Magna Acquires U.K. Seating Company

13 May 1997
Magna Acquires U.K. Seating Company

     MARKHAM, Ont., May 12 /CNW-PRN/ - Magna International Inc. (TSE:MG.A,
MG.B; ME:MG.A; NYSE:MGA) announced today that it has entered into an agreement
to acquire 100% of the shares of Tricom Group Holdings Limited for a purchase
price of approximately $72 million, subject to certain specified price
adjustments. The transaction is expected to be completed on or about May 23,
1997.
     Tricom Group Holdings Limited and its subsidiaries (``Tricom'') currently
operate three wholly owned manufacturing facilities in the U.K. which design,
engineer and manufacture complete seats, seat frames and other seating
components for the automotive industry. Tricom is expected to have annualized
sales in calendar 1997 of approximately $140 million. Its principal customers
include Ford, Rover, General Motors and a number of other original equipment
manufacturers in the U.K.
     Magna Vice-Chairman, Bill Fike, said ``the acquisition of Tricom, as well
as the recent North American acquisition of Douglas & Lomason are major steps
in our strategy to become a leading supplier of seating systems to the global
automotive industry''.
     This acquisition enables Magna to significantly expand its seating
capability to Europe and, together with its acquisition last year of the
automotive operations of Marley plc and the recent acquisition of Georg Naher
GmbH, (``GNG''), significantly strengthens Magna's complete interior systems
capability in Europe and further enhances its position as a major full service
supplier to the global automotive industry.
     Magna also announced that it has completed the previously announced
acquisition of 100% of GNG, subject to German anti-trust approval, for
approximately $44 million.
     Magna, one of the most diversified automotive suppliers in the world,
designs, develops and manufactures automotive systems, assemblies and
components primarily for sale to original equipment manufacturers of cars and
light trucks in North America (including Mexico), Europe and China. Magna's
products include exterior decorative systems, interior products including
seating systems, door and other panels, and sound insulation systems, stamped
and welded metal parts and assemblies, sunroofs, electro-mechanical devices
and assemblies, various engine, powertrain and fueling and cooling components,
and a variety of plastic parts, including body panels and fascias.
     Magna has over 34,000 employees in 121 manufacturing operations and 20
product development and engineering centres in 11 countries.

SOURCE  Magna International Inc.