Magna announces continuing involvement in proposed Opel solution

AURORA, ON, June 1 /PRNewswire-FirstCall/ - Magna International Inc. (TSX:
MG.A, NYSE: MGA) announced today that, following extensive negotiations over
the past several days with various stakeholders, including representatives of
German federal and state governments, GM Europe, General Motors Corporation
and the US Treasury, it has reached a conceptual framework that should allow
Opel to avoid a possible insolvency filing and pursue the restructuring
required for its immediate and long-term viability. The framework reflects the
total investment amount and the equity interests previously disclosed on May
22, 2009.
Frank Stronach, Chairman of Magna, stated "While the recent negotiations have
been intense and difficult at times, I believe we have achieved a constructive
solution that represents a "win-win" for all stakeholders and will position
Opel to compete and succeed. We are thankful for the dedication of all
interested parties and look forward to continuing to work with General Motors,
the German governments and other stakeholders to turn our concept into a
reality in the next phase of the process, as the parties work toward
definitive agreements."
There is no assurance that any transaction will result from Magna's current
involvement.
We are the most diversified global automotive supplier. We design, develop and
manufacture technologically advanced systems, assemblies, modules and
components, and engineer and assemble complete vehicles, primarily for sale to
original equipment manufacturers ("OEMs") of cars and light trucks. Our
capabilities include the design, engineering, testing and manufacture of
automotive interior systems; seating systems; closure systems; body and
chassis systems; vision systems; electronic systems; exterior systems;
powertrain systems; roof systems; as well as complete vehicle engineering and
assembly.
We have approximately 74,000 employees in 240 manufacturing operations and 86
product development, engineering and sales centres in 25 countries.

FORWARD-LOOKING STATEMENTS

This press release may contain statements that, to the extent that they are
not recitations of historical fact, constitute "forward-looking statements"
within the meaning of applicable securities legislation. Forward-looking
statements may include financial and other projections, as well as statements
regarding our future plans, objectives or economic performance, or the
assumptions underlying any of the foregoing. We use words such as "may",
"would", "could", "will", "likely", "expect", "anticipate", "believe",
"intend", "plan", "forecast", "project", "estimate" and similar expressions to
identify forward-looking statements. Any such forward-looking statements are
based on assumptions and analyses made by us in light of our experience and
our perception of historical trends, current conditions and expected future
developments, as well as other factors we believe are appropriate in the
circumstances. However, whether actual results and developments will conform
with our expectations and predictions is subject to a number of risks,
assumptions and uncertainties, including, without limitation: the potential
for an extended global recession, including its impact on our liquidity;
declining production volumes and sales levels; the impact of government
financial intervention in the automotive industry; restructuring of the global
automotive industry, including the bankruptcy of Chrysler and the risk of the
bankruptcy of other customers; the financial distress of some of our suppliers
and the risk of their insolvency, bankruptcy or financial restructuring;
restructuring and/or downsizing costs related to the rationalization of some
of our operations; impairment charges; shifts in technology; our ability to
successfully grow our sales to non-traditional customers; a reduction in the
production volumes of certain vehicles, such as certain light trucks; our
dependence on outsourcing by our customers; risks of conducting business in
foreign countries, including Russia, India and China; our ability to quickly
shift our manufacturing footprint to take advantage of lower cost
manufacturing opportunities; the termination or non-renewal by our customers
of any material contracts; disruptions in the capital and credit markets;
fluctuations in relative currency values; our ability to successfully
identify, complete and integrate acquisitions; our ability to offset price
concessions demanded by our customers; the continued exertion of pricing
pressures by our customers; warranty and recall costs; product liability
claims in excess of our insurance coverage; changes in our mix of earnings
between jurisdictions with lower tax rates and those with higher tax rates, as
well as our ability to fully benefit tax losses; other potential tax
exposures; legal claims against us; work stoppages and labour relations
disputes; changes in laws and governmental regulations; costs associated with
compliance with environmental laws and regulations; potential conflicts of
interest involving our indirect controlling shareholder, the Stronach Trust;
and other factors set out in our Annual Information Form filed with securities
commissions in Canada and our annual report on Form 40-F filed with the United
States Securities and Exchange Commission, and subsequent filings. In
evaluating forward-looking statements, readers should specifically consider
the various factors which could cause actual events or results to differ
materially from those indicated by such forward-looking statements. Unless
otherwise required by applicable securities laws, we do not intend, nor do we
undertake any obligation, to update or revise any forward-looking statements
to reflect subsequent information, events, results or circumstances or
otherwise.

SOURCE Magna International Inc.

Vincent J. Galifi, Executive Vice-President and Chief Financial Officer of
Magna at (905) 726-7100