Magna Announces Fourth Quarter and 2010 Results

AURORA, Canada, February 23, 2011 - Magna International Inc. (TSX: MG; NYSE: MGA) today reported
financial results for the fourth quarter and year ended December 31, 2010.

                                  Three Months Ended      Year Ended December
                                     December 31,                 31,
                                   2010         2009       2010         2009

    Sales                       $ 6,598      $ 5,419   $ 24,102     $ 17,367 

    Operating income (loss)       $ 222       $ (125)   $ 1,197       $ (511)

    Net income (loss)             $ 216       $ (139)     $ 973       $ (493)

    Diluted earnings (loss)
    per share                    $ 0.88      $ (0.62)    $ 4.18      $ (2.21)

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

Three Months Ended December 31, 2010

We posted sales of $6.6 billion for the fourth quarter ended
December 31, 2010, an increase of 22% from the fourth quarter of 2009. This
higher sales level was a result of increases in our North American, European
and Rest of World production sales, complete vehicle assembly sales and
tooling, engineering and other sales.

During the fourth quarter of 2010, North American and European
average dollar content per vehicle increased by 17% and 6%, respectively,
each compared to the fourth quarter of 2009. In addition, North American and
European vehicle production both increased 7%, compared to the fourth quarter
of 2009.

Complete vehicle assembly sales increased 19% to $608 million
for the fourth quarter of 2010 compared to $512 million for the fourth
quarter of 2009, while complete vehicle assembly volumes increased 59% to
approximately 25,000 units.

During the fourth quarter of 2010, operating income was $222
million, net income was $216 million and diluted earnings per share were
$0.88, increases of $347 million, $355 million and $1.50, respectively, each
compared to the fourth quarter of 2009.

During the fourth quarter ended December 31, 2010, we
generated cash from operations of $415 million before changes in non-cash
operating assets and liabilities, and generated $499 million from non-cash
operating assets and liabilities. Total investment activities for the fourth
quarter of 2010 were $445 million, including $305 million in fixed asset
additions, $98 million to purchase subsidiaries, and $42 million in
investments and other assets.

Year Ended Decemer 31, 2010

We posted sales of $24.1 billion for the year ended December
31, 2010, an increase of 39% from the year ended December 31, 2009. This
higher sales level was a result of increases in our North American, European
and Rest of World production sales, complete vehicle assembly sales and
tooling, engineering and other sales.

During the year ended December 31, 2010, vehicle production
increased 39% to 12.0 million units in North America and 12% to 13.3 million
units in Europe, each compared to 2009.

Also during 2010, our North American and European average
dollar content per vehicle increased 13% and 8% respectively, each compared
to 2009.

Complete vehicle assembly sales increased 23% to $2.2 billion
for the year ended December 31, 2010 compared to $1.8 billion for the year
ended December 31, 2009, while complete vehicle assembly volumes increased
52% to approximately 86,000 units.

During the year ended December 31, 2010, operating income was
$1.2 billion, net income was $973 million and diluted earnings per share were
$4.18, increases of $1.7 billion, $1.5 billion and $6.39, respectively, each
compared to 2009.

During the year ended December 31, 2010, we generated cash
from operations before changes in non-cash operating assets and liabilities
of $1.7 billion, and generated $177 million from non-cash operating assets
and liabilities. Total investment activities for 2010 were $1.0 billion,
including $784 million in fixed asset additions, $141 million in investments
and other assets and $106 million to purchase subsidiaries.

Don Walker, Magna's Chief Executive Officer commented: "In
2010, Magna benefitted from a strong recovery in vehicle production, both in
our primary markets of North America and Western Europe as well as globally.
We are positioned to capitalize on continued growth in global vehicle
production in 2011 and beyond, as we further expand our manufacturing
footprint in a number of growing regions of the world."

A more detailed discussion of our consolidated financial
results for the fourth quarter and year ended December 31, 2010 is contained
in the Management's Discussion and Analysis of Results of Operations and
Financial Position and the unaudited interim consolidated financial
statements and notes thereto, which are attached to this Press Release.

Increased Quarterly Cash Dividend

Our Board of Directors also declared a quarterly dividend with
respect to our outstanding Common Shares for the quarter ended December 31,
2010. In light of Magna's performance, the Board decided to increase the
dividend by 39% to U.S. $0.25 per share. This dividend is payable on March
23, 2011 to shareholders of record on March 11, 2011.

"Our strong earnings and cash flow generation over the past
year has enabled our Board to increase our dividend for the third time since
we re-established our quarterly dividend last May", stated Vince Galifi,
Magna's Executive Vice President and Chief Financial Officer.

2011 Outlook

For the full year 2011, we expect consolidated total sales to
be between $25.6 billion and $27.1 billion, and expect consolidated
production sales to be between $21.7 billion and $22.7 billion, based on full
year 2011 light vehicle production volumes of approximately 12.9 million
units in North America and approximately 13.3 million units in Western
Europe. We expect full year 2011 production sales to be between $12.7 billion
and $13.2 billion in North America, between $7.8 billion and $8.1 billion in
Europe and between $1.2 billion and $1.4 billion in Rest of World. We expect
full year 2011 complete vehicle assembly sales to be between $2.4 billion and
$2.7 billion. We expect our 2011 effective income tax rate to be
approximately 20%.

In addition, we expect that our full year 2011 spending for
fixed assets will be between $1.0 billion and $1.1 billion. This amount
reflects continuing investment to support new and replacement business in our
traditional markets as well as investment to expand in a number of
high-growth markets. Finally, we expect our full year 2011 consolidated
operating margin percentage, excluding unusual items, to be approximately 5%.

In this 2011 outlook, in addition to 2011 light vehicle
production, we have assumed no material acquisitions or divestitures. In
addition, we have assumed that foreign exchange rates for the most common
currencies in which we conduct business relative to our U.S. dollar reporting
currency will approximate current rates.

About Magna

We are the most diversified global automotive supplier. We
design, develop and manufacture technologically advanced automotive 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; hybrid and
electric vehicles/systems; as well as complete vehicle engineering and
assembly.

We have over 96,000 employees in 256 manufacturing operations
and 82 product development, engineering and sales centres in 26 countries.

We will hold a conference call for interested analysts and
shareholders to discuss our fourth quarter results on Wednesday, February 23,
2011 at 6:00 p.m. EST. The conference call will be chaired by Donald J.
Walker, Chief Executive Officer. The number to use for this call is
1-800-913-1647. The number for overseas callers is 1-212-231-2902. Please
call in at least 10 minutes prior to the call. We will also webcast the
conference call at www.magna.com. The slide presentation accompanying
the conference call will be available on our website Wednesday afternoon
prior to the call.

Forward-Looking Statements

The previous discussion contains statements that constitute
"forward-looking statements" within the meaning of applicable securities
legislation, including, but not limited to, statements relating to: Magna's
expected consolidated sales, based on expected light vehicle production in
North America and Europe; Magna's expected production sales in the North
America, Europe and Rest of World segments; complete vehicle assembly sales;
effective income tax rate; fixed asset expenditures; expansion in high-growth
markets; and consolidated operating margin. The forward-looking information
in this Press Release is presented for the purpose of providing information
about management's current expectations and plans and such information may
not be appropriate for other purposes. 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, and other statements that are not recitations of historical
fact. We use words such as "may", "would", "could", "should", "will",
"likely", "expect", "anticipate", "believe", "intend", "plan", "forecast",
"outlook", "project", "estimate" and similar expressions suggesting future
outcomes or events to identify forward-looking statements. Any such
forward-looking statements are based on information currently available to
us, and 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, many of which are beyond
our control, and the effects of which can be difficult to predict, including,
without limitation: the potential for a slower than anticipated economic
recovery or a deterioration of economic conditions; a significant decline in
production volumes from current levels; the inability of suppliers to timely
accommodate significant, rapid increases in production volumes; our
dependence on outsourcing by our customers; the termination or non renewal by
our customers of any material contracts; our ability to identify and
successfully exploit shifts in technology; restructuring, downsizing and/or
other significant non-recurring costs; impairment charges; our ability to
successfully grow our sales to non-traditional customers; unfavourable
product or customer mix; risks of conducting business in foreign countries,
including China, India, Brazil, Russia and other developing markets; our
ability to quickly shift our manufacturing footprint to take advantage of
lower cost manufacturing opportunities; our ability to secure sufficient
amounts of capital to meet our liquidity requirements on favourable terms;
disruptions in the capital and credit markets; the deteriorating economic
condition of several European governments and the potential adverse effect on
the global economy; fluctuations in relative currency values; exposure to
escalating commodities prices; our ability to successfully identify, complete
and integrate acquisitions; pricing pressures, including our ability to
offset price concessions demanded by our customers; warranty and recall
costs; the financial condition and credit worthiness of some of our OEM
customers, including the potential that such customers may not make, or may
seek to delay or reduce, payments owed to us; the financial condition of some
of our suppliers and the risk of their insolvency, bankruptcy or financial
restructuring; the highly competitive nature of the automotive parts supply
business; 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; risks associated with our pursuit of opportunities in
complementary "non-automotive" businesses; risks associated with our
partnership, Magna E-Car Systems, with the Stronach group to continue to
pursue opportunities in the vehicle electrification business; 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,
including, without limitation, factors set out in our Management Information
Circular/Proxy Statement, dated May 31, 2010 under the heading "Risks
Relating to the Vehicle Electrification Joint Venture" and "Risks to Magna of
the E-Car Business". In evaluating forward-looking statements, we caution
readers not to place undue reliance on any forward-looking statements and
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.

For further information about Magna, please see our website at
www.magna.com. Copies of financial data and other publicly filed
documents are available through the internet on the Canadian Securities
Administrators' System for Electronic Document Analysis and Retrieval (SEDAR)
which can be accessed at www.sedar.com and on the United States
Securities and Exchange Commission's Electronic Data Gathering, Analysis and
Retrieval System (EDGAR) which can be accessed at www.sec.gov

For further information, please contact Louis Tonelli,
Vice-President, Investor Relations at +1-905-726-7035.

For teleconferencing questions, please contact Karin Kaminski
at +1-905-726-7103.

For further information, please contact Louis Tonelli, Vice-President, Investor Relations at +1-905-726-7035. For teleconferencing questions, please contact Karin Kaminski at +1-905-726-7103.