Dr. Demel Of VW Joins Magna International Inc.

AURORA, ON, Aug. 2 - Magna International Inc. in a joint press release with Volkswagen AG and Magna Steyr, announced today that Dr. Herbert Demel will move from the Volkswagen Group to join Magna Steyr, a subsidiary of Magna International, effective October 1st 2002.

Dr. Demel, 48, will be appointed President and Chief Executive Officer at Magna Steyr, and will be responsible for pressing ahead with its continued international expansion. As one of the world's largest automotive engineering suppliers, Magna Steyr specialises in developing and producing complex systems and modules as well as total vehicle assembly for various OEMs.

Belinda Stronach, President and CEO of Magna International, said: "As a team player and strong manager, Dr. Demel brings tremendous industry experience to Magna Steyr."

"Siegfried Wolf will continue to provide guidance to Magna Steyr in his role as Executive Vice-Chairman of Magna International. As a member of the Company's top management team, together with myself and Fred Gingl, Mr. Wolf will be involved in the overall management of Magna International, with a particular emphasis on Magna's operations in Europe. Fred Gingl will continue to focus on Tesma's and Magna's North American operations." Ms. Stronach explains.

Dr. Demel leaves the Volkswagen Group by amicable arrangement. Commenting on the move, Dr. Peter Harz, Member of the Board of Management of Volkswagen AG responsible for Human Resources and the South America/South Africa Region, said: "The Volkswagen Group regrets Dr. Demel's decision and thanks him for many successful years in the service of the company. We wish him good luck for the future."

Since 1997, Dr. Demel has renewed production and product structures at Volkswagen do Brasil under extremely difficult market and economic conditions, establishing market leadership. During his time at Audi from 1990 to 1997, first as Head of Development and then as Chairman of the Board of Management, he was instrumental in bringing about the successful transformation of the Inglostadt automobile manufacturer into a premium brand.

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, transmission, 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 approximately 67,000 employees in 174 manufacturing operations and 43 product development and engineering centres in 19 countries. More information on Magna is available on Magna's website at http://www.magna.com.