Magna Announces Second Quarter and Year to Date Results

AURORA, Ontario, August 6 -- Magna International Inc. (TSX: MG.A; NYSE: MGA) today reported financial results for the second quarter and six months ended June 30, 2008.

Magna posted sales of US$13.3 billion for the six months ended June 30, 2008, an increase of 1% over the six months ended June 30, 2007. Increases in our European and Rest of World production sales were partially offset by reductions in North American production sales, complete vehicle assembly sales, and tooling, engineering and other sales.

During the six months ended June 30, 2008, North American and European average dollar content per vehicle increased 4% and 22%, respectively, each over the comparable six-month period in 2007. During the six months ended June 30, 2008, North American and European vehicle production declined 12% and 1%, respectively, each from the comparable six-month period in 2007.

Complete vehicle assembly sales decreased 1% to US$2.140 billion for the six months ended June 30, 2008 compared to US$2.168 billion for the six months ended June 30, 2007, while complete vehicle assembly volumes declined 28% to 83,272 units compared to the first six months of 2007.

During the six months ended June 30, 2008, operating income was US$605 million, net income was US$434 million and diluted earnings per share were US$3.75. Operating income decreased US$77 million, net income decreased US$46 million, and diluted earnings per share decreased US$0.57, each compared to the first six months of 2007.

During the six months ended June 30, 2008, we generated cash from operations before changes in non cash operating assets and liabilities of US$925 million, and invested US$497 million in non cash operating assets and liabilities. Total investment activities for the first six months of 2008 were US$534 million, including US$315 million in fixed asset additions, US$105 million to purchase subsidiaries, and a US$114 million increase in investments and other assets.

During the first six months of 2008, we purchased for cancellation 3.5 million Class A Subordinate Voting Shares for cash consideration of US$247 million, pursuant to the terms of our normal course issuer bid program.

A more detailed discussion of our consolidated financial results for the second quarter and six months ended June 30, 2008 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

Today, our Board of Directors declared a quarterly dividend with respect to our outstanding Class A Subordinate Voting Shares and Class B Shares for the quarter ended June 30, 2008. The dividend of U.S. US$0.36 per share is payable on September 15, 2008 to shareholders of record on August 29, 2008.

2008 OUTLOOK

Magna have significantly reduced our expectations for 2008 light vehicle production volumes in North America. For the full year 2008, we now expect light vehicle production volumes of approximately 13.2 million units in North America and approximately 15.6 million units in Europe. Consequently, we expect consolidated sales to be between US$24.3 billion and US$25.6 billion for full year 2008. Full year 2008 average dollar content per vehicle is expected to be between US$850 and US$880 in North America and between US$485 and US$510 in Europe. Magna expect full year 2008 complete vehicle assembly sales to be between US$3.5 billion and US$3.8 billion.

In addition, we expect that full year 2008 spending for fixed assets will be in the range of US$850 million to US$900 million.

In our 2008 outlook we have assumed no significant acquisitions or divestitures, and no significant labour disruptions in our principal markets. 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.

Magna are the most diversified global automotive supplier. Magna 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; as well as complete vehicle engineering and assembly.

Magna have approximately 82,000 employees in 241 manufacturing operations and 62 product development and engineering centres in 23 countries.

Magna will hold a conference call for interested analysts and shareholders to discuss our second quarter results on Magnadnesday, August 6, 2008 at 5:00 p.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 +1-800-734-8592. The number for overseas callers is +1-212-231-2900. Please call in 10 minutes prior to the call. Magna will also webcast the conference call at www.magna.com. The slide presentation accompanying the conference call will be available on our website Magnadnesday afternoon prior to the call.