Magna International Inc. (TSE: MG.A - news, MG.B - news; NYSE: MGA - news) today reported sales, profits and earnings per share for the second quarter ended June 30, 2000.

SIX MONTHS ENDED THREE MONTHS ENDED
June 30,2000
June 30,1999
June 30,2000
June 30,1999
Sales
$5,264
$4,616
$2,562
$2,345
Net Income
$ 316(1)
$ 212(2)
$ 170(1)
$ 108(2)
Excl. Other Income
$ 288
$ 212(2)
$ 142
$ 108(2)
Net Income
$ 316(1)
$ 212(2)
$ 170(1)
$ 108(2)
Excl. Other Income
$ 288
$ 212(2)
$ 142
$ 108(2)

(1) Includes a $28 million gain on the sale of the Company's remaining Class A Subordinate Voting shares of Tesma International Inc. ("Tesma").

(2) Net Income and fully diluted earnings per share have been restated due to an accounting policy change relating to design and engineering and pre-production costs. For more information see note 2 to the Second Quarter Consolidated Financial Statements attached.

All results are reported in millions of U.S. dollars, except per share figures.

Sales for the second quarter and first half of fiscal 2000 were $2.6 billion and $5.3 billion, respectively, an increase of approximately 9% and 14% over the comparable periods ended June 30, 1999. The higher sales level in the second quarter of 2000 reflects a 6% increase in North American content per vehicle, and a 10% increase in European content per vehicle, excluding the 11% reduction related principally to the impact of Euro foreign currency translation, over the comparable quarter, a period in which North American and European vehicle production increased approximately 5% and 2%, respectively. Tooling and other sales increased by 10% to $242 million in the second quarter.

Net income for the second quarter increased 31% to $142 million, excluding the gain of $28 million on the sale of the Company's remaining 4,352,644 Class A Subordinate Voting Shares of Tesma, compared to $108 million in the comparable period in 1999. Magna continues to own a significant equity interest in Tesma through its holdings of all of Tesma's outstanding multiple voting Class B Shares. Including the gain on the sale of Tesma shares, net income in the second quarter and first half of fiscal 2000 increased to $170 million and $316 million respectively.

Fully diluted earnings per share were $1.52 and $3.07 for the second quarter and first half of fiscal 2000, excluding the gain on the sale of Tesma shares, representing an increase of 26% and 29%, respectively, over the comparable periods. Including the gain, fully diluted earnings per share increased to $1.82 and $3.37 respectively.

During the second quarter of 2000, cash generated from operations before changes in working capital was $245 million. Total investment activities during the quarter were $144 million, including $141 million in fixed assets.

The Board of Directors declared a dividend of $0.30 per share with respect to the outstanding Class A Subordinate Voting Shares and Class B Shares for the quarter ended June 30, 2000. The dividend is payable on September 15, 2000 to shareholders of record on August 31, 2000.

Magna also announced that it intends to form a working relationship with Covisint, the global internet based Business to Business Exchange formed by General Motors, Ford, DaimlerChrysler, Renault and Nissan, pending U.S. Government and legal approvals of the new venture.

Don Walker, President and C.E.O. of Magna, stated "The Exchange will allow suppliers and customers to more efficiently transact business and better co-ordinate production planning and releases. Most importantly, the Exchange will ultimately enable customers and suppliers to work together on product development through simultaneous design and real-time engineering changes."

Magna, one of the most diversified automotive suppliers in the world, designs, develops and manufactures automotive systems, assemblies and components, and engineers and assembles complete vehicles, primarily for sale to original equipment manufacturers of cars and light trucks in North America, Europe, Mexico, South America and Asia. Magna's products include: exterior decorative systems; interior products including complete seats, instrument and door panel systems and sound insulation; stamped and welded metal parts and assemblies; electro-mechanical devices and assemblies and navigation systems; a variety of plastic parts, including body panels and fascias through Decoma International Inc.; various engine, powertrain and fueling and cooling components through Tesma International Inc.; a variety of drivetrain components through Steyr Powertrain; and complete vehicle engineering and assembly through SteyrSymatec.

Magna has over 59,000 employees in 166 manufacturing operations and 32 product development and engineering centres in 19 countries.