Magna Announces Second Quarter and Year to Date Results

Quarterly Dividend Increased to 30 Cents

AURORA, Canada, August 6, 2010 - Magna International Inc. (TSX: MG.A; NYSE: MGA) today reported financial
results for the second quarter and six months ended June 30, 2010.

    -------------------------------------------------------------------------
                                     THREE MONTHS ENDED     SIX MONTHS ENDED
                                           JUNE 30,              JUNE 30,
                                  --------------------- ---------------------
                                       2010       2009       2010       2009
                                     -------    -------    -------    -------
    Sales                         $   6,050  $   3,705  $  11,562  $   7,279

    Operating income (loss)       $     373  $    (237) $     658  $    (467)

    Net income (loss)             $     293  $    (205) $     516  $    (405)

    Diluted earnings (loss) per
     share                        $    2.59  $   (1.83) $    4.56  $   (3.62)

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

THREE MONTHS ENDED JUNE 30, 2010

——————————–

We posted sales of $6.1 billion for the second quarter ended June 30,
2010, an increase of 63% from the second 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 second quarter of 2010, North American and European average
dollar content per vehicle increased by 27% and 8%, respectively, each
compared to the second quarter of 2009. In addition, North American and
European vehicle production increased 75% and 13%, respectively, each
compared to the second quarter of 2009.

Complete vehicle assembly sales increased 39% to $590 million for the
second quarter of 2010 compared to $423 million for the second quarter of
2009, while complete vehicle assembly volumes increased 59% to approximately
22,400 units.

During the second quarter of 2010, operating income was $373 million, net
income was $293 million and diluted earnings per share were $2.59, increases
of $610 million, $498 million and $4.42, respectively, each compared to the
second quarter of 2009.

During the second quarter ended June 30, 2010, we generated cash from
operations of $463 million before changes in non cash operating assets and
liabilities, and generated $74 million in non cash operating assets and
liabilities. Total investment activities for the second quarter of 2010 were
$187 million, including $164 million in fixed asset additions and $23 million
in investments and other assets.

SIX MONTHS ENDED JUNE 30, 2010

——————————

We posted sales of $11.6 billion for the six months ended June 30, 2010,
an increase of 59% from the six months ended June 30, 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 six months ended June 30, 2010, vehicle production increased
71% to 6 million units in North America and 22% to 6.9 million units in
Europe, each compared to the first six months of 2009.

Also during the first six months of 2010, our North American and European
average dollar content per vehicle increased 15% and 11% respectively, each
compared to the first six months of 2009.

Complete vehicle assembly sales increased 26% to $1 billion for the six
months ended June 30, 2010 compared to $824 million for the six months ended
June 30, 2009, while complete vehicle assembly volumes increased 55% to
approximately 40,400.

During the six months ended June 30, 2010, operating income was $658
million, net income was $516 million and diluted earnings per share were
$4.56, increases of $1.1 billion, $921 million and $8.18, respectively, each
compared to the first six months of 2009.

During the six months ended June 30, 2010, we generated cash from
operations before changes in non cash operating assets and liabilities of
$858 million, and invested $265 million in non cash operating assets and
liabilities. Total investment activities for the first six months of 2010
were $353 million, including $297 million in fixed asset additions, a $54
million increase in investments and other assets and $2 million to purchase
subsidiaries.

A more detailed discussion of our consolidated financial results for the
second quarter and six months ended June 30, 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.

DIVIDENDS

———

Our Board of Directors yesterday declared a quarterly dividend with
respect to our outstanding Class A Subordinate Voting Shares and Class B
Shares for the quarter ended June 30, 2010. The dividend of U.S. $0.30 per
share is payable on September 15, 2010 to shareholders of record on August
31, 2010. The dividend increased from U.S. $0.18 per share for the quarter
ended March 31, 2010 given the continued profitability and better
expectations for vehicle production in our key markets.

2010 OUTLOOK

————

For the full year 2010, we expect our consolidated sales to be between
$22 billion and $23 billion, based on full year 2010 light vehicle production
volumes of approximately 11.5 million units in North America and
approximately 12.0 million units in Europe. Full year 2010 average dollar
content per vehicle is expected to be between $955 and $985 in North America
and between $520 and $545 in Europe. We expect our full year 2010 complete
vehicle assembly sales to be between $1.8 billion and $2.1 billion. In
addition, we expect that full year 2010 spending for fixed assets will be in
the range of $750 million to $800 million.

This 2010 outlook assumes no significant 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 approximately 76,000 employees in 242 manufacturing operations
and 76 product development, engineering and sales centres in 25 countries.

    -------------------------------------------------------------------------

    We will hold a conference call for interested analysts and shareholders
    to discuss our second quarter results on Friday, August 6, 2010 at 8:30
    a.m. EDT. The conference call will be chaired by Vincent J. Galifi,
    Executive Vice-President and Chief Financial Officer. The number to use
    for this call is 1-800-771-7943. The number for overseas callers is 1-
    212-231-2912. Please call in 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 Friday
    morning 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; North American and European average dollar content
per vehicle; complete vehicle assembly sales; and fixed asset expenditures.
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; production volumes and sales levels which are below forecast
levels; 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; disruptions in the
capital and credit markets; fluctuations in relative currency values; 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; 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, 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: For further information: 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: For further information: Louis Tonelli, Vice-President, Investor Relations at +1-905-726-7035; For teleconferencing questions, please contact Karin Kaminski at +1-905-726-7103