Magna confirms signing agreement with BMW for the production of the BMW X3

AURORA, ON, Oct. 31 - Magna International Inc. confirmed today that, as previously announced by the BMW Group, the Magna Steyr Fahrzeugtechnik ("SFT") unit of its Magna Steyr Group has signed a co-operation agreement covering the development and manufacture of the new BMW X3 Sports Activity Vehicle for the world market, with series production intended to start in 2004.

The detailed vehicle concept was worked out by engineers from the BMW Group. SFT will be building a new assembly building in Graz, Austria and modifying existing painting and assembly facilities in order to provide capacity for over 300 vehicles per day. The Magna Steyr Group's total investment directly related to this project will be approximately US $150 million spread over 2001 to 2004, with annualized revenues under the agreement estimated to be in excess of US $1 billion commencing in 2004. "The BMW order is a further recognition of our overall vehicle competence, which is based - at the Graz site in particular - on 100 years of tradition and experience in automobile technology," explained Siegfried Wolf, President & CEO, of the Magna Steyr Group. 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.