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Magna Announces Two European Transactions

2 February 1998

Magna Announces Two European Transactions

    MARKHAM, Ont., Feb. 2 /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 Roltra Morse S.p.A. (``Roltra Morse'') from
IMO Industries Inc. . The transaction is expected to close at the
end of February 1998.
    Roltra Morse is a leading supplier of automotive latches, window
regulators, cable systems, door modules and gear shift mechanisms to OEM's in
Europe, South America and Turkey, with estimated calendar 1997 sales of
approximately Cdn$150 million. It employs approximately 1050 people in three
wholly owned manufacturing facilities in Italy, one wholly owned facility in
Poland and two jointly controlled facilities in Brazil and Turkey. Its
principal customer is FIAT. Other customers include Saab, Porsche and Rolls
Royce.
    This acquisition enables Magna's Atoma Closure & Electronic Systems Group
to significantly expand its door and body electronic systems capability into
Europe and South America and will strengthen its position as a major full
service systems supplier to the global automotive industry.
    Magna also announced that it has completed the sale of MST Automotive GmbH
Automobil-Sicherheitstechnik (MST) and Temic Bayern-Chemie Airbag GmbH (TBCA)
by selling to TRW Inc. its remaining 20% interest in the two European-based
automotive operations, for a cash payment of approximately Cdn$148 million.
    In fiscal 1997, TRW purchased from Magna an 80% equity interest in MST, a
European supplier of airbag modules, steering wheels, and other related
automotive components, and TBCA, a European supplier of airbag inflators and
propellants and related automotive components.
    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 39,000 employees in 134 manufacturing operations and 27
product development and engineering centres in 11 countries.

SOURCE Magna International Inc.