Magna Provides Clarification Regarding Potential Battery Investments

By Magna International Inc., PRNE
Tuesday, May 25, 2010

AURORA, Canada, May 26, 2010 - Magna International Inc. (TSX: MG.A, NYSE: MGA) today issued certain
points of clarification in response to recent media reports regarding
Magna's potential future investment in battery plants.

Siegfried Wolf, Magna's Co-Chief Executive Officer stated: "We believe
that the market for hybrid and electric vehicles will continue to grow and
we hope to capitalize on the opportunities that such growth could provide to
capable suppliers. We are reviewing with potential joint venture partners
some of the opportunities available, including opportunities to supply
batteries for hybrid and electric vehicles. At this point, other than our
current contract to supply battery packs to a European OEM, Magna has not
been awarded any such battery business, either directly or through a
potential joint venture partner. Any investment in battery manufacturing
by Magna, or a potential joint venture involving Magna, would first require
a number of conditions to be met, including but not limited to: sufficient
market demand to justify the business case for investment, conclusion of
joint venture terms with technology partners, availability of financing,
commercialization of related technologies, and the settlement of customer
supply terms, including pricing and warranty matters."



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; hybrid and electric
vehicles/systems as well as complete vehicle engineering and assembly.

We have approximately 74,000 employees in 240 manufacturing operations
and 76 product development, engineering and sales centres in 25 countries.



From time to time, we make written or verbal statements that constitute
"forward-looking statements" within the meaning of applicable securities
legislation, including, but not limited to, statements in this document
related to Magna's potential investment in future battery plants and future
growth prospects for the hybrid and electric vehicles market. The
forward-looking information contained in this document and related
discussions 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: Vincent J. Galifi, Executive Vice-President
and Chief Financial Officer at +1(905)726-7100

For further information: Vincent J. Galifi, Executive Vice-President and Chief Financial Officer at +1(905)726-7100

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