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Magna Forms Mexican Joint Venture

20 August 1997

Magna Forms Mexican Joint Venture

     MARKHAM, Ont., Aug. 20 /CNW-PRN/ - Magna International Inc. (TSE:MG.A,
MG.B; ME:MG.A; NYSE:MG.A) announced today that its Decoma Exterior Systems
Group (``Decoma'') has entered into a joint venture which has acquired the
operations and assets of Moldes Para Plastico Ayareb, S.A. de C.V.
(``Ayareb'') in Mexico, subject to certain regulatory approvals. The joint
venture, Decomex Inc., will be owned 70% by Decoma and 30% by Ayareb's former
owner, Mr. Jesus Ayala Gomez. Decoma will exercise operational and management
control of the new business.
     Decoplas S.A. de C.V. (``Decoplas''), the principal operating subsidiary
of Decomex Inc., will operate a 375,000 square foot facility near Mexico City
which will manufacture and finish fascias, grills and other exterior
appearance components for the Mexican automotive industry. Decoplas is
expected to have annualized sales of approximately $80 million in calendar
1997. Its principal customers in Mexico will include Chrysler, Volkswagen,
General Motors, Nissan and Ford Motor Company.
     The formation of this joint venture will significantly expand Magna's
product capability in Mexico and solidifies Decoma's position as one of the
world's leading suppliers of automotive fascias.
     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, Mexico and Europe. 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 35,000 employees in 124 manufacturing operations and 20
product development and engineering centres in 11 countries.

     SOURCE  Magna International Inc.