing operations and 33
product development and engineering centres in 18 countries.