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Magna Announces Intent

19 October 1998

Magna Announces Intent to Create Largest Minority Independent Supplier Of Seat Frames in North America

    AURORA, Ontario, Oct. 19 -- Magna International Inc.
announced today that it  has signed a letter of intent to sell its
interest in its metal seat frame business to a new minority company to be
formed with the P&C Group of West Bloomfield, Michigan.  The P&C Group is a
minority company that currently supplies the North American Tier-1 seating
market.
    In making the announcement, Richard Banfield, president of MSS said:
"Magna Seating Systems is pleased to be playing a role in establishing not
only a significant new minority company, but what will also be the largest
independent supplier of seating frames to the North American automotive
market.  This transaction with P&C is expected to represent $1 billion of
minority sourcing in North America over the next seven years.  We are truly
pleased to participate in this historic event."
    The P&C Group is currently comprised of two companies, Lorain County
Automotive Systems (LCAS) and Advanced Automotive Systems (AAS).  The new
minority company will consist of the three Magna seat frame plants located in
Carrollton, Ga., Columbus, Neb., and Marianna, Ark.
    The company will be operated by the P&C Group, with Magna in the short
term providing assistance in both management and technology.  The new company
plans to aggressively maintain and pursue business with all of the Tier-1
seating suppliers in North America and has developed significant investment
plans to support this activity.
    Magna International Inc. is one of the most diversified automotive
suppliers in the world.  The company designs, develops and manufactures
automotive systems, assemblies and components for the nearly all light vehicle
manufacturers in North America, Europe, Mexico and South America.  Magna also
engineers and assembles complete vehicles for  automotive companies in the
U.S. and Europe.  Magna has over 49,000 employees in 155 manufacturing
operations and 30 product development and engineering centers in 16 countries.
    The P&C Group is a major supplier of seat components and assemblies to the
automotive industry with two manufacturing facilities located in Ohio and
corporate headquarters located in West Bloomfield, Michigan.