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<SEC-DOCUMENT>0001047469-06-004229.txt : 20060330
<SEC-HEADER>0001047469-06-004229.hdr.sgml : 20060330
<ACCEPTANCE-DATETIME>20060330070655
ACCESSION NUMBER:		0001047469-06-004229
CONFORMED SUBMISSION TYPE:	40-F
PUBLIC DOCUMENT COUNT:		10
CONFORMED PERIOD OF REPORT:	20051231
FILED AS OF DATE:		20060330
DATE AS OF CHANGE:		20060330

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MAGNA INTERNATIONAL INC
		CENTRAL INDEX KEY:			0000749098
		STANDARD INDUSTRIAL CLASSIFICATION:	MOTOR VEHICLE PARTS & ACCESSORIES [3714]
		IRS NUMBER:				000000000
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		40-F
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-11444
		FILM NUMBER:		06720580

	BUSINESS ADDRESS:	
		STREET 1:		337 MAGNA DRIVE
		STREET 2:		N/A
		CITY:			AURORA, ONTARIO, CAN
		STATE:			A6
		ZIP:			L4G 7K1
		BUSINESS PHONE:		9057262462

	MAIL ADDRESS:	
		STREET 1:		337 MAGNA DRIVE
		STREET 2:		N/A
		CITY:			AURORA, ONTARIO, CAN
		STATE:			A6
		ZIP:			L4G 7K1
</SEC-HEADER>
<DOCUMENT>
<TYPE>40-F
<SEQUENCE>1
<FILENAME>a2168885z40-f.htm
<DESCRIPTION>FORM 40-F STAMPS 001-005
<TEXT>
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<FONT SIZE=3 ><A HREF="#06TOR1342_1">QuickLinks</A></FONT>
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<P><FONT SIZE=2>
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<P ALIGN="CENTER"><FONT SIZE=5><B> SECURITIES AND EXCHANGE COMMISSION<BR>  </B></FONT><FONT SIZE=2><B>Washington,&nbsp;D.C. 20549  </B></FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=5><B>FORM 40-F  </B></FONT></P>

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<TD WIDTH="6%"><BR><FONT SIZE=2> <FONT FACE="WINGDINGS">&#111;</FONT></FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
REGISTRATION STATEMENT PURSUANT TO SECTION&nbsp;12 OF THE SECURITIES EXCHANGE ACT OF 1934</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=2 ALIGN="CENTER"><FONT SIZE=2> OR</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="6%"><BR><FONT SIZE=2> <FONT FACE="WINGDINGS">&#253;</FONT></FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
ANNUAL REPORT PURSUANT TO SECTION&nbsp;13(a) or&nbsp;15(d) of THE SECURITIES EXCHANGE ACT OF 1934</FONT></TD>
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<TD WIDTH="50%" VALIGN="TOP"><BR><FONT SIZE=2> For the fiscal year ended </FONT><FONT SIZE=2><B>December&nbsp;31, 2005</B></FONT></TD>
<TD WIDTH="50%" ALIGN="RIGHT" VALIGN="TOP"><FONT SIZE=2><BR>
Commission File Number </FONT><FONT SIZE=2><B>0-13942</B></FONT></TD>
</TR>
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<P ALIGN="CENTER"><FONT SIZE=5><B> Magna International Inc.<BR>  </B></FONT><FONT SIZE=2>(Exact name of Registrant as specified in its charter) </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=4><B> Not Applicable<BR>  </B></FONT><FONT SIZE=2>(Translation of Registrant's name into English (if applicable)) </FONT></P>

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<TD WIDTH="32%" ALIGN="CENTER"><FONT SIZE=2><B>Province of Ontario, Canada<BR> </B></FONT><FONT SIZE=1>(Province of other jurisdiction<BR>
of incorporation or organization)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TD>
<TD WIDTH="32%" ALIGN="CENTER"><FONT SIZE=2><B>3714<BR> </B></FONT><FONT SIZE=1>(Primary Standard Industrial<BR>
Classification Code number (if applicable))</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TD>
<TD WIDTH="32%" ALIGN="CENTER"><FONT SIZE=2><B>Not Applicable<BR> </B></FONT><FONT SIZE=1>(I.R.S. Employer<BR>
Identification Number (if applicable))</FONT></TD>
</TR>
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<TD WIDTH="100%"><FONT SIZE=2>&nbsp;</FONT></TD>
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<TD WIDTH="49%" ALIGN="CENTER"><FONT SIZE=2><B>337 Magna Drive,<BR>
Aurora, Ontario,<BR>
Canada L4G 7K1<BR>
(905)&nbsp;726-2462<BR> </B></FONT><FONT SIZE=1>(Address and telephone number of Registrant's<BR>
principal executive offices)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TD>
<TD WIDTH="49%" ALIGN="CENTER"><FONT SIZE=2><B>CT Corporation System,<BR>
1633 Broadway,<BR>
New York, New York 10019<BR>
(212) 664-1666<BR> </B></FONT><FONT SIZE=1>(Name, address (including zip code) and telephone number (including area code) of agent for service in the United&nbsp;States)</FONT></TD>
</TR>
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<P><FONT SIZE=2>Securities
registered or to be registered pursuant to Section&nbsp;12(b) of the Act. </FONT></P>

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<TR VALIGN="BOTTOM">
<TH WIDTH="49%" ALIGN="CENTER"><FONT SIZE=1><B>Title of each class </B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="49%" ALIGN="CENTER"><FONT SIZE=1><B>Name of each exchange on which registered </B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%" ALIGN="CENTER"><FONT SIZE=2><B>Class A Subordinate Voting Shares</B></FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%" ALIGN="CENTER"><FONT SIZE=2><B>New York Stock Exchange</B></FONT></TD>
</TR>
</TABLE>
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<P><FONT SIZE=2>Securities
registered or to be registered pursuant to Section&nbsp;12(g) of the Act. </FONT><FONT SIZE=2><B>None</B></FONT></P>

<P><FONT SIZE=2>Securities
for which there is a reporting obligation pursuant to Section&nbsp;15(d) of the Act. </FONT><FONT SIZE=2><B>None</B></FONT></P>

<P><FONT SIZE=2>For
annual reports, indicate by check mark the information filed with this Form: </FONT></P>

<P><FONT SIZE=2><FONT FACE="WINGDINGS">&#253;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;Annual
Information Form&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT FACE="WINGDINGS">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;Audited Annual Financial Statements </FONT></P>


<P><FONT SIZE=2>Indicate the number of outstanding shares of each of the issuer's classes of capital or common stock as of the close of the period covered by the annual report<BR></FONT> <FONT SIZE=2><B>108,184,395</B></FONT><FONT SIZE=2> Class A
Subordinate Voting Shares<BR></FONT> <FONT SIZE=2><B>1,093,983</B></FONT><FONT SIZE=2> Class B Shares </FONT></P>

<P><FONT SIZE=2>Indicate
by check mark whether the Registrant by filing the information contained in this Form is also hereby furnishing the information to the Commission pursuant to Rule&nbsp;12g3-2(b)
under the Securities and Exchange Act of 1934 (the "Exchange Act"). If "Yes" is marked, indicate the filing number assigned to the Registrant in connection with such Rule.
Yes&nbsp;&nbsp;<FONT FACE="WINGDINGS">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;&nbsp;<FONT FACE="WINGDINGS">&#253;</FONT> </FONT></P>


<P><FONT SIZE=2>Indicate by check mark whether the Registrant (1)&nbsp;has filed all reports required to be filed by Section&nbsp;12 or&nbsp;15(d) of the Exchange Act during the
preceding 12&nbsp;months (or for such shorter period that the Registrant was required to file such reports) and (2)&nbsp;has been subject to such filing requirements for the past 90&nbsp;days.
Yes&nbsp;&nbsp;<FONT FACE="WINGDINGS">&#253;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;&nbsp;<FONT FACE="WINGDINGS">&#111;</FONT> </FONT></P>

<P><FONT SIZE=2><hr
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<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>1.</B></FONT></DT><DD><FONT SIZE=2><B>ANNUAL INFORMATION FORM  </B></FONT></DD></DL>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Registrant's Annual Information Form for the year ended December&nbsp;31, 2005 required under applicable law in Canada is attached hereto as
Exhibit&nbsp;1 (the&nbsp;"Annual Information Form"). </FONT></P>

<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>2.</B></FONT></DT><DD><FONT SIZE=2><B>AUDITED ANNUAL FINANCIAL STATEMENTS AND<BR>
MANAGEMENT'S DISCUSSION AND ANALYSIS  </B></FONT></DD></DL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Registrant's Annual Report to Shareholders for the year ended December&nbsp;31, 2005 (the&nbsp;"Annual Shareholders' Report") was previously filed with
the U.S.&nbsp;Securities and Exchange Commission (the&nbsp;"Commission") as Exhibit&nbsp;99 to&nbsp;the Registrant's Report on Form&nbsp;6-K dated March&nbsp;29, 2006. For the
Registrant's consolidated audited annual financial statements, including the report of the independent auditors with respect thereto, see pages&nbsp;39 to&nbsp;76 inclusive and page&nbsp;40,
respectively, of the Annual Shareholders' Report. See note&nbsp;23 commencing on page&nbsp;72 of the Registrant's consolidated audited annual financial statements which contains a reconciliation
between Canadian and United&nbsp;States generally accepted accounting principles. For the Registrant's Management's Discussion and Analysis of Results of Operations and Financial Position, see
pages&nbsp;6 to&nbsp;38 inclusive of the Annual Shareholders' Report. </FONT></P>

<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>3.</B></FONT></DT><DD><FONT SIZE=2><B>WEBSITE INFORMATION  </B></FONT></DD></DL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding any reference to the Registrant's website on the World Wide Web in the Annual Information Form or in the documents attached or incorporated as
exhibits hereto, the information contained in the Registrant's website, or any other site on the World Wide Web referred to in the Registrant's website, is not a part of this annual report on
Form&nbsp;40-F and, therefore, is not filed with the Commission. </FONT></P>

<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>4.</B></FONT></DT><DD><FONT SIZE=2><B>FORWARD-LOOKING STATEMENTS  </B></FONT></DD></DL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Registrant has made in the documents filed as part of this annual report on Form&nbsp;40-F, and from time to time may otherwise make
"forward-looking statements", within the meaning of Section&nbsp;21E of the U.S.&nbsp;Securities Exchange Act of 1934 (the&nbsp;"Exchange Act"), and related assumptions concerning its
operations, economic performance and financial matters. Actual results or events could differ materially from those set forth in, or implied by, the forward-looking statements and the related
assumptions due to a variety of factors. Reference is made to the section entitled "Forward-Looking Statements" on page&nbsp;3 of the Annual Information Form for a discussion of such factors. </FONT></P>

<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>5.</B></FONT></DT><DD><FONT SIZE=2><B>DISCLOSURE CONTROLS AND PROCEDURES  </B></FONT></DD></DL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Registrant's Chief Executive Officers and its Chief Financial Officer are responsible for establishing and maintaining the Registrant's disclosure controls
and procedures as such term is defined under Rules&nbsp;13a-15(e) and&nbsp;15d-15(e) of the Exchange Act. Disclosure controls and procedures are designed to provide
reasonable, but not absolute, assurance that material information required to be publicly disclosed by a public company is communicated in a timely manner to senior management of the Registrant to
enable them to make timely decisions regarding public disclosure of such information. The Registrant has conducted an evaluation of its disclosure controls and procedures as of December&nbsp;31,
2005 under the supervision and with the participation of the Registrant's Chief Executive Officers and its Chief Financial Officer. Based on this evaluation, the Registrant's Chief Executive Officers
and its Chief Financial Officer have concluded that the Registrant's disclosure controls and procedures (as&nbsp;this term is defined in the rules adopted by Canadian securities regulatory
authorities and the U.S.&nbsp;Securities and Exchange Commission) are effective in providing reasonable assurance that material information relating to the Registrant (including all consolidated
subsidiaries) is communicated to its senior management, including the Registrant's Chief Executive Officers and its Chief Financial Officer, in a timely manner to enable them to make decisions
regarding the public disclosure of such information. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
have been no changes to the Registrant's internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is
reasonably likely to materially affect, the Registrant's internal control over financial reporting. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

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<A NAME="page_da1342_1_3"> </A>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>6.</B></FONT></DT><DD><FONT SIZE=2><B>AUDIT COMMITTEE MEMBERS AND<BR>
AUDIT COMMITTEE FINANCIAL EXPERT  </B></FONT></DD></DL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Registrant has a separately designated standing audit committee of its Board of Directors (the&nbsp;"Audit Committee"), which is comprised of the following
members of the Registrant's Board of Directors: Donald Resnick (Chairman), William H. Fike, Royden R. Richardson and Lawrence D. Worrall. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Registrant's Board of Directors has determined that each of Mr.&nbsp;Resnick, the Chairman of the Audit Committee, and Mr.&nbsp;Worrall, are "financial experts" and that each
member of the Audit Committee, including Mr.&nbsp;Resnick and Mr.&nbsp;Worrall, is "independent" and "financially literate", as such terms are defined in the listing standards of the
New&nbsp;York Stock Exchange and Exchange Act Rule&nbsp;10A-3. </FONT></P>

<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>7.</B></FONT></DT><DD><FONT SIZE=2><B>CODE OF ETHICS  </B></FONT></DD></DL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Registrant has adopted a code of ethics that applies to all of its employees, including its Chief Executive Officers, its Chief Financial Officer, its
Controller and other persons performing similar functions. The text of such code of ethics is contained in the Registrant's Code of Conduct and Ethics, which is posted on the Registrant's website at
<U>www.magna.com</U>. </FONT></P>

<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>8.</B></FONT></DT><DD><FONT SIZE=2><B>PRINCIPAL ACCOUNTANT FEES AND SERVICES  </B></FONT></DD></DL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The aggregate fees billed for each of the last two fiscal years for professional services rendered by Ernst&nbsp;&amp; Young&nbsp;LLP, the Registrant's principal
accountant (the&nbsp;"Auditor"), are as follows: </FONT></P>

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<DIV ALIGN="CENTER"><TABLE WIDTH="70%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="72%" ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Fiscal 2004</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Fiscal 2005</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="72%"><FONT SIZE=2>Audit Fees</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>6,061,500</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>6,187,900</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="72%"><FONT SIZE=2>Audit-Related Fees</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>467,500</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>197,400</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="72%"><FONT SIZE=2>Tax Fees</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>1,758,000</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>1,693,200</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="72%"><FONT SIZE=2>All Other Fees</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>nil</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="10%" ALIGN="RIGHT"><FONT SIZE=2>nil</FONT></TD>
</TR>
</TABLE></DIV>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
services comprising the Audit Fees category for these two fiscal years were performed by the Auditor to comply with generally accepted auditing standards ("GAAS"). In some cases,
fees in this category may include an appropriate allocation of fees for tax services or accounting consultations, to the extent such services were necessary to comply with GAAS. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
services comprising the Audit-Related Fees category for these two fiscal years consisted of fees paid in respect of assurance and related services (e.g.&nbsp;due diligence),
including such things as employee benefit plan audits, due diligence relating to mergers and acquisitions, accounting consultations and audits in connection with acquisitions, internal control
reviews, attest services that are not required by statute or regulation and consultation concerning financial accounting and reporting standards. The most significant audit-related services actually
provided by the Auditor in respect of fiscal 2005 and fiscal 2004 related to benefit plan audits. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
services comprising the Tax Fees category for these two fiscal years consisted of fees paid in respect of services performed by the Auditor's tax professionals, except those services
required in order to comply with GAAS which are included in the Audit Fees category. Tax services include tax compliance, tax planning and tax advice. The tax services actually provided by the Auditor
in fiscal 2005 and fiscal 2004 consisted of Canadian, U.S., European and Mexican tax compliance, advisory and research services. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
services comprising the All Other Fees category captures fees in respect of all services not falling under any of the previous categories. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Audit Committee has a process for pre-approving all services provided by, and related fees to be paid to, the Auditor. This process includes reviewing, on a quarterly
basis, the details and associated costs of the services expected to be provided. Audit Committee approval is required for any services that have not been previously approved by the Audit Committee.
The Audit Committee considers whether such services are consistent with the Commission's rules on auditor independence. The Audit Committee also considers whether the Auditor is best positioned to
provide the most effective and efficient service, for reasons such as its familiarity with the Registrant's business, people, culture, accounting systems, risk profile, and whether the services
enhance the Registrant's ability to manage or control risks and improve audit quality. The Audit Committee has delegated authority to its Chairman to pre-approve permitted
non-audit services that have not previously been approved, provided that such approval is in writing and signed by the Chairman. The Chairman will report to the Audit Committee on all such
pre-approvals granted under such authority at the next regularly scheduled Audit Committee meeting. None of the services provided by the Auditor in 2005 were treated as exempt from
pre-approval pursuant to the de minimis provision of paragraph&nbsp;(c)(7)(i)(C) of Rule&nbsp;2-01 of Regulation&nbsp;S-X. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>

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<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>9.</B></FONT></DT><DD><FONT SIZE=2><B>OFF-BALANCE SHEET ARRANGEMENTS AND<BR>
TABULAR DISCLOSURE OF CONTRACTUAL OBLIGATIONS  </B></FONT></DD></DL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For disclosure of the Registrant's off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on the
Registrant's financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors, see
pages&nbsp;27 and&nbsp;28 of the Annual Shareholders' Report, under the section entitled "Contractual Obligations and Off-Balance Sheet Financing". </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
the tabular disclosure regarding the Registrant's known contractual obligations, with amounts aggregated by the type of contractual obligation, see pages&nbsp;27 and&nbsp;28 of
the Annual Shareholders' Report, under the section entitled "Contractual Obligations and Off-Balance Sheet Financing". </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="da1342_undertaking_and_consent_to_service_of_process"> </A>
<A NAME="toc_da1342_1"> </A>
<BR></FONT><FONT SIZE=2><B>UNDERTAKING AND CONSENT TO SERVICE OF PROCESS    <BR>    </B></FONT></P>

<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>A.</B></FONT></DT><DD><FONT SIZE=2><B>Undertaking  </B></FONT></DD></DL>
<BR>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Registrant undertakes to make available, in person or by telephone, representatives to respond to inquiries made by the Commission staff, and to furnish promptly,
when requested to do so by the Commission staff, information relating to: the securities registered pursuant to Form&nbsp;40-F; the securities in relation to which the obligation to file
an annual report on Form&nbsp;40-F arises; or transactions in said securities. </FONT></P>

<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2><B>B.</B></FONT></DT><DD><FONT SIZE=2><B>Consent to Service of Process  </B></FONT></DD></DL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A Form&nbsp;F-X signed by the Registrant and its agent for service of process was previously filed with the Commission. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="da1342_signatures"> </A>
<A NAME="toc_da1342_2"> </A>
<BR></FONT><FONT SIZE=2><B>SIGNATURES    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Exchange Act, the Registrant certifies that it meets all of the requirements for filing on Form&nbsp;40-F
and&nbsp;has duly caused this annual report to be signed on its behalf by the undersigned, thereunto duly authorized. </FONT></P>

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<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="25%"><FONT SIZE=2>Registrant:</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="47%"><FONT SIZE=2><B>MAGNA INTERNATIONAL INC.</B></FONT></TD>
</TR>
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<TD WIDTH="24%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="25%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
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<TD WIDTH="24%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="25%"><FONT SIZE=2>By (Signature and Title):</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="47%"><FONT SIZE=2>/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>J. BRIAN COLBURN</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> J. Brian Colburn<BR>
Executive Vice-President, Special Projects and Secretary</FONT></TD>
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<P><FONT SIZE=2>Date:
March&nbsp;29, 2006 </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>4</FONT></P>

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<A NAME="toc_dc1342_1"> </A>
<BR></FONT><FONT SIZE=2><B>EXHIBIT INDEX    <BR>    </B></FONT></P>

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<TD WIDTH="10%"><BR><FONT SIZE=2> Exhibit&nbsp;1</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2><BR>
Annual Information Form of the Registrant dated March&nbsp;29, 2006.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="10%"><BR><FONT SIZE=2> Exhibit&nbsp;2</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2><BR>
Registrant's Annual Report to Shareholders for the Year Ended December&nbsp;31, 2005, which contains the Registrant's audited financial statements as at and for the three-year period ended December&nbsp;31, 2005 and Management's Discussion and
Analysis of Results of Operations and Financial Position (incorporated by reference to Exhibit&nbsp;99 to&nbsp;Registrant's Report on Form&nbsp;6-K dated March&nbsp;29, 2006).</FONT></TD>
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<TD WIDTH="10%"><BR><FONT SIZE=2> Exhibit&nbsp;3</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2><BR>
Consent of Ernst&nbsp;&amp; Young&nbsp;LLP.</FONT></TD>
</TR>
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<TD WIDTH="10%"><BR><FONT SIZE=2> Exhibit&nbsp;99.1</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2><BR>
Certificate of Principal Executive Officer Pursuant to Exchange Act Rules&nbsp;13a-14(a) and&nbsp;15d-14(a), as Adopted Pursuant to Section&nbsp;302 of the Sarbanes-Oxley Act of 2002. (D.&nbsp;Walker)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="10%"><BR><FONT SIZE=2> Exhibit&nbsp;99.2</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2><BR>
Certificate of Principal Executive Officer Pursuant to Exchange Act Rules&nbsp;13a-14(a) and&nbsp;15d-14(a), as Adopted Pursuant to Section&nbsp;302 of the Sarbanes-Oxley Act of 2002. (S.&nbsp;Wolf)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="10%"><BR><FONT SIZE=2> Exhibit&nbsp;99.3</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2><BR>
Certificate of Principal Financial Officer Pursuant to Exchange Act Rules&nbsp;13a-14(a) and&nbsp;15d-14(a), as Adopted Pursuant to Section&nbsp;302 of the Sarbanes-Oxley Act of 2002. (V.&nbsp;Galifi)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="10%"><BR><FONT SIZE=2> Exhibit&nbsp;99.4</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2><BR>
Certificate of Principal Executive Officer Pursuant to 18&nbsp;U.S.C. Section&nbsp;1350, as Adopted pursuant to Section&nbsp;906 of the Sarbanes-Oxley Act of 2002. (D.&nbsp;Walker)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="10%"><BR><FONT SIZE=2> Exhibit&nbsp;99.5</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2><BR>
Certificate of Principal Executive Officer Pursuant to 18&nbsp;U.S.C. Section&nbsp;1350, as Adopted pursuant to Section&nbsp;906 of the Sarbanes-Oxley Act of 2002. (S.&nbsp;Wolf)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="10%"><BR><FONT SIZE=2> Exhibit&nbsp;99.6</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="87%"><FONT SIZE=2><BR>
Certificate of Principal Financial Officer Pursuant to 18&nbsp;U.S.C. Section&nbsp;1350, as Adopted pursuant to Section&nbsp;906 of the Sarbanes-Oxley Act of 2002. (V.&nbsp;Galifi)</FONT></TD>
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<P ALIGN="CENTER"><FONT SIZE=2>5</FONT></P>

<HR NOSHADE>
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<BR>
<P><br><A NAME="06TOR1342_1">QuickLinks</A><br></P><!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_da1342_1">UNDERTAKING AND CONSENT TO SERVICE OF PROCESS</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_da1342_2">SIGNATURES</A></FONT><BR>
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<FONT SIZE=2><A HREF="#toc_dc1342_1">EXHIBIT INDEX</A></FONT><BR>
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<DOCUMENT>
<TYPE>EX-1
<SEQUENCE>2
<FILENAME>a2168885zex-1.htm
<DESCRIPTION>EXHIBIT 1 - 06TOR1343 ENTIRE JOB
<TEXT>
<HTML>
<HEAD>
</HEAD>
<BODY BGCOLOR="#FFFFFF" LINK=BLUE  VLINK=PURPLE>
<BR>
<FONT SIZE=3 ><A HREF="#06TOR1342_2">QuickLinks</A></FONT>
<font size=3> -- Click here to rapidly navigate through this document</font>
<P ALIGN="RIGHT"><FONT SIZE=2><B>Exhibit 1  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT SIZE=2><B>
<IMG SRC="g760100.jpg" ALT="LOGO" WIDTH="216" HEIGHT="48">
  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=4><B>Magna International Inc.  </B></FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2><B>Annual Information Form  </B></FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2><B>March&nbsp;29, 2006  </B></FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="page_bg1343_1_2"> </A> </FONT> <FONT SIZE=2><B>MAGNA INTERNATIONAL INC.  </B></FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2><B>ANNUAL INFORMATION FORM  </B></FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2><B>TABLE OF CONTENTS  </B></FONT></P>

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<TR VALIGN="BOTTOM">
<TH WIDTH="10%" ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TH>
<TH WIDTH="81%" ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="4%" ALIGN="CENTER"><FONT SIZE=1><B>Page</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=3><FONT SIZE=2> FORWARD-LOOKING STATEMENTS</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>3</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%"><FONT SIZE=2> ITEM 1.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2>CORPORATE STRUCTURE</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>4</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%"><FONT SIZE=2> ITEM 2.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2>GENERAL DEVELOPMENT OF THE BUSINESS</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>4</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;OVERVIEW</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>4</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;RECENT TRENDS IN THE AUTOMOTIVE INDUSTRY</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>7</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;OUR BUSINESS STRATEGY</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>10</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;OPERATING STRUCTURE AND PRINCIPLES</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>12</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;RECENT DEVELOPMENTS IN OUR BUSINESS</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>13</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;SPIN-OFF OF MI DEVELOPMENTS&nbsp;INC. AND MAGNA ENTERTAINMENT CORP.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>15</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%"><FONT SIZE=2> ITEM 3.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2>DESCRIPTION OF THE BUSINESS</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>16</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;PRODUCT CAPABILITIES</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>17</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;RESEARCH AND DEVELOPMENT</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>24</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;MANUFACTURING AND ENGINEERING</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>25</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;HUMAN RESOURCES</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>25</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;COMPETITION</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>28</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;SALES AND MARKETING</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>28</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;ENVIRONMENTAL MATTERS</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>29</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;INTELLECTUAL PROPERTY</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>30</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;RISK FACTORS</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>30</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%"><FONT SIZE=2> ITEM 4.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2>DIVIDENDS</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>37</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%"><FONT SIZE=2> ITEM 5.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2>MANAGEMENT'S DISCUSSION AND ANALYSIS</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>38</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%"><FONT SIZE=2> ITEM 6.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2>DESCRIPTION OF CAPITAL STRUCTURE</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>38</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%"><FONT SIZE=2> ITEM 7.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2>MARKET FOR SECURITIES</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>40</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%"><FONT SIZE=2> ITEM 8.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2>DIRECTORS AND OFFICERS</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>42</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%"><FONT SIZE=2> ITEM 9.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2>CORPORATE CONSTITUTION</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>46</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%"><FONT SIZE=2> ITEM 10.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2>LEGAL PROCEEDINGS</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>49</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%"><FONT SIZE=2> ITEM 11.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2>INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>51</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%"><FONT SIZE=2> ITEM 12.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2>TRANSFER AGENT AND REGISTRAR</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>51</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="10%"><FONT SIZE=2> ITEM 13.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2>AUDIT COMMITTEE</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>51</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="10%"><FONT SIZE=2> ITEM 14.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="81%"><FONT SIZE=2>ADDITIONAL INFORMATION</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>51</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=3><FONT SIZE=2> SCHEDULE A&nbsp;&#151;&nbsp;PRINCIPAL SUBSIDIARIES</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>A-1</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD COLSPAN=3><FONT SIZE=2> SCHEDULE B&nbsp;&#151;&nbsp;AUDIT COMMITTEE CHARTER</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>B-1</FONT></TD>
</TR>
</TABLE>
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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
this Annual Information Form, when we use the terms "we", "us", "our", "Company" and "Magna", we are referring to Magna International&nbsp;Inc. and its subsidiaries and jointly
controlled entities, unless the context otherwise requires. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
this Annual Information Form, a reference to "calendar year" is a reference to the financial year from January&nbsp;1 to December&nbsp;31 of the year stated and a reference to
"fiscal year" is a reference to the financial year from August&nbsp;1 to July&nbsp;31 of the year stated. All references to "$" or "dollars" are references to U.S.&nbsp;dollars, unless otherwise
specified. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2><A
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<A NAME="toc_bi1343_1"> </A>
<BR></FONT><FONT SIZE=2><B>FORWARD-LOOKING STATEMENTS    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Annual Information Form contains statements that, to the extent they are not recitations of historical fact, constitute "forward-looking statements" within
the meaning of applicable securities legislation. 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. We use words such as "may", "would", "could", "will", "likely", "expect", "anticipate", "believe", "intend", "plan", "forecast",
"project", "estimate" and similar expressions to identify forward-looking statements. Any such forward-looking statements 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 to our expectations and predictions is subject to a number of risks, assumptions and uncertainties. These risks, assumptions and uncertainties include, but are not
limited to: </FONT></P>

<UL>

<P><FONT SIZE=2>&#149;
declining production volumes and changes in consumer demand for vehicles;<BR>
&#149; the inability of our customers to meet their financial obligations to us;<BR>
&#149; a reduction in the production volumes of certain vehicles;<BR>
&#149; our ability to compete with suppliers with operations in low cost countries;<BR>
&#149; our inability to offset increases in the cost of commodities, such as steel and resins;<BR>
&#149; the financial distress of some of our suppliers and customers;<BR>
&#149; our inability to offset price concessions demanded by our customers;<BR>
&#149; our inability to fully recover pre-production expenses;<BR>
&#149; warranty and recall costs;<BR>
&#149; the termination by our customers of any material contracts;<BR>
&#149; product liability claims in excess of our insurance coverage;<BR>
&#149; expenses related to the restructuring and rationalization of some of our operations;<BR>
&#149; impairment charges;<BR>
&#149; legal claims against us;<BR>
&#149; risks of conducting business in foreign countries;<BR>
&#149; unionization activities at our facilities;<BR>
&#149; work stoppages and labour relations disputes;<BR>
&#149; changes in laws and governmental regulations;<BR>
&#149; costs associated with compliance with environmental laws and regulations;<BR>
&#149; potential conflicts of interest involving our controlling shareholder, the Stronach Trust; and<BR>
&#149; the expiration of the Forbearance Agreement on May&nbsp;31, 2006. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
evaluating any forward-looking statements in this Annual Information Form, you should specifically consider the various factors, including those contained under the section titled
"ITEM 3. DESCRIPTION OF THE BUSINESS&nbsp;&#151;&nbsp;RISK FACTORS" below, which could cause actual events or results to differ materially from those indicated by our
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 contained
in this Annual Information Form to reflect subsequent information, events or circumstances or otherwise. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>

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<P><FONT SIZE=2><B>ITEM 1.&nbsp;&nbsp;&nbsp;&nbsp;CORPORATE STRUCTURE  </B></FONT></P>


<P><FONT SIZE=2><B>Issuer  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We were incorporated under the laws of the Province of Ontario, Canada on November&nbsp;16, 1961. Our charter documents currently consist of articles of
arrangement dated March&nbsp;6, 2005, which were issued pursuant to the </FONT><FONT SIZE=2><I>Business Corporations Act</I></FONT><FONT SIZE=2> (Ontario). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
registered and head office is at 337&nbsp;Magna Drive, Aurora, Ontario, Canada L4G&nbsp;7K1. </FONT></P>

<P><FONT SIZE=2><B>Subsidiaries  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A list of our principal subsidiaries and their respective jurisdictions of incorporation as of December&nbsp;31, 2005 is set out on Schedule&nbsp;A. Our legal
structure (including that of our subsidiaries) is not necessarily indicative of our operational structure. </FONT></P>

<P><FONT SIZE=2><B>ITEM 2.&nbsp;&nbsp;&nbsp;&nbsp;GENERAL DEVELOPMENT OF THE BUSINESS  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="bi1343_overview"> </A>
<A NAME="toc_bi1343_2"> </A>
<BR></FONT><FONT SIZE=2><B>OVERVIEW    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are the most diversified automotive supplier in the world. We design, develop and manufacture automotive systems, assemblies, modules and components, and
engineer and assemble complete vehicles primarily for sale to original equipment manufacturers of cars and light trucks in North America, Europe, Asia and South America. As at December&nbsp;31,
2005, we employed over 82,000&nbsp;people in 224&nbsp;manufacturing facilities and 60&nbsp;product development and engineering facilities, in 22&nbsp;countries. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
capabilities include the design, engineering, testing and manufacture of: </FONT></P>

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<TD WIDTH="49%"><FONT SIZE=2>&#149; interior systems;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2>&#149; electronic systems;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2>&#149; seating systems;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2>&#149; plastic body, lighting and exterior trim systems;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2>&#149; closure systems;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2>&#149; powertrain and drivetrain systems; and</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2>&#149; metal body and chassis systems;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2>&#149; roof systems.</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2>&#149; mirror systems;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
</TABLE>
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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additionally,
we have complete vehicle engineering, testing and assembly capabilities. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior
to April&nbsp;2005, we operated through seven automotive systems groups, three of which&nbsp;&#151;&nbsp;Decoma International&nbsp;Inc. ("Decoma"),
Intier Automotive&nbsp;Inc. ("Intier") and Tesma International&nbsp;Inc. ("Tesma")&nbsp;&#151;&nbsp;were publicly traded companies in which we had a controlling interest
through voting securities. During the first quarter of 2005, we completed the acquisition of all the outstanding shares of each of Decoma and Tesma that we did not already own and early in
April&nbsp;2005, we completed the acquisition of the outstanding shares of Intier that we did not already own. Shortly after privatizing Decoma, Intier and Tesma, we began to reorganize and segment
our operations on a geographic basis among North America, Europe and Rest of World (primarily Asia and South America). Please see "OPERATING STRUCTURE AND PRINCIPLES" below for additional information. </FONT></P>

<P><FONT SIZE=2><B>Reporting Segments  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We operate internationally through divisions, which function as autonomous business units operating within pre-determined guidelines. Our divisions
have been aligned on a geographic basis in order to meet the needs of our customers and respond to regional economic and industry factors. Accordingly, we operate in three separate geographic
reporting segments&nbsp;&#151;&nbsp;North America, Europe and Rest of World. We also maintain corporate and other operations, which constitutes a separate reportable segment,
that consists of operations that support or are ancillary to our automotive operations. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>4</FONT></P>

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<P><FONT SIZE=2><B>Geographic Markets and Customers  </B></FONT></P>


<P><FONT SIZE=2><B><I>North America  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our primary customers in North America include General Motors, DaimlerChrysler (including Mercedes), Ford (including Mazda), Honda, Renault-Nissan, Toyota, BMW,
Volkswagen and Mitsubishi. Our North American consolidated production sales accounted for approximately 50% and 47% of our consolidated sales for each of 2005 and 2004, respectively. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Some
of our key North American programs on the basis of 2005 production sales include: </FONT></P>

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<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="94%" ALIGN="CENTER"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2>GMT800&nbsp;series of vehicles, for which we supply hydroformed frame assemblies, transfer cases, fascias, running boards, various exterior ornamentation, certain latches and various interior, engine and powertrain
components;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
Dodge Caravan, Grand Caravan and Chrysler Town&nbsp;&amp; Country, for which we supply complete seating systems and mechanisms, including stow-to-floor seats for the second and third row seats, power take-off modules, various powertrain components,
various exterior ornamentation, load floor assembly, latches, power liftgates, power sliding doors, as well as interior and exterior mirrors;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
General Motor's Chevrolet Cobalt and Pontiac Pursuit, for which we supply stampings and welded assemblies, bumper beams, front and rear suspension assemblies, body side mouldings, front and rear fascias, complete seats, hood latches, window
regulators, interior mirrors, window encapsulation and fluid system and accessory drive components;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
Ford F-150, for which we supply running boards, latches, inside door handles, seat tracks, various stampings and welded assemblies, interior and exterior mirrors and various powertrain components;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
Chrysler 300 and 300C, Dodge Magnum and Charger, for which we supply body side panels, rear floor stampings and subframes, front end modules, rear fascias, outer belts, trim components, decklid and hood latches, accessory drive components, interior
mirrors, transfer cases and front axles; and</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
Chevrolet Equinox, for which we supply complete seating systems, latching systems, overhead systems, instrument panels, consoles, interior mirrors, as well as various exterior components and stampings.</FONT></TD>
</TR>
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<P><FONT SIZE=2><B><I>Europe  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our primary customers in Europe include BMW (including MINI and Rolls Royce), DaimlerChrysler (including Mercedes, Chrysler and smart), Volkswagen (including
Audi, Skoda, SEAT and Bentley), General Motors (including Saab, Opel, Vauxhall and Suzuki), Ford (including Volvo, Jaguar, Land Rover and Aston Martin), Renault-Nissan, Fiat, Porsche,
Toyota, PSA Peugeot Citro&euml;n and Honda. Our European consolidated production and vehicle assembly sales accounted for approximately 40% and 45% of our consolidated sales for 2005 and
2004, respectively. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Some
of our key European programs on the basis of 2005 production and vehicle assembly sales include: </FONT></P>

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<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="94%" ALIGN="CENTER"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2>BMW X3, for which we perform complete vehicle assembly and supply various stampings, interior and pillar trim, sun visors, interior mirrors as well as actuators, all-wheel drive transfer case, engine dress and fuel
caps;</FONT></TD>
</TR>
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<P ALIGN="CENTER"><FONT SIZE=2>5</FONT></P>

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<TH WIDTH="94%" ALIGN="CENTER"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2>MINI Cooper, for which we supply complete cockpit modules, front and rear fascias, door and side panels, hard trim, interior mirrors and fuel caps;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
Mercedes A-Class, for which we supply door panels, floor space, sun visors, interior and exterior mirrors, front end modules, stampings and various exterior ornamentation;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
Mercedes C-Class, for which we supply various stampings, all-wheel drive systems, front and rear fascias, load space/floor space, interior and exterior mirrors and mass balancing system;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
Mercedes E-Class, for which we perform complete vehicle assembly (4MATIC) and&nbsp;supply all-wheel drive systems, floor space, sun visors, interior and exterior mirrors, steel gas tank and fuel filler system;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
VW Golf, for which we supply instrument panels, pillar trim and headliners, latches, actuators, various stampings, front end modules, sun visors, interior and exterior mirrors, as well as power take-off units;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
BMW 3-series, for which we supply various stampings, body mouldings, door panels, interior pillar covers, loadspace trim, interior and exterior mirrors, all-wheel drive systems and fuel caps; and</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
Nissan Micra, for which we supply the instrument panels and interior mirrors.</FONT></TD>
</TR>
</TABLE>
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<P><FONT SIZE=2><B><I>Rest of World  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our customers in Rest of World include General Motors (including GMDAT, Holden, Isuzu and Suzuki), Volkswagen, Ford (including Mazda), Hyundai (including Kia),
Fiat, Honda, DaimlerChrysler (including Mercedes and Chrysler), PSA Peugeot Citro&euml;n, Renault-Nissan, BMW and Toyota. Our consolidated Rest of World production sales accounted for
approximately 1% of our consolidated sales for each of 2005 and 2004. </FONT></P>

<P><FONT SIZE=2><B><I>Customer Concentration  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Worldwide sales to our four largest customers&nbsp;&#151;&nbsp;DaimlerChrysler, General Motors, BMW and
Ford&nbsp;&#151;&nbsp;represented approximately 25%, 24%, 18% and 15%, respectively, of our consolidated sales in 2005. See "ITEM 3. DESCRIPTION OF THE BUSINESS" below. </FONT></P>

<P><FONT SIZE=2><B>Non-Automotive Operations  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Until August&nbsp;29, 2003, we had non-automotive operations, which were conducted through Magna Entertainment Corp. Magna Entertainment is North
America's largest owner and operator of horse racetracks, based on revenue. We transferred our controlling equity interest in Magna Entertainment to MI Developments&nbsp;Inc. in connection with the
reorganization and subsequent spin-off of MI Developments. Since the completion of the spin-off transaction, we no longer have any significant non-automotive
operations. See "OPERATING STRUCTURE AND PRINCIPLES&nbsp;&#151;&nbsp;Reorganizations" and "SPIN-OFF OF MI DEVELOPMENTS&nbsp;INC. AND MAGNA ENTERTAINMENT CORP."
below. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>6</FONT></P>

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<BR></FONT><FONT SIZE=2><B>RECENT TRENDS IN THE AUTOMOTIVE INDUSTRY    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A number of trends have had a significant impact on the global automotive industry in recent years, including: </FONT></P>

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<TH WIDTH="4%" ALIGN="CENTER"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="94%" ALIGN="CENTER"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2>the growth of Asian-based automobile manufacturers in North America and Europe and declining production market shares at certain of our traditional North American and European customers;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
the growth of the automotive industry in China, Korea, India and other Asian countries, as well as parts of eastern Europe, and the migration of manufacturing to such lower cost countries;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
increased pressure by automobile manufacturers on automotive suppliers to reduce their prices, including through retroactive price reductions, and bear additional costs;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
increases in steel, resin and other commodity prices;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
the deterioration of the financial condition of the automotive supply base and certain automobile manufacturers;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
the consolidation of automotive suppliers;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
increased engineering capabilities required in order to be awarded new business for more complex systems and modules;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
increased outsourcing of larger modules;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
increased prevalence of vehicles built off high-volume global vehicle platforms; and</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
increased customer and consumer demand for lighter vehicles, additional safety features, improved comfort, convenience and space optimization features, alternative fuel systems and advanced electronics systems.</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Some
of these trends may present risks to our operations, profitability and/or financial condition. These risks are described in detail in the section titled "Item&nbsp;3. DESCRIPTION
OF THE BUSINESS&nbsp;&#151;&nbsp;RISK FACTORS," which all readers are strongly encouraged to consider carefully. </FONT></P>

<P><FONT SIZE=2><B>Growth of Asian-Based Automobile Manufacturers and Declining Market Shares of Certain North American and European Customers  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In recent years, Asian-based automobile manufacturers have seen significant increases in their production volumes as a result of strong consumer demand for their
vehicles. In order to meet this demand, as well as to offset fluctuations in currency exchange rates that could otherwise make their vehicles less competitive, some of these manufacturers, including
Toyota, Nissan, Honda, Hyundai and others, have opened or expanded North American and European manufacturing facilities, with a number of additional facilities being planned or in process.
Corresponding with the increase in production volumes and market shares of the Asian-based automobile manufacturers has been the decline in the North American market shares of the traditional North
American "Big 3" automobile manufacturers. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
number of factors, including the quality and cost effectiveness of North American automotive suppliers, currency fluctuations, the loosening of the traditional Japanese "keiretsu"
supplier relationships and the North American Free Trade Agreement, are expected to cause foreign-based automobile manufacturers to rely on increased outsourcing to increase the North American content
of their vehicles. Accordingly, these foreign-based automobile manufacturers represent significant growth potential for North American automotive suppliers. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>7</FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Asian-based
automobile manufacturers have also recently increased their manufacturing capacity in Europe and are expected to continue to do so from existing, expanded and new facilities.
The increased strength of the euro and the establishment of a common market throughout the European Union has assisted their growth in Europe. Accordingly, these Asian-based automobile manufacturers
also represent significant growth potential for European automotive suppliers. </FONT></P>

<P><FONT SIZE=2><B>Growth of Auto Industry in Emerging Markets and Migration of Manufacturing to Low Cost Countries  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The local demand for vehicles in emerging markets, such as China, India and parts of eastern Europe, has increased significantly in recent years. This increasing
local demand has helped boost the local automobile industry in these countries and has attracted investments in manufacturing from North American, European and Asian automobile manufacturers, through
stand-alone investments and joint ventures with local partners. In the next five years, the global automotive industry is expected to add significant production, with the majority of this growth in
lower cost, high growth regions of China, South East Asia and Central and Eastern Europe. Automotive suppliers have followed, and will likely continue to follow, the expansion of automobile
manufacturers into these regions in large part due to the relatively low manufacturing costs for labour-intensive manufacturing, as compared to Canada, the U.S., Western Europe and Japan. </FONT></P>

<P><FONT SIZE=2><B>Increased Pressure on Automotive Suppliers to Reduce Prices and Bear Additional Costs  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Automobile manufacturers have sought ways in which to reduce their costs of producing vehicles as competition for market share has become more intense. In
addition to seeking cost efficiencies in their own production, marketing and administrative structures, automobile manufacturers have placed significant pressure on automotive suppliers to reduce the
price of their components, assemblies, modules and systems. This pricing pressure has come in different forms, including through: long-term agreements containing pre-determined
price reductions for each year of a vehicle production program; price reduction demands, in addition to those contained in any long-term agreement and often including demands for
retroactive price reductions; pressure to absorb more design and engineering costs previously paid for by the automobile manufacturer and to recover these costs through amortization in the piece price
of the particular components designed or engineered by the supplier; pressure to assume or offset cost increases of commodities, including steel and resins; and pressure to own and/or capitalize
tooling and recover these costs through amortization in the piece price of the components produced by this tooling. In many cases, suppliers bear the risk of not being able to fully recover the
design, engineering and tooling costs if the particular vehicle production volumes are lower than anticipated or if programs are terminated early. This pricing pressure has intensified, due to the
competitive environment of the automotive industry in North America and Europe. In addition, automobile manufacturers are increasingly requesting that their suppliers bear the cost of the repair and
replacement of defective products which are either covered under the automobile manufacturers' warranty and/or are the subject of a recall. </FONT></P>


<P><FONT SIZE=2><B>Increases in Steel, Resin and Other Commodity Prices  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have experienced significant price increases for key commodities used in parts production, particularly steel and resin. We expect steel prices will remain at
elevated levels in 2006 compared to levels earlier this decade. In order to reduce the exposure to steel price increases, suppliers usually acquire steel through a combination of resale programs
operated by the automobile manufacturers, which do not expose suppliers to steel price increases, as well as spot, short-term and long-term contracts. Suppliers also attempt to
reduce the impact of steel price increases through the sale of scrap steel, which is generated by the parts production process, although the market for scrap steel is different and prices for scrap
steel can, at times, move in the opposite direction from steel prices. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>8</FONT></P>

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<P><FONT SIZE=2><B>Deterioration of the Financial Condition of the Supply Base and Certain Automobile Manufacturers  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rising health care, pension and other post-employment benefit costs are having a significant adverse effect on the profitability and competitiveness
of a number of North American and European automobile manufacturers and suppliers. Increased raw material prices, including steel and resins, are also having a significant financial impact on these
manufacturers and suppliers, as are other factors such as increased gas prices, which are affecting sales of sport utility vehicles, and the declining consumer demand and market share for some
automobile manufacturers, discussed above. In response to these factors, some automobile manufacturers have further increased the pressure on suppliers to reduce prices and have also initiated
rationalization/restructuring plans to reduce their production capacity. As a result of the intense competition, one significant customer, MG Rover, has ceased operations and several sizeable
competitors, such as Delphi Corporation and Dana Corporation, have sought court protection from their creditors. The deterioration of the financial condition of significant customers exposes
automotive suppliers to increased credit risk. The deterioration of the financial condition of the supply base may also present opportunities for financially sound suppliers to secure new and
"takeover" business, but it could lead to supply disruptions which could affect a number of other suppliers to the customers primarily affected by such supply disruptions. </FONT></P>

<P><FONT SIZE=2><B>Consolidation of the Supply Base  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a result of a number of factors such as supplier bankruptcies, the increasing demands of automobile manufacturers and mergers and acquisitions, the automotive
supply industry has seen a wave of consolidation in recent years. Automobile manufacturers have indicated their preference for dealing more intensively with a much smaller number of key suppliers. For
example, DaimlerChrysler instituted its Highly Integrated Partnership Organizations ("HI-POs") model of cooperation with suppliers, in which suppliers like us will have early involvement
in the product development of future models. Similarly, Ford has entered into Aligned Business Framework agreements with select suppliers like us. This consolidation may afford opportunities for the
stronger, more technically capable automotive suppliers to secure higher content per vehicle. </FONT></P>

<P><FONT SIZE=2><B>Need for Increased Engineering Capabilities  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Historically, automotive suppliers had a relatively limited role in the vehicle development process. Development of a vehicle from concept to production often
took seven to eight years, with automobile manufacturers designing and engineering the vehicle as a whole, as well as many of the specific components required to make the vehicle. Automobile
manufacturers also performed a significant portion of the quality control testing and component sub-assembly required. The role of their suppliers was limited to manufacturing components
in accordance with the design and engineering specifications supplied by automobile manufacturers, which often purchased the same parts from different suppliers, including affiliated component
suppliers. The components delivered to the automobile manufacturers often formed part of significant inventories stored by the automobile manufacturers. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Currently,
Tier&nbsp;1 suppliers are increasingly involved at early stages in the design, engineering and development of components, systems and modules and have assumed increased
responsibility for sub-assembly work, systems integration, quality control testing and component, system and module validation. In order to continue to achieve this, Tier&nbsp;1
suppliers have had to make significant investments in their engineering capabilities and expertise. Such investments include fixed assets, highly skilled employees and technology. In some cases,
suppliers have assumed responsibility for designing, engineering, developing and assembling significant portions of vehicles, including modules and systems and in certain cases even complete vehicles.
This trend toward increased engineering at the Tier&nbsp;1 supplier level provides those Tier&nbsp;1 suppliers that have such capabilities with increased opportunities to provide increasingly
larger, more complex modules (with increased content and features) to the automobile manufacturers. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>9</FONT></P>

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<P><FONT SIZE=2><B>Increased Outsourcing of Larger Modules  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Automobile manufacturers have increasingly satisfied their needs in reducing costs and capital expenditures, minimizing development time and capitalizing on the
technical and engineering expertise of Tier&nbsp;1 suppliers by outsourcing larger assemblies and modules. In order to properly manage the production of outsourced modules, Tier&nbsp;1 suppliers
have had to expand their capabilities and expertise, including their program management and logistics capabilities, technical understanding of systems beyond their own products, integration of various
systems and components, and, in some cases, niche vehicle development, including engineering, testing and assembly. </FONT></P>

<P><FONT SIZE=2><B>Increased Prevalence of Vehicles Built Off High Volume Global Vehicle Platforms  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To maximize economies of scale and remain competitive, automobile manufacturers continue to broaden the range of vehicles built from a single high volume global
platform. This allows an automobile manufacturer to differentiate its products from those of its competitors, to expand the number of market segments in which it competes, to extend the life of
existing vehicle platforms, to respond to lifestyle trends and to meet the tastes of consumers. Examples of the types of vehicles which can be built off a single vehicle platform include convertibles,
sports cars and all-wheel drive and four-wheel drive sport utility or cross-over vehicles. This trend provides Tier&nbsp;1 suppliers increased opportunities to
supply larger volumes of products which may be common across multiple vehicles built off the same platform and, in some cases, to provide niche vehicle engineering and assembly. </FONT></P>

<P><FONT SIZE=2><B>Increased Customer and Consumer Demand For a Variety of Features  </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The automotive industry is currently experiencing increased customer and consumer demand for a variety of features, including: </FONT></P>

<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>lighter
 vehicles; </FONT></DD></DL>
</UL>
<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>additional
 safety features; </FONT></DD></DL>
</UL>
<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>improved
 comfort, convenience and space optimization features; </FONT></DD></DL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>alternative
 propulsion systems; and </FONT></DD></DL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>advanced
 electronics systems. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Suppliers
which emphasize technological innovation and broad product capabilities are expected to benefit from the growing demand for these features. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="da1343_our_business_strategy"> </A>
<A NAME="toc_da1343_2"> </A>
<BR></FONT><FONT SIZE=2><B>OUR BUSINESS STRATEGY    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the short-term, we seek to refine our operations through continuous improvement, while refining our product strategy to target specific customers.
More generally, we aim to capitalize on the recent trends in the automotive industry discussed above, including by diversifying our customer base, expanding our manufacturing footprint, continuing to
emphasize technology and innovation, capitalizing on increased outsourcing and growing our content per vehicle through new, successor and takeover business. The main elements of our business strategy
are described below. </FONT></P>

<P><FONT SIZE=2><B><I>Continuous Improvement  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the short-term, we are focused on continuous improvement of our manufacturing and assembly operations to achieve our goal of being the best
supplier in terms of quality, efficiency and profitability. In order to achieve this, we continue to implement initiatives in Magna-wide purchasing coordination to reduce our supply base
and leverage the scale of our purchasing volumes. Additionally, with the completion of the privatizations of Decoma, Intier and Tesma, we are strengthening the sharing of best practices across Magna
and fully implementing them in our business. We are also seeking and implementing cost reduction ideas from our employees and supply base and ensuring that we efficiently launch business that we have
been awarded for 2006. Finally, we are reinforcing all aspects of our Employee Charter and fully utilizing the ideas, efforts and energy of our employees. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>10</FONT></P>

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<P><FONT SIZE=2><B><I>Refining Product Strategy to Target Specific Customers  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are refining our product strategy based on our current and planned manufacturing footprint, as well as the technological innovations we possess or are bringing
to market. In connection with this initiative, we intend to focus on our customers that are most willing to work for our mutual benefit, including through joint improvement of efficiencies and
reduction of costs. This refined product strategy, together with our innovation roadmap and customer strategy, will shape our capital expenditures, research and development investment and acquisition
strategy. </FONT></P>

<P><FONT SIZE=2><B><I>Diversification of Customer Base  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although we have sales to all of the world's largest automobile manufacturers, the proportion of our business with the traditional "Big 3" in North America is
high, while the proportion of our business with Asian and French-based automobile manufacturers is lower than their respective proportions of global vehicle production. We have made progress in
diversifying our customer base, but aim to increase it significantly in coming years by continuing to demonstrate our technical capabilities and quality and aggressively pursuing new programs. </FONT></P>

<P><FONT SIZE=2><B><I>Expand Global Footprint  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In recognition of the fact that much of the future growth potential in the automotive industry lies in new markets, we seek to expand our global footprint to take
advantage of growing vehicle production in these emerging markets, primarily in China, other parts of South East Asia, India, Central and Eastern Europe and South Africa. In engaging in this
geographic expansion, we will also be focused on ensuring that we can successfully compete in products that can be delivered globally. </FONT></P>

<P><FONT SIZE=2><B><I>Emphasis on Technology and Innovation  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We believe that one of the cornerstones of our past success has been our commitment to research, development and technological innovation. This commitment is
enshrined in our Corporate Constitution, which requires us to allocate annually a minimum of 7% of our pre-tax profits (as&nbsp;defined in the Corporate Constitution) to research and
development. We intend to continue directing significant effort to bringing new products and processes to market and will seek to purchase or license innovative technologies that we believe will
provide additional value to us and our customers. Our efforts regarding new products and processes have generated a number of recent innovations, including in the areas of vehicle weight reduction,
safety systems, comfort, convenience and space optimization, alternative propulsion systems and advanced electronics systems. See "RECENT DEVELOPMENTS IN OUR
BUSINESS&nbsp;&#151;&nbsp;New&nbsp;Products and Technologies". </FONT></P>

<P><FONT SIZE=2><B><I>Capitalizing on Increased Outsourcing  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have the expertise to work with our customers from concept to completion, from the design and engineering of a complete vehicle and its systems through to its
final assembly. We are a leading supplier of advanced, total vehicle engineering, the world's largest independent assembler of complete vehicles and we produce components, modules and systems for most
major areas of a vehicle. Our broad product capabilities distinguish us from our competitors and we intend to capitalize on these capabilities to continue to secure new business. </FONT></P>

<P><FONT SIZE=2><B><I>Growing Content Per Vehicle  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We currently possess a major market share in a number of product areas in which we compete and maintain strong relationships with most major automobile
manufacturers in North America and Europe. As a result of these relationships, we have increased our average dollar content per vehicle in North America from approximately $146 in fiscal 1995 to
approximately $731 in 2005, which represents a compound annual growth rate of approximately 17%, and in Europe from approximately $41 in fiscal 1995 to approximately $317 in 2005, which represents a
compound annual growth rate of approximately 22%. We continue to pursue new programs and "takeover" business from our customers, with particular emphasis on foreign-based automobile manufacturers. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>11</FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="da1343_operating_structure_and_principles"> </A>
<A NAME="toc_da1343_3"> </A>
<BR></FONT><FONT SIZE=2><B>OPERATING STRUCTURE AND PRINCIPLES    <BR>    </B></FONT></P>

<P><FONT SIZE=2><B>Decentralization  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We follow a corporate policy of functional and operational decentralization, which we believe increases flexibility, customer responsiveness and productivity. Our
manufacturing and assembly operations are conducted through divisions, each of which is an autonomous business unit operating within pre-determined guidelines. Each division is a separate
profit center under the authority of a general manager who has the discretion to determine rates of pay, hours of work, sources of supply and contracts to be performed, within the framework of our
Corporate Constitution and our Employee Charter. Our divisions are aligned by geographic region in each of our product areas. Within a number of our product areas, we have regional management teams
which are responsible for maintaining key customer, supplier and government contacts in their respective markets, while permitting our divisions enough flexibility through our decentralized structure
to foster an entrepreneurial environment. Our executive management teams in North America and Europe coordinate advanced systems development and manufacturing, allocate capital, ensure customer and
employee satisfaction and manage succession planning within their respective regions. Our Corporate management team also interfaces with the investment community and our entire executive management
team is responsible for our long-term strategic planning and future growth, as well as monitoring the performance of the management of our divisions. </FONT></P>

<P><FONT SIZE=2><B>Privatization of Spincos  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 1982, our shareholders approved our Spinco policy of developing our automotive systems groups into self-sufficient public companies. The objective
of this Spinco policy, which was in furtherance of our commitment to decentralization, was to establish one or more automotive systems groups as separate public corporations, or Spincos, over a period
of time, while we remained as a major shareholder. Our role was to provide operational, technical, marketing and financial management and other services from time to time to each Spinco for an agreed
upon affiliation fee. Historically, our Spinco policy provided us with numerous benefits, including increased decentralization and autonomy, improved operating flexibility, motivation of senior
management and greater accountability and public scrutiny. Between 1995 and 2001, we spun-off three of our automotive systems groups into separate public
companies&nbsp;&#151;&nbsp;Tesma International&nbsp;Inc. (1995), Decoma International&nbsp;Inc. (1998) and Intier Automotive&nbsp;Inc. (2001). However, changing industry
conditions, such as opportunities to meet our customers' needs for larger modules that involve two or more of our current product groups, necessitated a re-examination of our Spinco
policy. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
October&nbsp;2004, we made separate proposals to the respective boards of directors of each of our three public subsidiaries, Decoma, Intier and Tesma, in each case to acquire all
of the outstanding shares of each subsidiary not owned by us. The decision to make these proposals followed a review of our Spinco policy by, and recommendation of, a special committee of independent
directors of our Board. During the first quarter of 2005, we completed the acquisition of the shares of Tesma and Decoma and in April&nbsp;2005 we completed the acquisition of the shares of Intier.
These privatizations have allowed us to improve our strategic positioning and to better exploit our various competencies, particularly our complete vehicle expertise. In addition, these privatizations
have allowed us to re-align our product portfolio, for example, by combining the powertrain capabilities of our former Tesma and Magna Drivetrain businesses, and to avoid duplication of
investment, particularly in new markets. We were also able to improve our financial liquidity by completing a new five-year revolving term credit facility that expires on
October&nbsp;12, 2010. The new facility replaced the various existing credit lines in place prior to the privatizations. </FONT></P>

<P><FONT SIZE=2><B>Realignment of Product Portfolio  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Following the completion of the privatizations of Decoma, Intier and Tesma, we re-aligned our product portfolio and strengthened our management team.
Our seven former automotive systems groups were re-aligned on the basis of geographic and product area and Co-Chief Executive Officers were appointed with responsibility for
North America and Europe, our primary markets. We also began to segment our financial results on a geographic basis between North America, Europe and Rest of World. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>12</FONT></P>

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<P><FONT SIZE=2><B>Reorganizations  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Between 1998 and 2003, we transferred substantially all of our automotive real estate assets to MI Developments. Further to a commitment made to our shareholders
in 1998, all of our non-automotive assets (including non-automotive real estate) were transferred to Magna Entertainment. In March&nbsp;2000, we completed the
spin-off of approximately 20% of the voting equity of Magna Entertainment by way of stock dividend and, in August&nbsp;2003, we divested all of our ownership interests in MI Developments
and Magna Entertainment in a further spin-off transaction. See "SPIN-OFF OF MI DEVELOPMENTS&nbsp;INC. AND MAGNA ENTERTAINMENT CORP." below. </FONT></P>

<P><FONT SIZE=2><B>Operating Principles  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are committed to a number of operating principles, including employee equity participation and profit sharing, incentive-based management compensation and an
employee charter. See "ITEM 3. DESCRIPTION OF THE BUSINESS&nbsp;&#151;&nbsp;HUMAN RESOURCES" below. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="da1343_recent_developments_in_our_business"> </A>
<A NAME="toc_da1343_4"> </A>
<BR></FONT><FONT SIZE=2><B>RECENT DEVELOPMENTS IN OUR BUSINESS    <BR>    </B></FONT></P>

<P><FONT SIZE=2><B>New&nbsp;Products and Technologies  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We believe that a significant portion of our internally generated sales growth in recent years has been due to our design and engineering capabilities and product
innovation, which generally results in complex and highly engineered products which generate better returns than commodity-type products. This product innovation has resulted in the
introduction of a number of significant automotive products and technologies, including the following recent ones: </FONT></P>

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<TR VALIGN="BOTTOM">
<TH WIDTH="53%" ALIGN="LEFT"><FONT SIZE=1><B>Functional Objective<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="3%" ALIGN="LEFT"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="39%" ALIGN="LEFT"><FONT SIZE=1><B>Magna Technological Innovation<BR> </B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="53%"><FONT SIZE=2>Weight Optimization</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" ALIGN="CENTER"><FONT SIZE=2>&#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="39%"><FONT SIZE=2>Ultra high strength steel</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="53%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" ALIGN="CENTER"><FONT SIZE=2>&#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="39%"><FONT SIZE=2>Hybrid (aluminum/steel) structures</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="53%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" ALIGN="CENTER"><FONT SIZE=2>&#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="39%"><FONT SIZE=2>Light weight composites</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="53%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" ALIGN="CENTER"><FONT SIZE=2>&#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="39%"><FONT SIZE=2>Light weight powertrain components</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="53%"><FONT SIZE=2>Safety</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" ALIGN="CENTER"><FONT SIZE=2>&#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="39%"><FONT SIZE=2>Slide-out VideoMirror&#153;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="53%"><FONT SIZE=2>Comfort, convenience and space optimization</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" ALIGN="CENTER"><FONT SIZE=2>&#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="39%"><FONT SIZE=2>Flexible cargo management system</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="53%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" ALIGN="CENTER"><FONT SIZE=2>&#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="39%"><FONT SIZE=2>Intellispace&#153; interior systems</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="53%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" ALIGN="CENTER"><FONT SIZE=2>&#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="39%"><FONT SIZE=2>Stow-in-floor seating</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="53%"><FONT SIZE=2>Alternative propulsion systems</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%" ALIGN="CENTER"><FONT SIZE=2>&#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="39%"><FONT SIZE=2>Hydrogen fuel tank development</FONT></TD>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=2>13</FONT></P>

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<P><FONT SIZE=2><B>Material Acquisitions and Divestitures  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have engaged in a number of acquisitions, divestitures, financings and securities transactions in the last three years, including the following: </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
February&nbsp;2006, we completed the acquisition from Porsche of CTS Fahrzeug-Dachsysteme&nbsp;GmbH, Bietigheim-Bissinger, one of the world's leading manufacturers of roof systems
for the automotive industry. The cash purchase price of
170&nbsp;million euros plus assumed debt was satisfied on closing. CTS has six facilities in Europe and two in North America, with approximately 1,100&nbsp;employees. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
2005, we completed the acquisition of a number of small manufacturing facilities. The total consideration paid by us for these acquisitions amounted to approximately
$21&nbsp;million of cash (net&nbsp;of cash acquired) and $12&nbsp;million of assumed debt. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
September&nbsp;29, 2004, we completed the acquisition of the worldwide operations of DaimlerChrysler Corporation's wholly-owned subsidiary, New&nbsp;Venture Gear,&nbsp;Inc. The
transaction involved the creation of a new joint venture, New&nbsp;Process Gear,&nbsp;Inc., initially owned 80% by us and 20% by DaimlerChrysler Corporation, to operate a manufacturing facility in
Syracuse, New&nbsp;York. We will acquire DaimlerChrysler's interest in New&nbsp;Process Gear in September&nbsp;2007. The transaction also involved the acquisition by us of certain other U.S. and
European assets of New&nbsp;Venture Gear, including a manufacturing facility in Roitzsch, Germany and a research and development centre and sales office in Troy, Michigan. The New&nbsp;Venture
Gear acquisition provided us with additional technological and manufacturing capacity and resources to take advantage of opportunities for sales growth in the drivetrain market. The total purchase
price for 100% of New&nbsp;Venture Gear's business was $428&nbsp;million, subject to post-closing adjustments. The purchase price was satisfied with a combination of
$348&nbsp;million in cash (net&nbsp;of cash acquired of $3&nbsp;million) and $80&nbsp;million in zero-coupon notes payable to DaimlerChrysler, which have a face value of
$95&nbsp;million and are due in December&nbsp;2008. During 2005, the purchase equation for the New&nbsp;Venture Gear acquisition was finalized, which resulted in a cash purchase price adjustment
of $18&nbsp;million in our favour. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
January&nbsp;2004, Tesma completed the acquisition of Davis Industries,&nbsp;Inc., a powertrain components and assemblies supplier with three manufacturing plants in Indiana and
Tennessee and an engineering centre in Michigan, for a purchase price of approximately $75&nbsp;million, consisting of $45&nbsp;million paid in cash and $30&nbsp;million of assumed debt. This
acquisition increased Tesma's manufacturing capabilities in the United&nbsp;States, including the south, providing Tesma with a closer presence to some of its non-traditional customers. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
2004, we also completed several smaller acquisitions, including a number of manufacturing facilities and engineering centres. The total consideration for the above noted
acquisitions amounted to approximately $102&nbsp;million, consisting of $69&nbsp;million paid in cash and $33&nbsp;million of assumed debt. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
August&nbsp;2003, we distributed to our shareholders 100% of MI Developments, which owns a majority of our automotive real estate and all of our former controlling equity interest
in Magna Entertainment. See "SPIN-OFF OF MI DEVELOPMENTS&nbsp;INC. AND MAGNA ENTERTAINMENT CORP." below. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the future, we will continue to consider acquisitions of new technologies and strategic assets that complement our current portfolio of automotive technologies or expand our product
breadth, provided that any such acquisition furthers our overall business strategy and potentially enhances our long-term earnings growth. In addition, we will consider acquisitions that
will potentially diversify our customer base, provide us with installed capacity at an economical rate or involve the purchase of key assets at a discounted price. We will also continue to consider
joint ventures with other suppliers in order to increase our business opportunities in various regions and enhance our relationships with certain automobile manufacturers. We generally analyze
potential acquisitions and joint ventures using discounted cash flow criteria in an effort to secure shareholder returns and earnings growth. However, we expect that we will continue to expand
primarily through organic growth. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>14</FONT></P>

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<P><FONT SIZE=2><B>Financings and Securities Transactions  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In October, 2005, we completed a new five-year revolving term facility that expires on October&nbsp;12, 2010. The facility has a North American
tranche of $1.57&nbsp;billion, a European tranche of 300&nbsp;million euros and an Asian tranche of $50&nbsp;million. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
April&nbsp;4, 2005, we issued 2,332,748&nbsp;Class&nbsp;A Subordinate Voting Shares in exchange for Intier's Class&nbsp;A Subordinate Voting Shares as part of our
privatization of Intier. See "OPERATING STRUCTURE AND PRINCIPLES&nbsp;&#151;&nbsp;Privatization of Spincos" above. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
March&nbsp;6, 2005, we issued 2,854,400&nbsp;Class&nbsp;A Subordinate Voting Shares in exchange for Decoma's Class&nbsp;A Subordinate Voting Shares as part of our
privatization of Decoma. See "OPERATING STRUCTURE AND PRINCIPLES&nbsp;&#151;&nbsp;Privatization of Spincos" above. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
part of the privatization of Decoma, we assumed Decoma's obligations in respect of its 6.5% Convertible Debentures in the principal amount outstanding of Cdn.$99,998,000 and maturing
on March&nbsp;31, 2010. Accordingly, these Convertible Debentures are convertible in whole or in part into our Class&nbsp;A Subordinate Voting Shares at a rate of Cdn.$91.19 for each of our
Class&nbsp;A Subordinate Voting Shares. As a result, the principal amount of these Convertible Debentures is convertible into 1,096,590 of our Class&nbsp;A Subordinate Voting Shares. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
February&nbsp;6, 2005, we issued 6,687,709&nbsp;Class&nbsp;A Subordinate Voting Shares in exchange for Tesma's Class&nbsp;A Subordinate Voting Shares as part of our
privatization of Tesma. See "OPERATING STRUCTURE AND PRINCIPLES&nbsp;&#151;&nbsp;Privatization of Spincos" above. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
connection with the New&nbsp;Venture Gear acquisition (see&nbsp;"Acquisitions and Divestitures" above), we issued five series of unsecured zero-coupon notes on
September&nbsp;29, 2004 with an aggregate issue price of Cdn.$365&nbsp;million ($287&nbsp;million on issue date) and an aggregate amount due at maturity of Cdn.$415&nbsp;million. The notes,
which mature on various dates to December&nbsp;2008, were sold in Canada on an underwritten private placement basis. The first and second series of notes, each having an amount due at maturity of
Cdn.$55&nbsp;million and having maturity dates of January&nbsp;5, 2005 and January&nbsp;4, 2006, respectively, have been repaid. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
September&nbsp;2004, we redeemed all of our outstanding 8.65% Series&nbsp;A Preferred Securities and 8.875% Series&nbsp;B Cumulative Quarterly Income Preferred Securities
for $300&nbsp;million in cash. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
August&nbsp;2003, the Toronto Stock Exchange and the New&nbsp;York Stock Exchange accepted notices of our intention to purchase for cancellation and/or for the purposes of our
long-term retention (restricted share) program, up to 3,000,000 of our Class&nbsp;A Subordinate Voting Shares, representing less than 5% of our issued and outstanding Class&nbsp;A
Subordinate Voting Shares, pursuant to a normal course issuer bid. Our normal course issuer bid, which was subject to a maximum aggregate expenditure of $200&nbsp;million, commenced on
August&nbsp;12, 2003, following the expiry of our prior normal course issuer bid on August&nbsp;11, 2003, and expired on August&nbsp;11, 2004. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="da1343_spin-off_of_mi_developments_in__spi02332"> </A>
<A NAME="toc_da1343_5"> </A>
<BR></FONT><FONT SIZE=2><B>SPIN-OFF OF MI DEVELOPMENTS&nbsp;INC. AND MAGNA ENTERTAINMENT CORP.    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In September&nbsp;2003, we spun-off to our shareholders 100% of MI Developments&nbsp;Inc., which operates as a publicly-traded company and owns a
majority of our automotive real estate and a controlling equity interest in Magna Entertainment Corp. The transaction, which was approved by the holders of our Class&nbsp;A Subordinate Voting Shares
and Class&nbsp;B Shares, with each class voting separately, was effected as a return of capital to our shareholders by way of a distribution of all of the outstanding shares of MI Developments on
September&nbsp;2, 2003, on the basis of one Class&nbsp;A Subordinate Voting Share of MI Developments for every two of our Class&nbsp;A Subordinate Voting Shares, and one Class&nbsp;B Share of
MI Developments for every two of our Class&nbsp;B Shares, in each case to our shareholders of record as of the close of business on August&nbsp;29, 2003. Also on August&nbsp;29, 2003, we
completed a reorganization of our controlling equity interest in Magna Entertainment and, as a result, it became held solely by MI Developments. Previously, in March&nbsp;2000, we completed the
spin-off of approximately 20% of the voting equity of Magna Entertainment. As a result of these transactions, we no longer have any ownership interest in either of MI Developments or Magna
Entertainment. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>15</FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
continue to occupy and use the automotive real estate owned by MI Developments, pursuant to long-term leases. We have also in the past engaged in real estate development
activities directly with competitors of MI Developments. We believe that the terms of our leases with MI Development are on arm's length commercial terms. Any material lease, construction or other
arrangements with MI Developments are reviewed and approved by our Corporate Governance and Compensation Committee in advance of any commitments by us or any of our subsidiaries. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
a result of the spin-off transaction, our financial results for 2003 were restated to reflect the financial results of Magna Entertainment as discontinued operations.
However, because we continue to occupy the automotive real estate under long-term leases with MI Developments, the operations of MI Developments' real estate business are disclosed as
continuing operations in our financial statements until August&nbsp;29, 2003. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
anticipation of the spin-off of Magna Entertainment, we entered into a Forbearance Agreement in 1999 which restricted our ability to make debt or equity investments in, or
give financial assistance to Magna Entertainment. This agreement also restricts our ability to invest in any business or assets determined in good faith by our independent directors to be
non-automotive related and not ancillary or incidental to our automotive related business. This agreement will expire in accordance with its terms on May&nbsp;31, 2006 and will not be
extended. </FONT></P>

<P><FONT SIZE=2><B>ITEM 3.&nbsp;&nbsp;&nbsp;&nbsp;DESCRIPTION OF THE BUSINESS  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We operate internationally through divisions, which function as autonomous business units operating within pre-determined guidelines. Our divisions
have been aligned on a geographic basis in order to meet the needs of our customers and respond to regional economic and industry factors, including interest rates, fuel prices and availability,
infrastructure, legislative changes, environmental emission and safety issues and labour and/or trade relations. Accordingly, we operate in three geographic
markets&nbsp;&#151;&nbsp;North America, Europe and Rest of World, each of which is a separate reporting segment. In recognition of the importance of our two primary geographic
markets, North America and Europe, we have appointed a Co-Chief Executive Officer with responsibility for each of these regions. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
also maintain corporate and other operations, which constitute a separate reportable segment, that consist of operations that support or are ancillary to our automotive operations and
included our automotive real estate operations until the spin-off of MI Developments on August&nbsp;29, 2003. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>16</FONT></P>

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<BR></FONT><FONT SIZE=2><B>PRODUCT CAPABILITIES    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Despite operating and managing our business on a geographic basis, we possess product capabilities which span across such geographic regions. These capabilities
include: </FONT></P>

<P><FONT SIZE=2><B>Metal Body&nbsp;&amp; Chassis Systems  </B></FONT></P>

<P><FONT SIZE=2><I>Cosma International  </I></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We offer metal body and chassis products and design and engineering services through divisions located in North America (Canada, United&nbsp;States and Mexico),
Europe (Germany, Austria, France, Ireland, Poland and the Czech Republic) and Rest of World (Japan, Korea, India and China). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Examples
of the types of metal body and chassis systems and products we offer include: </FONT></P>

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<TH WIDTH="49%" ALIGN="LEFT"><FONT SIZE=1><B><I>Body Systems<BR> </I></B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="49%" ALIGN="LEFT"><FONT SIZE=1><B><I>Chassis Systems<BR> </I></B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2>Complete Body-In-White<BR>
Floor Pans<BR>
Underbody Assemblies<BR>
Door/Hood/Deck Assemblies<BR>
Roof Panels<BR>
Fender/Quarter Panels<BR>
Tailgate/Liftgate Assemblies<BR>
A, B, C and D Pillars<BR>
Bumper Beams<BR>
Door Intrusion Systems<BR>
Oil Strainers<BR>
Heat Shields</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2>Crossmember Assemblies<BR>
Radiator Supports<BR>
Shock Towers<BR>
Engine Cradles<BR>
Front and Rear Sub-Frame Assemblies<BR>
Front and Rear Suspension Modules<BR>
Control Arms<BR>
Frame Rails<BR>
Full Frame Assemblies</FONT></TD>
</TR>
</TABLE>
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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
also possess extensive capabilities relating to the building of prototypes and concept vehicles, as well as designing, engineering and building the tools, dies and assembly equipment
necessary for the production of our metal body and chassis products. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
metal body and chassis systems divisions employ a number of different metalforming technologies such as hydroforming, stamping, roll forming, draw bending, hot stamping, advanced
welding technologies, as well as finishing technologies such as e-coating, heat treating and high temperature wax coating. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>17</FONT></P>

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<P><FONT SIZE=2><B>Plastic Body, Lighting and Exterior Trim Systems  </B></FONT></P>

<P><FONT SIZE=2><I>Decoma International  </I></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We offer a variety of plastic body, lighting and exterior trim systems through manufacturing divisions and engineering facilities located in North America
(Canada, United&nbsp;States and Mexico) and Europe (Germany, United&nbsp;Kingdom, Belgium, Poland and Austria). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Examples
of the types of plastic body, lighting and exterior trim systems and products we offer include: </FONT></P>

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<TABLE WIDTH="90%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="32%" ALIGN="LEFT"><FONT SIZE=1><B><I>Front and Rear Bumper Systems<BR> </I></B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="32%" ALIGN="LEFT"><FONT SIZE=1><B><I>Exterior Trim<BR> </I></B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="32%" ALIGN="LEFT"><FONT SIZE=1><B><I>Lighting Systems<BR> </I></B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2>Front and Rear Fascias<BR>
Front and Rear End Modules<BR>
Energy Management Systems<BR>
<BR></FONT> <FONT SIZE=1><B><I>Greenhouse Systems</I></B></FONT><HR NOSHADE><FONT SIZE=2>Backlit Mouldings<BR>
Belt and Windshield Mouldings<BR>
Pillar Appliques<BR>
Door Surround Mouldings<BR>
Roof Drip Mouldings<BR>
Cowl Screens<BR>
Window Surround Module<BR>
<BR></FONT> <FONT SIZE=1><B><I>Top Systems</I></B></FONT><HR NOSHADE><FONT SIZE=2>Hard/Soft Tonneau Covers<BR>
Light Bars</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="32%"><FONT SIZE=2>Body Side Mouldings and<BR>
&nbsp;&nbsp;&nbsp;&nbsp;Claddings<BR>
Wheel Opening Mouldings<BR>
Running Boards<BR>
Rocker Panels<BR>
Stone Guards/Mud Flaps<BR>
Vertical Body Panels<BR>
Front and Truckside Fenders<BR>
Spoilers and Grilles<BR>
Door Panels<BR>
Quarter Panels<BR>
<BR></FONT> <FONT SIZE=1><B><I>Sealing Systems</I></B></FONT><HR NOSHADE><FONT SIZE=2>Door Seals<BR>
Inner&nbsp;&amp; Outer Belt Seals<BR>
Glass Run Channels<BR>
Slide Door, Pop-Out Window and Liftgate Seals<BR>
Complete Convertible Sealing<BR>
&nbsp;&nbsp;&nbsp;&nbsp;System</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="32%"><FONT SIZE=2>Halogen Headlamps<BR>
Xenon Headlamps<BR>
Projector and Reflector Optics<BR>
LED Forward Lighting<BR>
Adaptive Lighting Systems<BR>
Fog Lamps<BR>
Rear Combination Lamps<BR>
Rear Lighting Appliques<BR>
High Mount Stop Lamps<BR>
LED Signal Lighting<BR>
Accessory Lighting<BR>
World Homologated Lamps<BR>
<BR></FONT> <FONT SIZE=1><B><I>Polymeric Glazing Systems</I></B></FONT><HR NOSHADE><FONT SIZE=2>Backlites and Quarter Windows<BR>
Decklid Appliques<BR>
Fixed Vent Windows<BR>
Sun Roof, T-Tops and Targa Roofs</FONT></TD>
</TR>
</TABLE>
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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
utilize a number of different technologies in connection with these products, including: moulding technologies, such as injection moulding, structural reaction injection, reaction
injection, compression and thermoset moulding; metal forming processes, like metal stamping, roll forming, tube forming and stretch bending; extrusion processes, such as co-extrusion,
thermoset and thermoplastic extrusion; and finishing processes, including painting, hardcoating, chrome plating, vacuum metallization and anodizing. In addition to our primary manufacturing
capabilities in this product area, we also perform second stage vehicle assembly work, primarily for General Motors and DaimlerChrysler's MOPAR specialty vehicle production programs. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>18</FONT></P>

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<P><FONT SIZE=2><B>Closure Systems  </B></FONT></P>

<P><FONT SIZE=2><I>Magna Closures  </I></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We offer automotive closure systems and/or product design, engineering, testing and validation services, through divisions located in North America (Canada,
United&nbsp;States and Mexico), Europe (Germany, Italy, Poland, France and the Czech Republic) and Rest of World (Brazil and China). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Examples
of the types of closures systems and products we offer include: </FONT></P>

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<TR VALIGN="BOTTOM">
<TH WIDTH="32%" ALIGN="LEFT"><FONT SIZE=1><B><I>Door Modules<BR> </I></B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="32%" ALIGN="LEFT"><FONT SIZE=1><B><I>Power Closure Systems<BR> </I></B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="32%" ALIGN="LEFT"><FONT SIZE=1><B><I>Latching Systems<BR> </I></B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2>Complete Door Modules<BR>
Sealed Modules<BR>
Hardware Trim Modules<BR>
Integrated Trim Modules<BR>
Structural Plastic Modules<BR>
Liftgate and Tailgate Modules<BR>
Mid-Door Modules<BR>
<BR></FONT> <FONT SIZE=1><B><I>Window Systems</I></B></FONT><HR NOSHADE><FONT SIZE=2>Single and Dual Rail Systems<BR>
Cable and Drum Systems<BR>
Arm and Sector Systems<BR>
Quarter Systems<BR>
Rear Window Systems<BR>
Integrated Electronics<BR>
Obstacle Detection</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="32%"><FONT SIZE=2>Power Sliding Doors<BR>
Power Liftgates<BR>
Integrated Electronics<BR>
Obstacle Detection<BR>
<BR></FONT> <FONT SIZE=1><B><I>Driver Controls</I></B></FONT><HR NOSHADE><FONT SIZE=2>Adjustable Pedals<BR>
Fixed Pedals<BR>
Park Brakes</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="32%"><FONT SIZE=2>Side Door Latches<BR>
Sliding Door Latches<BR>
Liftgate Latches<BR>
Hood Latches<BR>
Tailgate, Decklid Latches<BR>
Actuator Assemblies<BR>
<BR></FONT> <FONT SIZE=1><B><I>Handle Assemblies</I></B></FONT><HR NOSHADE><FONT SIZE=2>Inside Handles<BR>
Outside Handles</FONT></TD>
</TR>
</TABLE>
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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
primary processes used in our closures operations are light stamping and assembly. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition to our manufacturing capabilities in this product area, we operate the Closures Technical Centre which provides us with full testing capabilities for the development and
evaluation of automobiles, modules, systems and components. In particular, the Closures Technical Centre contains a vehicle sound chamber for acoustics testing. This vehicle sound chamber enables
noise characteristic and sound quality testing to be conducted on a wide range of closure systems, including power sliding doors, power window regulators and door latches, and it assists us in
engineering components and systems with reduced noise, vibration and harshness. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>19</FONT></P>

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<P><FONT SIZE=2><B>Interior Systems  </B></FONT></P>

<P><FONT SIZE=2><I>Intier Automotive Interiors  </I></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We offer a range of automotive interiors systems and products, as well as market and consumer research, concept development, design and engineering,
electronics/electrical integration, testing and validation, and program management services through divisions located in North America (United&nbsp;States, Canada and Mexico), Europe
(United&nbsp;Kingdom, Germany, Austria and Spain) and Rest of World (through joint ventures in China and Korea). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Examples
of the types of interior systems and products we offer include: </FONT></P>

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<TR VALIGN="BOTTOM">
<TH WIDTH="32%" ALIGN="LEFT"><FONT SIZE=1><B><I>Sidewall and Trim Systems<BR> </I></B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="32%" ALIGN="LEFT"><FONT SIZE=1><B><I>Cockpit Systems<BR> </I></B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="32%" ALIGN="LEFT"><FONT SIZE=1><B><I>Overhead Systems<BR> </I></B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2>Door Trim Modules<BR>
Interior Garnish Trim<BR>
Door and Side Panels<BR>
Rear Cargo and Trunk Trim<BR>
&nbsp;&nbsp;&nbsp;&nbsp;Systems<BR>
Package Trays</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="32%"><FONT SIZE=2>Cockpit Modules<BR>
Instrument Panels<BR>
Multiple Surface Materials (Soft,<BR>
&nbsp;&nbsp;&nbsp;&nbsp;Hard and Grain Options)<BR>
Floor Consoles<BR>
<BR></FONT> <FONT SIZE=1><B><I>Cargo Management Systems</I></B></FONT><HR NOSHADE><FONT SIZE=2>Sliding and Stationary Load Floors<BR>
Accessible Floor Bins<BR>
Multi-Level Shelf Systems<BR>
Integrated Cargo Organizers</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="32%"><FONT SIZE=2>Complete Overhead Systems<BR>
Headliner Substrates<BR>
Sunvisors<BR>
Consoles<BR>
Grab Handles<BR>
Lighting<BR>
<BR></FONT> <FONT SIZE=1><B><I>Floor Carpet and Complete Vehicle Acoustic Systems</I></B></FONT><HR NOSHADE><FONT SIZE=2>Carpet<BR>
Bootspace and Trunk Trim<BR>
Acoustic Countermeasures</FONT></TD>
</TR>
</TABLE>
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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
interior systems capabilities also include complete interior integration. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Some
of the technologies and processes involved with the foregoing include low pressure and injection moulding, compression moulding, vacuum forming, slush moulding and spray urethane. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
product capabilities in interior systems are conducted in part through several external joint ventures, including: </FONT></P>

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<TH WIDTH="4%" ALIGN="CENTER"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="94%" ALIGN="CENTER"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2>a 45% equity interest in Dakkota L.L.C., a joint venture with Rush Group L.L.C., a minority supplier certified by the Michigan Minority Business Development Council, which provides sequencing, logistics management and
assembly services with respect to several programs for which we supply interior systems products.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
a 50% equity interest in the Magna Kansei joint venture in the United&nbsp;Kingdom with Calsonic International Europe, which supplies instrument panels (including sequenced modular cockpits), door panels, consoles and other large mouldings for
vehicle interiors for BMW, Honda, Toyota, Nissan, Jaguar and Land Rover in Europe;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
a 60% equity interest in InterLink Automotive L.L.C., a Michigan joint venture with Llink Technologies L.L.C., which was created for the development, sales and marketing of sun visor and related products; and</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
a 50% interest in Dae Yee Intier&nbsp;Co.&nbsp;Ltd., a Korean joint venture with Dae Yee Industrial&nbsp;Co.,&nbsp;Ltd., Hansan&nbsp;Co.&nbsp;Ltd., and two Korean individual shareholders, which supplies instrument panels and related products in Korea
to General Motors Daewoo Automotive Technology.</FONT></TD>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=2>20</FONT></P>

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<P><FONT SIZE=2><B>Seating Systems  </B></FONT></P>

<P><FONT SIZE=2><I>Intier Automotive Seating  </I></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We offer full seating systems and seating hardware systems, as well as related market and consumer research, full concept development, design and engineering,
testing and validation services through divisions located in North America (Canada, United&nbsp;States and Mexico), Europe (Germany, United&nbsp;Kingdom, Spain, the Czech Republic, Poland and
Turkey) and Rest of World (through a joint venture in China). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Examples
of the types of seating systems and products we offer include: </FONT></P>

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<TR VALIGN="BOTTOM">
<TH WIDTH="49%" ALIGN="LEFT"><FONT SIZE=1><B><I>Seating Systems<BR> </I></B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="49%" ALIGN="LEFT"><FONT SIZE=1><B><I>Seating Hardware Systems<BR> </I></B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2>In-Vehicle Stowable Seating<BR>
<FONT FACE="WINGDINGS">&#216;</FONT> Stow-in-Floor<BR>
<FONT FACE="WINGDINGS">&#216;</FONT> Stow-to-Floor<BR>
<FONT FACE="WINGDINGS">&#216;</FONT> Other Specialty Options<BR>
Modular Seat Assemblies<BR>
Integrated Child Safety Seats<BR>
Integrated Occupant Safety Restraints<BR>
Trim Covers</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2>Specialty Mechanisms for In-Vehicle Seat Stowage<BR>
<FONT FACE="WINGDINGS">&#216;</FONT> Stow-in-Floor<BR>
<FONT FACE="WINGDINGS">&#216;</FONT> Stow-to-Floor<BR>
<FONT FACE="WINGDINGS">&#216;</FONT> Other Specialty Options<BR>
Manual Adjusters<BR>
Seat Height Adjusters<BR>
EZ Entry&#153; Mechanisms<BR>
Fold&nbsp;&amp; Tumble&#153; Mechanisms<BR>
Manual Recliners<BR>
Fold Flat Mechanisms<BR>
Specialty Latches<BR>
Spring Suspension Systems<BR>
Risers<BR>
Folding Load Floor Panels<BR>
Sliding Cargo Load Floor</FONT></TD>
</TR>
</TABLE>
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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Some
of the technologies and processes used in the manufacture of seating and seat components include traditional "cut&nbsp;&amp; sew" technology as well as our patented
Mold-In-Place&#153; technology. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Some
of our seating systems capabilities are offered through joint ventures, including the following external joint ventures: </FONT></P>

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<TH WIDTH="4%" ALIGN="CENTER"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="94%" ALIGN="CENTER"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2>a 50% equity interest in the Bloomington-Normal Seating Company, a joint venture with Namba Press Works&nbsp;Co.&nbsp;Ltd., which manufactures complete seating systems in Illinois for Mitsubishi;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
a 50% equity interest in the Shanghai Lomason Automotive Seating Company joint venture with Shanghai Jiao Yun&nbsp;Co.&nbsp;Ltd., which manufactures seat frames, metal stampings and complete aftermarket seats in China;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
a 50% equity interest in Gra-Mag Truck Interior Systems, L.L.C., a joint venture with Grammer AG with operations in Ohio and Michigan, which supplies seating systems to the North American medium and heavy duty truck market; and</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
a 32% equity interest in Camaco L.L.C., which is a registered minority supplier of seat frames with operations in Nebraska, Arkansas and Michigan, which supplies seat frames to us and other customers.</FONT></TD>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=2>21</FONT></P>

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<P><FONT SIZE=2><B>Mirror Systems  </B></FONT></P>

<P><FONT SIZE=2><I>Magna Donnelly  </I></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We offer a range of exterior and interior mirrors, as well as engineered glass products through divisions located in North America (United&nbsp;States and
Mexico), Europe (Germany, Austria, France, Ireland, Slovakia, Spain and Sweden) and Rest of World (China). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Examples
of the types of mirrors and engineered glass systems and products we offer include: </FONT></P>

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<TR VALIGN="BOTTOM">
<TH WIDTH="32%" ALIGN="LEFT"><FONT SIZE=1><B><I>Interior Mirrors (Prismatic and Electrochromic)<BR> </I></B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="32%" ALIGN="LEFT"><FONT SIZE=1><B><I>Exterior Mirrors<BR> </I></B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="32%" ALIGN="LEFT"><FONT SIZE=1><B><I>Engineered Glass<BR> </I></B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2>Compass/Temperature/Lighting<BR>
Microphones/OnStar<BR>
Rain Sensor<BR>
Display-on-Demand<BR>
Electronic Toll Collection</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="32%"><FONT SIZE=2>TurnSignal&#153;/Illuminator&#153; Mirror<BR>
PowerExtend&#153;/PowerFold&#153; Mirror<BR>
Frameless Electrochromic Mirror<BR>
<BR></FONT> <FONT SIZE=1><B><I>Camera Vision Systems</I></B></FONT><HR NOSHADE><FONT SIZE=2>Slideout VideoMirror&#153; with<BR>
&nbsp;&nbsp;&nbsp;&nbsp;ReversAid&#153;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="32%"><FONT SIZE=2>PVC&nbsp;&amp; RIM Encapsulation<BR>
Horizontal&nbsp;&amp; Vertical Power<BR>
&nbsp;&nbsp;&nbsp;&nbsp;Sliders<BR>
Flush Sunroof&#153; System<BR>
Movable Quarter&nbsp;&amp; Vent Modules</FONT></TD>
</TR>
</TABLE>
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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Processes
used in the manufacture of our mirrors and engineered glass products include injection moulding, painting and assembly. </FONT></P>

<P><FONT SIZE=2><B>Electronic Systems  </B></FONT></P>

<P><FONT SIZE=2><I>Magna Electronics  </I></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We currently offer our customers a number of electronic systems through one division in North America (United&nbsp;States) and one division in Europe (Germany). </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Examples
of the types of electronic systems and products we offer include: </FONT></P>

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<TR VALIGN="BOTTOM">
<TH WIDTH="32%" ALIGN="LEFT"><FONT SIZE=1><B><I>Power Systems<BR> </I></B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="32%" ALIGN="LEFT"><FONT SIZE=1><B><I>Driver Assistance&nbsp;&amp; Safety<BR> </I></B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="32%" ALIGN="LEFT"><FONT SIZE=1><B><I>Body Electronics<BR> </I></B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2>Deployable Running Board Controls<BR>
Transfer Case Control Modules<BR>
Hybrid Vehicle Power Controls<BR>
HVAC Motor Controls<BR>
Power Liftgate Controls</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="32%"><FONT SIZE=2>Intelligent Headlamp Control/<BR>
&nbsp;&nbsp;&nbsp;&nbsp;Lane Departure Warning<BR>
ReversAid&#153;<BR>
ParkAssist&#153;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="32%"><FONT SIZE=2>Mirror Electronics<BR>
Zone Control Modules<BR>
Instrumentation and Sensors<BR>
Overhead Console Electronics<BR>
Electronic Gear Shift Indicators<BR>
Trailer Modules<BR>
Windshield Electronics Modules</FONT></TD>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=2>22</FONT></P>

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<P><FONT SIZE=2><B>Powertrain and Drivetrain Systems  </B></FONT></P>

<P><FONT SIZE=2><I>Magna Powertrain  </I></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We offer powertrain and drivetrain systems, modules and components through divisions located in North America (Canada, United&nbsp;States and Mexico), Europe
(Austria, Germany and Italy) and Rest of World (South Korea, China and Brazil). We are one of the leading suppliers of technologically advanced all-wheel and four-wheel drive
systems, including modules such as transfer cases, front axle drives, power take-off units and torque management devices, as well as manual transaxles and a wide variety of engine and
transmission products. We are also a leading supplier of front end accessory drive systems, including belt tensioning products. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Examples
of the types of powertrain and drivetrain products we offer include: </FONT></P>

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<TR VALIGN="BOTTOM">
<TH WIDTH="32%" ALIGN="LEFT"><FONT SIZE=1><B><I>Drivetrain Systems&nbsp;&amp; Components<BR> </I></B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="32%" ALIGN="LEFT"><FONT SIZE=1><B><I>Engine Systems&nbsp;&amp; Components<BR> </I></B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="32%" ALIGN="LEFT"><FONT SIZE=1><B><I>Axles&nbsp;&amp; Chassis Modules<BR> </I></B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2>AWD/4WD Systems<BR>
Transfer Cases<BR>
Front Axle Drives<BR>
Power Take-Off Units<BR>
Torque Management Devices<BR>
Manual Transaxles<BR>
Flexplates<BR>
Transmission Oil Pumps<BR>
Oil Pan Assemblies<BR>
Aluminum Castings and Machined<BR>
&nbsp;&nbsp;&nbsp;&nbsp;Components<BR>
Clutch Housings/Components<BR>
Clutch Modules<BR>
6&nbsp;Speed Modules<BR>
Drive Hubs and Housings<BR>
Shafts and Shaft Assemblies</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="32%"><FONT SIZE=2>Mass Balancing Systems<BR>
Front Cover Modules<BR>
Oil Pan Assemblies<BR>
Cam and Rocker Covers<BR>
Aluminum Castings and Machined<BR>
&nbsp;&nbsp;&nbsp;&nbsp;Components<BR>
Engine Oil Pumps<BR>
Water Pumps<BR>
Water Management Components<BR>
FEAD Systems/Tensioners<BR>
Pulleys and Idler Assemblies<BR>
Alternator Decouplers<BR>
Engine Dress</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="32%"><FONT SIZE=2>Independent Rear and Front Suspension Modules<BR>
Beam Axles</FONT></TD>
</TR>
</TABLE>
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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
powertrain and drivetrain divisions employ a variety of different manufacturing capabilities and processing technologies in their operations, including metal die-forming,
flow-forming, stamping and spinning, synchronous roll-forming, die-spline rolling, precision-heavy stamping, fineblanking, aluminum die casting and precision
machining, magnesium machining, plastic injection moulding and plastic welding, soft and hard processing of gear wheels and shafts, rotary swaging, hardening, laser welding, automated assembly and end
of line testing. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
conduct some of our powertrain operations through joint ventures, including: </FONT></P>

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<TD WIDTH="94%"><FONT SIZE=2>our 76.8% partnership interest in the Litens Automotive Partnership, a joint venture with members of its senior management, which is a leading supplier of highly-engineered drive system products, including accessory and
timing belt drive tensioner products and systems, overrunning alternator decoupler assemblies, idler and crankshaft pulley assemblies and tubular drive shaft assemblies, with divisions in North America (Canada), Europe (Germany) and Rest of World
(China and Brazil);</FONT></TD>
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<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
our 50% equity interest in STT Technologies&nbsp;Inc., a joint venture with SHW Automotive&nbsp;GmbH, which supplies oil pumps for North American engine and transmission applications, from a division in North America (Canada); and</FONT></TD>
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<TD WIDTH="94%"><FONT SIZE=2>our 80% equity interest in New&nbsp;Process Gear,&nbsp;Inc., a joint venture with DaimlerChrysler Corporation created in connection with our acquisition of the New&nbsp;Venture Gear business from DaimlerChrysler in 2004
(See&nbsp;"ITEM 2. GENERAL DEVELOPMENT OF THE BUSINESS&nbsp;&#151;&nbsp;RECENT DEVELOPMENTS IN OUR BUSINESS&nbsp;&#151;&nbsp;Material Acquisitions and Divestitures"), which supplies single and double-speed transfer cases (for&nbsp;active, part-time
and manual 4WD systems), manual transaxles, compounders, adaptors and a variety of machined shafts, gears and housings, from a division in North America (United&nbsp;States). We will acquire DaimlerChrysler's interest in New&nbsp;Process Gear in
September&nbsp;2007.</FONT></TD>
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<P><FONT SIZE=2><B>Roof Systems  </B></FONT></P>

<P><FONT SIZE=2><I>Magna Car Top Systems  </I></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We offer various automotive roof systems through divisions located in North America (United&nbsp;States) and Europe (Germany and Belgium). </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Examples
of the type of roof systems products we offer include: </FONT></P>

<UL>

<P><FONT SIZE=2>Soft
Tops<BR>
Hard Tops<BR>
Retractable Hard Tops<BR>
Roof Modules<BR>
Alternative Roof Solutions </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Processes
employed in our roof systems operations include textile cut and sew, as well as assembly. </FONT></P>

<P><FONT SIZE=2><B>Complete Vehicle Engineering and Assembly  </B></FONT></P>


<P><FONT SIZE=2><I>Magna Steyr  </I></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We offer complete vehicle assembly through a division located in Europe (Austria) and complete vehicle engineering through divisions located in North America
(United&nbsp;States), Europe (Austria, Germany, France and Hungary) and Rest of World (India). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
are the automotive industry's leading independent assembler of low-volume, derivative, specialty and other vehicles for automobile manufacturers. Our capabilities in this
product area enable us to participate in the vehicle and systems concept and design process through: involvement in advance development and the preparation of feasibility studies; the development
phase, in which technical calculations and simulations are performed and full vehicle prototypes are built; and the vehicle testing and production planning stage. In connection with our assembly
operations, we perform procurement, logistics, painting and quality management, as well as the actual vehicle assembly. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="dc1343_research_and_development"> </A>
<A NAME="toc_dc1343_2"> </A>
<BR></FONT><FONT SIZE=2><B>RESEARCH AND DEVELOPMENT    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have historically emphasized technology development and have a policy, embodied in our Corporate Constitution, to allocate a minimum of 7% of our
pre-tax profits (as&nbsp;defined in the Corporate Constitution) for each financial year to research and development during that financial year or the next succeeding financial year. See
"ITEM 9. CORPORATE CONSTITUTION&nbsp;&#151;&nbsp;Research and Development" below. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
past development activities have resulted in a number of new and improved manufacturing processes and proprietary products, including those discussed above under "ITEM 2. GENERAL
DEVELOPMENT OF THE BUSINESS&nbsp;&#151;&nbsp;RECENT DEVELOPMENTS IN OUR BUSINESS&nbsp;&#151;&nbsp;New&nbsp;Products and Technologies" above. We expect
that our involvement in the development of manufacturing technology and product technology in cooperation with automobile manufacturers will increase as automobile manufacturers further involve
suppliers in the vehicle development process. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>24</FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="de1343_manufacturing_and_engineering"> </A>
<A NAME="toc_de1343_1"> </A>
<BR></FONT><FONT SIZE=2><B>MANUFACTURING AND ENGINEERING    <BR>    </B></FONT></P>

<P><FONT SIZE=2><B>Facilities  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As at December&nbsp;31, 2005, we had 224&nbsp;manufacturing facilities, including 12&nbsp;joint venture facilities, of which 126&nbsp;are in North
America, 86&nbsp;are in Europe, and 12&nbsp;are in Rest of World (Asia and South America). These manufacturing facilities occupied approximately 41.4&nbsp;million square&nbsp;feet, of which
approximately 56% was leased from MI Developments, 17% was owned by us and the remaining 27% was leased from third parties. As at December&nbsp;31, 2005, our manufacturing facilities ranged in size
from approximately 8,700 to over three million square&nbsp;feet of floor space. Most of our manufacturing facilities maintain an in-house tooling capability with a staff of experienced
tool and die makers. As production becomes more automated, the size and potential production capacity of our typical facility increases. We are operating many of our manufacturing facilities on a
multi-shift basis. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
at December&nbsp;31, 2005, we also operated 60&nbsp;product development and engineering facilities, including three joint venture facilities, of which 27&nbsp;are in North
America, 26&nbsp;are in Europe and seven are in Rest of World (Asia). Such facilities occupy approximately 3.0&nbsp;million square&nbsp;feet, of which approximately 55% was leased from MI
Developments, 29% was leased from third parties and the remaining 16% was owned by us. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Leases
typically have terms of five years or more with options to renew. </FONT></P>


<P><FONT SIZE=2><B>Key Commodities  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We purchase our key commodities to the extent possible from domestic suppliers in the jurisdictions in which we do business. Factors such as price, quality,
transportation costs, warehousing costs, availability of supply and timeliness of delivery have an impact on the decision to source from certain suppliers. In the past, we have purchased key
commodities offshore when shortages of materials, such as certain high quality grades of steel, have occurred. Over the last year, we have experienced significant price increases for key commodities
used in our parts production, particularly steel and resin,
and expect such prices to remain at elevated levels in 2006 compared to earlier this decade. Approximately half of our steel is acquired through resale programs operated by automobile manufacturers,
which do not expose us to steel price increases, and the balance is acquired through spot, short-term and long-term contracts. However, a steel supplier has challenged its
agreements with us and, to the extent that it successfully continues to dispute, terminate or otherwise refuse to honour its contracts, our exposure to steel price increases may increase to the extent
that steel prices remain at elevated levels. To date, we have not experienced any significant difficulty in obtaining supplies of parts, components or key commodities for our manufacturing operations,
including steel and steel products. We do not carry inventories of either key commodities or finished products in excess of those reasonably required to meet production and shipping schedules. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="de1343_human_resources"> </A>
<A NAME="toc_de1343_2"> </A>
<BR></FONT><FONT SIZE=2><B>HUMAN RESOURCES    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As at December&nbsp;31, 2005, we employed over 82,000&nbsp;people, including approximately 22,200&nbsp;in Canada, 28,650&nbsp;in Europe, 18,050&nbsp;in
the United&nbsp;States, 10,800&nbsp;in Mexico, 2,500&nbsp;in Asia and 600&nbsp;in South America. </FONT></P>

<P><FONT SIZE=2><B>Human Resource Principles  </B></FONT></P>


<P><FONT SIZE=2><B><I>Employee Equity Participation and Profit Sharing Program  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Since 1975, we have maintained an employee equity and profit participation program to foster participation in profits and share ownership by our eligible
employees. Our Corporate Constitution requires that 10% of our employee pre-tax profits before profit sharing (as&nbsp;defined in our Corporate Constitution) for a fiscal period be
allocated to (i)&nbsp;the employee equity participation and profit sharing plan, (ii)&nbsp;contributions to a company pension plan, or (iii)&nbsp;a cash distribution to eligible employees. See
"ITEM 9. CORPORATE CONSTITUTION&nbsp;&#151;&nbsp;Employee Equity Participation and Profit Sharing Programs" below. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>25</FONT></P>

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<P><FONT SIZE=2><B><I>Management Incentive Compensation  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We believe that profit participation motivates members of management. Accordingly, our management compensation structure consists of a base salary, which is
generally below base salaries for comparable positions within an appropriate comparator group of North American companies which have global businesses and are not generally increased on an annual
basis, as well as an incentive bonus based on profits. Our Corporate Constitution provides that aggregate profit participation (incentive bonuses) paid and payable to Corporate Management
(as&nbsp;defined in the Corporate Constitution) in respect of any financial year must not exceed 6% of our Pre-tax Profits Before Profit Sharing (as&nbsp;defined in the Corporate
Constitution) for that financial year. See "ITEM 9. CORPORATE CONSTITUTION&nbsp;&#151;&nbsp;Incentive Bonuses; Management Base Salaries" below. </FONT></P>

<P><FONT SIZE=2><B><I>Employee's Charter  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are committed to an operating philosophy based on fairness and concern for people. This philosophy is part of our "Fair Enterprise" culture in which employees
and management share in the responsibility to help ensure our success. Our Employee's Charter embodies this philosophy through the following principles: </FONT></P>

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<TD WIDTH="94%"><FONT SIZE=2><I>Job Security&nbsp;&#151;&nbsp;</I></FONT><FONT SIZE=2>Being competitive by making a better product for a better price is the best way to enhance job security. We are committed to working together with our employees to
help protect their job security. To assist in this regard, we will provide job counselling, training and employee assistance programs to our employees.</FONT></TD>
</TR>
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<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><BR><FONT SIZE=2><I>A Safe and Healthful Workplace&nbsp;&#151;&nbsp;</I></FONT><FONT SIZE=2>We strive to provide our employees with a working environment which is safe and healthful.</FONT></TD>
</TR>
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<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><BR><FONT SIZE=2><I>Fair Treatment&nbsp;&#151;&nbsp;</I></FONT><FONT SIZE=2>We offer equal opportunities based on an individual's qualifications and performance, free from discrimination or favouritism.</FONT></TD>
</TR>
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<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><BR><FONT SIZE=2><I>Competitive Wages and Benefits&nbsp;&#151;&nbsp;</I></FONT><FONT SIZE=2>We will provide our employees with information which will enable them to compare their total compensation, including total wages and total
benefits, with those earned by employees of our competitors, as well as with other plants in the communities in which our plants are located. Should total compensation be below average, wages will be adjusted.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><BR><FONT SIZE=2><I>Employee Equity and Profit Participation&nbsp;&#151;&nbsp;</I></FONT><FONT SIZE=2>We believe that every one of our employees should share in our financial success.</FONT></TD>
</TR>
<TR VALIGN="TOP">
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<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><BR><FONT SIZE=2><I>Communication and Information&nbsp;&#151;&nbsp;</I></FONT><FONT SIZE=2>Through regular monthly meetings between management and employees and through publications, we will provide our employees with information so
that they will know what is going on in the company and in the industry.</FONT></TD>
</TR>
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<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><BR><FONT SIZE=2><I>Employee Hotline&nbsp;&#151;&nbsp;</I></FONT><FONT SIZE=2>Should any of our employees have a problem, or feel the foregoing principles are not being met, we encourage them to call the Hotline or use self-addressed
Hotline envelopes to register their complaints. Employees do not have to give their names, but if they do, it will be held in strict confidence. Hotline investigators who are independent from divisional management will answer an employee's call. The
Hotline is committed to investigating and resolving all concerns or complaints and must report the outcome to our global human resources department and, in certain cases, to our Audit Committee.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><BR><FONT SIZE=2><I>Employee Relations Advisory Board&nbsp;&#151;&nbsp;</I></FONT><FONT SIZE=2>The Employee Relations Advisory Board is a group of people who have proven recognition and credibility relating to humanitarian and social
issues. This Board monitors, advises and ensures that we operate within the spirit of our Employee's Charter and the principles of our Corporate Constitution.</FONT></TD>
</TR>
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<P><FONT SIZE=2><B>Human Resource Policies  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In furtherance of our commitment to fairness, as demonstrated in our Employee's Charter, we have established Fairness Committees in most of our North American and
in many European manufacturing facilities which enable employees at such facilities to have many of their concerns resolved by a committee comprised of both management and employees. Most of our North
American manufacturing facilities also have an Employee Advocate who works with our employees and management to ensure that any concerns that arise in the workplace are addressed quickly and in
accordance with our Employee's Charter, Corporate Constitution and operating principles. Employee Advocates can only be removed if more than 55% of the shop floor employees at the applicable division
vote to remove him or her through a periodic secret ballot. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
have established many employee communication programs, such as monthly divisional employee meetings, continuous improvement team meetings, an employee hotline and employee opinion
surveys to help ensure employee involvement and feedback. In addition, we maintain a 100&nbsp;acre recreational park within 20&nbsp;miles of most of our Toronto-area facilities for use
by our employees and their families. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition to the employee equity participation and profit sharing programs discussed above under "Human Resource Principles", we maintain a group registered retirement savings plan in
Canada and a 401(k) plan in the United&nbsp;States whereby we partially match employees' contributions made through payroll deductions. These plans complement the employee equity participation and
profit sharing programs and the pension plans, and are designed to assist employees in providing replacement income for retirement. The pension plans that commenced in January&nbsp;2001 for Canadian
and U.S.&nbsp;employees were closed to new participants as of January&nbsp;1, 2005. </FONT></P>


<P><FONT SIZE=2><B>Labour Relations  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We believe that we maintain positive relations with our employees and, where applicable, with the unions representing the employees at certain of our automotive
divisions. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employees
of our Mississauga Seating division in Mississauga, Ontario, as well as employees of our Integram Windsor and Innovatech seating divisions in Windsor, Ontario, are covered by
collective agreements with the National Automobile, Aerospace, Transportation and General Workers Union of Canada (CAW). Employees of our Integram St. Louis, Excelsior Springs, Lewisburg, Lordstown
and Techcraft seating divisions and our Ontegra Brighton and Shreveport interiors divisions are represented in the United&nbsp;States by the International Union, United Automobile Aerospace and
Agricultural Workers of America (UAW). Employees of our New&nbsp;Process Gear facility in Syracuse, New&nbsp;York are also represented by the UAW. The forms of collective agreements negotiated
with the CAW and the UAW recognize our unique operating philosophy, including our Employee's Charter and fundamental Fair Enterprise principles. Most of these agreements recognize the need for wages
and benefits to be competitive with our competitors, rather than those paid by our customers' vehicle assembly operations. One of the key features of these agreements is the "no
strike&nbsp;&#151;&nbsp;no lock-out" language during the life of such agreements. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employees
at a number of our divisions in Mexico are currently covered by collective bargaining agreements with various unions. These divisions are Autotek (Puebla), Sonora Forming
Technologies (Hermosillo), Decoplas (Mexico City), Litetek (Matamoros), Magna Donnelly (Monterrey), as well as Formex, Estampados Magna, Magna Interior Systems de Mexico and Magna Powertrain de Mexico
(all&nbsp;in Saltillo). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Various
unions represent employees at certain of Intier's interior systems and seating divisions, as well as certain of Decoma's divisions, in the United&nbsp;Kingdom. Certain of our
European employees are covered by national
industry-wide agreements relating to compensation and employment conditions and are members of in-house employees' associations or trade unions. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>27</FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From
time to time, various unions seek to represent groups of our employees and, as a result, we may become party to additional collective agreements in the future. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="de1343_competition"> </A>
<A NAME="toc_de1343_3"> </A>
<BR></FONT><FONT SIZE=2><B>COMPETITION    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We face numerous sources of competition in the markets in which we operate, including from automobile manufacturers, other outside automotive suppliers and
numerous other suppliers in which one or more automobile manufacturers may have direct or indirect investments. We believe that there are a number of suppliers that can produce some of the components,
assemblies, modules and systems that we currently produce. Some of our competitors have greater technical or marketing resources than we do and some of them are dominant in markets in which we
operate, however, we are the only supplier with product capabilities spanning most major areas of a vehicle. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
basis on which automobile manufacturers select automotive suppliers is determined by a number of factors, including price, quality, service, historical performance, timeliness of
delivery, proprietary technologies, scope of in-house capabilities, existing agreements, responsiveness to the customer, the supplier's overall relationship with the automobile
manufacturer, the degree of available and unutilized capacity or resources in the manufacturing facilities of the automobile manufacturer, collective bargaining agreement provisions, labour relations
issues, financial strength and other factors. The number of competitors that are solicited by automobile manufacturers to bid on any individual product has been reduced in many cases and we expect
further reductions as automobile manufacturers follow through on their stated intentions of dealing with fewer suppliers and rewarding those suppliers with earlier and deeper involvement. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="de1343_sales_and_marketing"> </A>
<A NAME="toc_de1343_4"> </A>
<BR></FONT><FONT SIZE=2><B>SALES AND MARKETING    <BR>    </B></FONT></P>


<P><FONT SIZE=2><B>Sales Offices  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We sell our products directly to automobile manufacturers located in North America through sales offices located in Canada and the United&nbsp;States.
Additionally, we sell directly to automobile manufacturers located in Europe through sales offices located primarily in Austria, Germany, the United&nbsp;Kingdom, France, Italy and Spain. Our sales
to automobile manufacturers in Rest of World are made with the assistance of representative offices in Japan, China, South Korea, Brazil, India and Thailand. The various internal operating divisions
and subsidiaries of the automobile manufacturers normally initiate many of their own purchasing decisions. As a result, an automobile manufacturer may effectively constitute multiple customers,
although this is changing as automobile manufacturers are increasingly seeking to source global platforms. </FONT></P>

<P><FONT SIZE=2><B>Purchase Orders  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our sales are generated through customer requests to quote on particular products, including parts, components and assemblies, and the tools and dies to produce
parts. Purchase orders for our products are typically for one or more models, and typically extend over the life of each model, which is generally four to seven years. However, purchase orders issued
by our automobile manufacturer customers typically do not require them to purchase any minimum number of our products. Releases under such purchase orders, which authorize us to supply specific
quantities of products, are issued for planning, raw material and production purposes typically over a one to four month period in advance of anticipated delivery dates. The actual number of products
that we supply under purchase orders in any given year is dependent upon the number of vehicles produced by the automobile manufacturers of the specific models in which those products are
incorporated. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>28</FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It
has been our experience that once we receive purchase orders for products for a particular vehicle model or program, we will usually continue to supply those products until the end of
that model or program. However, automobile manufacturers could cease sourcing their production requirements from us for a number of reasons, including if we refuse to accept demands for price
reductions or other concessions. We have also obtained new business from our customers and on a "takeover" basis from our competitors. This occurs where parts for certain programs are already in
production at the automobile manufacturers' facilities or at our competitors' facilities and, for various reasons, those parts are "re-sourced" to us for production at our facilities. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="de1343_environmental_matters"> </A>
<A NAME="toc_de1343_5"> </A>
<BR></FONT><FONT SIZE=2><B>ENVIRONMENTAL MATTERS    <BR>    </B></FONT></P>

<P><FONT SIZE=2><B>Health, Safety and Environmental Policy  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are subject to a wide range of environmental laws and regulations relating to air emissions, soil and ground water quality, wastewater discharge, waste
management and storage of hazardous substances. We aim to be an industry leader in environmental compliance with the intention to prevent pollution by reducing the impact of our operations on the
environment and through technological innovation and process efficiencies. In furtherance of this aim, our Health, Safety and Environmental Policy commits us to: </FONT></P>

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<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="94%" ALIGN="CENTER"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
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<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2>complying with, and exceeding where possible, all applicable health, safety and environmental laws, regulations and standards in all of our operations and conforming to our internal standards based on generally accepted
environmental practices and established industry codes of practice;</FONT></TD>
</TR>
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<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
regularly evaluating and monitoring past and present business activities impacting upon health, safety and environmental matters;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
improving upon the efficient use of natural resources, including energy, to minimizing waste streams and emissions, and to implementing effective recycling in manufacturing operations through the use of locally set continuous improvement
targets;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
utilizing innovative design and engineering to reduce the environmental impact of our products during vehicle operation and at end of life;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
ensuring that a systematic review program is implemented and monitored at all times for each of our operations, with the goal of continual improvement in health, safety and environmental matters; and</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
ensuring that adequate reports on health, safety and environmental matters are presented to our Board of Directors on an annual basis, at a minimum.</FONT></TD>
</TR>
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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
Health and Safety and Environmental Committee of our Board of Directors assists in overseeing our management's handling of health, safety and environmental issues and annually reviews
our Health, Safety and Environmental Policy. </FONT></P>

<P><FONT SIZE=2><B>Environmental Compliance  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As part of our commitment to environmental compliance, we also intend to achieve company-wide compliance with ISO&nbsp;14001 standards. As of
December&nbsp;31, 2005, 164 of our manufacturing facilities were ISO&nbsp;14001 certified. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
operate a number of manufacturing facilities that use environmentally sensitive processes and hazardous materials. We believe that all of these operations meet, in all material
respects, applicable governmental standards for waste handling and emissions. Notwithstanding this compliance, we have in the past and may in the future experience complaints regarding some of our
manufacturing facilities from neighbouring parties. In the past, such complaints have been addressed by open dialogue with relevant stakeholders and, where appropriate, manufacturing process
adjustments. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>29</FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
are also subject to environmental laws requiring investigation and clean-up of environmental contamination. From time to time, our operations and properties become the
subject of inquiries or investigations of environmental regulators. We are in various stages of investigation or clean-up at our manufacturing facilities where contamination has been
alleged. These stages include performing periodic soil and groundwater sampling, determining the most appropriate corrective action approach for remediating the contamination and obtaining regulatory
approval of such approach, performing the remediation and monitoring the status of our remediation. Estimating environmental clean-up liabilities is complex and heavily dependent on the
nature and extent of historical information and physical data about the contaminated site, the complexity of the contamination, the uncertainty of which remedy to apply and the outcome of discussions
with regulatory authorities relating to the contamination. To date, the costs incurred in complying with environmental laws and regulations, including the costs of clean-up and
remediation, have not had a material adverse effect on us, however, changes in these government laws and regulations are ongoing and may make environmental compliance, such as emissions control and
waste disposal, increasingly expensive. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
are subject to environmental laws and regulations both as tenant and owner of our properties. The majority of our automotive real estate is leased from MI Developments. Our leases
with MI Developments generally provide that we, as tenant, must maintain the leased properties in accordance with all applicable laws, including environmental laws. We are also responsible for
removing all hazardous and toxic substances when and as required by applicable laws and, in any event, prior to the termination of our occupation of the leased properties. This applies whether or not
the contamination occurred prior to our use of the leased properties, unless it was not caused or exacerbated by our use. Our leases generally also contain indemnities in favour of MI Developments
with respect to environmental matters, and those indemnities expire after a specified period of time following the termination of the leases. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="de1343_intellectual_property"> </A>
<A NAME="toc_de1343_6"> </A>
<BR></FONT><FONT SIZE=2><B>INTELLECTUAL PROPERTY    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We own and use numerous patents and patent applications in connection with our operations. We are also licensed to use patents or technology owned by others. From
time to time, claims of patent infringement are made by or against us. None of the claims against us has had, and we believe that none of the current claims will have, a material adverse effect upon
us. While in the aggregate our patents and licenses are considered important in the operation of our business, we do not consider them of such importance that their expiry would materially affect our
business. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="de1343_risk_factors"> </A>
<A NAME="toc_de1343_7"> </A>
<BR></FONT><FONT SIZE=2><B>RISK FACTORS    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The industry in which we compete and the business we conduct are subject to a number of risks and uncertainties. These risks and uncertainties, together with
certain assumptions, also underlie the forward-looking statements made in this Annual Information Form. In order to fully understand these risks, uncertainties and assumptions, you should carefully
consider the following risk factors in addition to other information included in this Annual Information Form. </FONT></P>


<P><FONT SIZE=2><B>Risks Relating to Our Industry and Operations  </B></FONT></P>

<P><FONT SIZE=2><B><I>Declining production volumes caused by industry cyclicality and changes in consumer demand for vehicles could have a material adverse effect on our
profitability.  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The global automotive industry is cyclical and consumer demand for automobiles is sensitive to changes in certain economic and political conditions, including
interest rates and international conflicts (including acts of terrorism). Automotive sales and production can also be affected by other factors, including labour relations issues, regulatory
requirements and trade agreements. In North America, the industry is characterized by significant overcapacity, fierce competition and significant pension and other post-employment benefit
costs for the domestic automobile manufacturers. In Europe, the market structure is relatively fragmented with significant overcapacity. As a result of these conditions, some of our customers are
currently experiencing or may in the future experience reduced consumer demand for their vehicles, leading to declining vehicle production volumes. A reduction in vehicle production volumes by any of
our significant customers could have a material adverse effect on our profitability. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>30</FONT></P>

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<P><FONT SIZE=2><B><I>If any of our customers are unable to satisfy their financial obligations or seek protection from their creditors, we may incur significant costs, which
could have a material adverse effect on our profitability and financial condition.  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rising healthcare, pension and other post-employment benefit costs are having a significant adverse effect on the profitability and competitiveness of
a number of North American and European automobile manufacturers and automotive component suppliers. Increased raw material prices, including steel and resins, are also adversely affecting automobile
manufacturers and automotive component suppliers. Other economic conditions, such as increased gas prices, have affected and could further threaten sales of certain models, such as
full-size sport utility vehicles. All of these conditions, coupled with a continued decline in market share, could further threaten the financial condition of some of our customers,
putting additional pressure on us to reduce our prices and exposing us to greater credit risk. In the event that our customers are unable to satisfy their financial obligations or seek protection from
their creditors, as in the case of MG Rover, we may incur additional expenses as a result of such credit exposure, which could have a material adverse effect on our profitability and financial
condition. </FONT></P>

<P><FONT SIZE=2><B><I>A reduction in production volumes of specific vehicles by our customers could have an adverse effect on our sales and profitability.  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although we supply parts to all of the leading automobile manufacturers, a significant majority of our sales are to four such customers, two of which are rated as
below investment grade by credit rating agencies. We are attempting to further diversify our customer base, particularly to increase our business with Asian based automobile manufacturers. A decline
in overall production volumes by any of our four largest customers could have an adverse effect on our profitability, particularly if we are unable to further diversify our customer base. Moreover,
while we supply parts for a wide variety of vehicles produced in North America and Europe, we do not supply parts for all vehicles produced, nor is the number or value of parts evenly distributed
among the vehicles for which we do supply parts. Shifts in market share among vehicles (including shifts away from vehicles we assemble) or the early termination, loss, renegotiation of the terms of,
or delay in, the implementation of any significant production or assembly contract could have an adverse effect on our profitability. </FONT></P>

<P><FONT SIZE=2><B><I>We may not be able to successfully compete against suppliers with operations in low cost countries.  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The competitive environment in the automotive industry has been intensifying as our customers seek to take advantage of lower operating costs in China, other
countries in Asia and parts of Eastern Europe. As a result, we are facing increased competition from suppliers that have manufacturing operations in low cost countries. While we continue to expand our
manufacturing footprint with a view to taking advantage of manufacturing opportunities in low cost countries, we cannot guarantee that we will be able to fully realize such opportunities.
Additionally, the establishment of manufacturing operations in emerging market countries carries its own risks, including those relating to political and economic instability; trade, customs and tax
risks; currency exchange rates; currency controls; insufficient infrastructure; and other risks associated with conducting business internationally. </FONT></P>


<P><FONT SIZE=2><B><I>Our inability to offset the effect of increased steel, resin and other commodities prices could have a material adverse effect on our profitability.  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Over the last year we have experienced significant price increases for key commodities used in our parts production, particularly steel and resin. We expect steel
prices will remain at elevated levels in 2006 compared to levels earlier this decade. Approximately half of our steel is acquired through resale programs operated by the automobile manufacturers,
which do not expose us to steel price increases, and the balance is acquired through spot, short-term and long-term contracts. However, a steel supplier has challenged its
long-term agreements with us for certain steel products while steel prices were rising and, to the extent that it successfully continues to dispute, terminate or otherwise refuse to honour
its contracts, our exposure to steel price increases will increase to the extent that steel prices remain at elevated levels. We also sell scrap steel, which is generated through our parts production
process, and the revenues from these sales have reduced some of our exposure to steel price increases in the past. However, if scrap steel prices decline, while steel prices remain high, our ability
to reduce our exposure to steel price increases will diminish. To the extent we are unable to fully mitigate our exposure to increased commodity prices through hedging strategies, by engineering
products with reduced steel, resin or other commodity content, or by passing additional steel and resin costs to our customers, such additional commodity costs could have a material adverse effect on
our profitability. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>31</FONT></P>

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<P><FONT SIZE=2><B><I>The consequences arising out of the financial distress of suppliers to us and our customers could have an adverse effect on our profitability.  </I></B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We rely on a number of suppliers to supply us with a wide range of components required in connection with our business. Economic conditions, intense pricing
pressures, increased commodity prices and a number of other factors have left many automotive suppliers in varying degrees of financial distress. The continued financial distress or the insolvency or
bankruptcy of one of our major suppliers could disrupt the supply of components to us from these suppliers, possibly resulting in a temporary disruption in the supply of products by us to our
customers. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additionally,
the financial distress or the insolvency or bankruptcy of a significant supplier to one of our customers could disrupt the supply of products to such customer, resulting in
a reduction in production by our customer. Such a reduction in our customer's production could negatively impact our production, resulting in unrecoverable losses. Any prolonged disruption in the
supply of critical components by our suppliers or suppliers to one of our customers, the inability to re-source production of a critical component from a financially distressed automotive
components sub-supplier, or any temporary shut-down of one of our production lines or the production lines of our customers, could have a material adverse effect on our
profitability. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additionally,
the insolvency, bankruptcy or financial restructuring of any of our critical suppliers could result in us incurring unrecoverable costs related to the financial
work-out of such suppliers and/or increased exposure for product liability, warranty or recall costs relating to the components supplied by such suppliers to the extent such suppliers are
not able to assume responsibility for such amounts, which could have an adverse effect on our profitability. </FONT></P>

<P><FONT SIZE=2><B><I>Our inability to offset price concessions demanded by our customers could have a material adverse effect on our profitability.  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have entered into, and will continue to enter into, long-term supply arrangements with our customers which provide for, among other things, price
concessions over the supply term. To date, these concessions have been fully or partially offset by cost reductions arising principally from product and process improvements and price reductions from
our suppliers. However, the competitive automotive industry environment in North America, Europe and Asia has caused these pricing pressures to intensify. Some of our customers have demanded, and in
light of challenging automotive industry conditions may continue to demand, additional price concessions and/or retroactive price reductions. We may not be successful in offsetting all of these price
concessions through improved operating efficiencies, reduced expenditures or reduced prices from our suppliers. To the extent that we are not able to offset price concessions through cost reductions
or improved operating efficiencies, such concessions could have a material adverse effect on our profitability. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>32</FONT></P>

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<P><FONT SIZE=2><A
NAME="page_dg1343_1_33"> </A> </FONT> <FONT SIZE=2><B><I>Our inability to fully recover certain pre-production expenses could adversely affect our profitability.  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We continue to be pressured to absorb costs related to product design, engineering and tooling, as well as other items previously paid for directly by automobile
manufacturers. In particular, some automobile manufacturers have requested that we pay for design, engineering and tooling costs that are incurred up to the start of production and recover these costs
through amortization in the piece price of the applicable component. Some of these costs cannot be capitalized, which could adversely affect our profitability until the programs in respect of which
they have been incurred are launched. In addition, since our contracts generally do not include any guaranteed minimum purchase requirements, if estimated production volumes are not achieved, these
costs may not be fully recovered, which could have an adverse effect on our profitability. </FONT></P>

<P><FONT SIZE=2><B><I>Warranty and recall costs could have a material adverse effect on our profitability and financial condition.  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our customers continue to demand that we bear the cost of the repair and replacement of defective products which are either covered under their warranty or are
the subject of a recall by them. If our products are, or are alleged to be, defective, we may be required to participate in a recall of those products, particularly if the actual or alleged defect
relates to vehicle safety. Warranty provisions are established based on our best estimate of the amounts necessary to settle existing or probable claims on product default issues. Recall costs are
costs incurred when government regulators and/or our customers decide to recall a product due to a known or suspected performance issue, and we are required to participate either voluntarily or
involuntarily. Costs typically include the cost of the product being replaced, the customer's cost of the recall and labour to remove and replace the defective part. We continue to experience
increased customer pressure to assume greater warranty responsibility. Currently, under most customer agreements, we only account for existing or probable claims. Under certain complete vehicle
engineering and assembly contracts, we record an estimate of future warranty-related costs based on the terms of the specific customer agreements, and the specific customer's warranty experience. The
obligation to repair or replace such products could have a material adverse effect on our profitability and financial condition if the actual costs are materially different from such estimates. </FONT></P>

<P><FONT SIZE=2><B><I>Our profitability could be adversely affected if any of our customers terminate their contracts with us.  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts from our customers consist of blanket purchase orders which generally provide for the supply of a customer's annual requirements for a particular
vehicle, instead of a specified quantity of products. These blanket purchase orders can be terminated by a customer at any time and, if terminated, could result in us incurring various
pre-production, engineering and other costs which we may not recover from our customer and which could have an adverse effect on our profitability. </FONT></P>

<P><FONT SIZE=2><B><I>Our profitability and financial condition could be adversely affected by product liability claims which exceed our insurance coverage.  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are also subject to the risk of exposure to product liability claims in the event that the failure of our products results in bodily injury and/or property
damage. Currently, we have bodily injury coverage under insurance policies. This coverage will continue until September&nbsp;2006 and is subject to renewal on an annual basis. A successful claim
against us in excess of our available insurance coverage could have an adverse effect on our profitability and financial condition. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>33</FONT></P>

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<P><FONT SIZE=2><B><I>Significant long-term fluctuations in relative currency values could have an adverse effect on our profitability and financial condition.  </I></B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although our financial results are reported in U.S.&nbsp;dollars, a significant portion of our sales and operating costs are realized in Canadian dollars,
euros, British pounds and other currencies. Our profitability is affected by movements of the U.S.&nbsp;dollar against the Canadian dollar, the euro, the British pound and other currencies in which
we generate revenues and incur expenses. However, as a result of hedging programs employed by us, primarily in Canada, foreign currency transactions are not fully impacted by the recent movements in
exchange rates. We record foreign currency transactions at the hedged rate where applicable. Despite these measures, significant long-term fluctuations in relative currency values, in
particular a significant change in the relative values of the U.S.&nbsp;dollar, Canadian dollar, euro or the British pound, could have an adverse effect on our profitability and financial condition. </FONT></P>

<P><FONT SIZE=2><B><I>Our short-term profitability could be adversely affected by expenses associated with a rationalization of some of our operations.  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We incurred significant restructuring and rationalization charges in 2005 and expect to incur additional restructuring and rationalization charges during 2006 in
the range of $30&nbsp;million to $40&nbsp;million related to activities that were initiated in 2005. In response to the increasingly competitive automotive industry conditions, we may further
rationalize some of our production facilities. In the course of such rationalization, we will incur further costs related to plant closings, relocations and employee severance costs. Such costs could
have an adverse effect on our short-term profitability. In addition, we are working to turn around financially under performing divisions, however, there is no guarantee that we will be
successful in doing so with respect to some or all such divisions. </FONT></P>

<P><FONT SIZE=2><B><I>We recorded significant impairment charges in 2005 and could record additional impairment charges in the future which could have a material adverse
effect on our profitability.  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We recorded significant impairment charges in 2005 and may do so in the future. Goodwill must be tested for impairment annually, or more frequently when an event
occurs that more likely than not reduces the fair value of a reporting unit below its carrying value. We also evaluate fixed assets and other long-lived assets for impairment whenever
indicators of impairment exist. The bankruptcy of a significant customer or the early termination, loss, renegotiation of the terms of, or delay in the implementation of any significant production
contract could be indicators of impairment. In addition, to the extent that forward-looking assumptions regarding the impact of improvement plans on current operations, in-sourcing and
other new business opportunities, program price and cost assumptions on current and future business, the timing of new program launches and future forecasted production volumes are not met, any
resulting impairment loss could have a material adverse impact on our profitability. </FONT></P>

<P><FONT SIZE=2><B><I>Legal claims against us could have a material adverse effect on our financial position.  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From time to time, we may be contingently liable for contractual and other claims with customers, suppliers and former employees. On an ongoing basis, we attempt
to assess the likelihood of any adverse judgements or outcomes to these claims, although it is difficult to predict final outcomes with any degree of certainty. At this time, we do not believe that
any of the claims which we are party to will have a material adverse effect on our financial position, however, we cannot provide any assurance to this effect. </FONT></P>

<P><FONT SIZE=2><B><I>We are exposed to a number of risks related to conducting business in foreign countries, some of which could have an adverse effect on our
profitability.  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have manufacturing, assembly, product development, engineering and research and development operations in many foreign countries, including countries in Asia,
Eastern Europe, Mexico and South America. International operations are subject to certain risks inherent in doing business abroad, including: </FONT></P>

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<UL>

<P><FONT SIZE=2>&#149;&nbsp;&nbsp;&nbsp;&nbsp;exposure
to local economic conditions;<BR>
&#149;&nbsp;&nbsp;&nbsp;&nbsp;expropriation and nationalization;<BR>
&#149;&nbsp;&nbsp;&nbsp;&nbsp;withholding and other taxes on remittances;<BR>
&#149;&nbsp;&nbsp;&nbsp;&nbsp;restrictions on repatriation of profits and/or currency controls;<BR>
&#149;&nbsp;&nbsp;&nbsp;&nbsp;investment restrictions;<BR>
&#149;&nbsp;&nbsp;&nbsp;&nbsp;export and import restrictions;<BR>
&#149;&nbsp;&nbsp;&nbsp;&nbsp;increases in working capital requirements related to long supply chains; and<BR>
&#149;&nbsp;&nbsp;&nbsp;&nbsp;difficulty in protecting intellectual property rights. </FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expanding
our business in emerging markets is an important element of our strategy and, as a result, our exposure to the risks described above may be greater in the future. The
likelihood of such occurrences and their potential effect on us vary from country to country and are unpredictable, however, any such occurrences could have an adverse effect on our profitability. </FONT></P>


<P><FONT SIZE=2><B><I>Unionization activities at some of our facilities could adversely affect our profitability.  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The CAW and UAW unions have conducted organizing drives at certain of our divisions. As a result, we have concluded collective agreements covering employees at
each of the facilities identified above under "HUMAN RESOURCES&nbsp;&#151;&nbsp;Labour Relations". In addition, the CAW and the UAW have in the past attempted to persuade some
of our automobile manufacturer customers to encourage their automotive suppliers to assume a neutral position with respect to unionization at their plants. We are unable to predict whether our
employees at any of our non-unionized divisions will elect union representation in the future. Increased unionization of our divisions may increase our costs, which could have an adverse
effect on our profitability. </FONT></P>

<P><FONT SIZE=2><B><I>Work stoppages and other labour relations disputes could have an adverse effect on our profitability.  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If our hourly workforce becomes more unionized, we may be subject to work stoppages and other labour disputes. To date, we have not experienced any material work
stoppages at our facilities, nor have we experienced any disputes with unions that have had a material effect on our operations. However, future disputes with labour unions may not be resolved without
significant work stoppages, which could have an adverse effect on our profitability. </FONT></P>

<P><FONT SIZE=2><B><I>Significant changes in laws and governmental regulations could have an adverse effect on our profitability.  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A significant change in the current regulatory environment in our principal markets could have an adverse effect on our profitability. In particular, our
profitability could be adversely affected by significant changes in the tariffs and duties imposed on our products, including significant changes to the North American Free Trade Agreement. </FONT></P>

<P><FONT SIZE=2><B><I>Environmental laws and regulations could have an adverse effect on our financial condition or profitability.  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are subject to a wide range of environmental laws and regulations relating to air emissions, wastewater discharge, waste management and storage of hazardous
substances. We are also subject to environmental laws requiring investigation and clean-up of environmental contamination and are in various stages of investigation and
clean-up at our manufacturing facilities where contamination has been alleged. Estimating environmental clean-up liabilities is complex and heavily dependent on the nature and
extent of historical information and physical data relating to the contaminated sites, the complexity of the contamination, the uncertainty of which remedy to apply and the outcome of discussions with
regulatory authorities relating to the contamination. In addition, these environmental laws and regulations are complex, change frequently and have tended to become more stringent and expensive over
time. Therefore, we may not have been, and in the future may not be, in complete compliance with all such laws and regulations, and we may incur material costs or liabilities as a result of such laws
and regulations significantly in excess of amounts we have reserved. To the extent that we incur liabilities or costs in excess of the amounts we have reserved in order to comply with environmental
laws and regulations, such liabilities or costs could have an adverse effect on our financial condition or profitability. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>35</FONT></P>

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<P><FONT SIZE=2><B>Risks Related to Our Controlling Shareholder  </B></FONT></P>

<P><FONT SIZE=2><B><I>We are controlled by the Stronach Trust.  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our business and affairs are controlled by the Stronach Trust, which beneficially owns approximately 66.4% of our outstanding Class&nbsp;B Shares. Those shares
represent approximately 0.7% of our total outstanding shares and approximately 55.5% of the aggregate voting power of our outstanding shares. In addition, Frank Stronach, who is our Chairman, controls
approximately 16.4% of the votes carried by our outstanding shares through his voting control of certain of our employee compensatory plans. Mr.&nbsp;Stronach is a trustee and a member of the class
of potential beneficiaries of the Stronach Trust. Accordingly, Mr.&nbsp;Stronach may be deemed to beneficially own the shares owned by the Stronach Trust, although he disclaims beneficial ownership. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject
to applicable law and the restrictions in our Corporate Constitution, the Stronach Trust is able to elect all of our directors and control us. In addition, the Stronach Trust
may, as a practical matter, be able to cause us to effect corporate transactions without the consent of our other shareholders. The Stronach Trust is also able to cause or prevent a change in our
control. Under present law, any offer to purchase our Class&nbsp;B Shares, whether by way of a public offer or private transaction and regardless of the offered price, would not necessarily result
in an offer to purchase our Class&nbsp;A Subordinate Voting Shares. Accordingly, holders of our Class&nbsp;A Subordinate Voting Shares do not have a right to participate if a takeover bid is made
for our Class&nbsp;B Shares. </FONT></P>

<P><FONT SIZE=2><B><I>Our controlling shareholder and Mr.&nbsp;Stronach have interests in MI Developments and Magna Entertainment that could conflict with our interests.  </I></B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Stronach Trust beneficially owns, in addition to our Class&nbsp;B Shares as described above, Class&nbsp;B Shares of MI Developments representing
approximately 56.5% of the aggregate voting power of MI Developments. MI Developments controls Magna Entertainment Corp. Mr.&nbsp;Stronach is the Chairman of both MI Developments and Magna
Entertainment and is currently also the Interim Chief Executive Officer of Magna Entertainment. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
significant portion of our leased facilities is owned by MI Developments. We pay rent and occupy these facilities pursuant to long-term leases. Most of these leases were
entered into while MI Developments was our wholly-owned subsidiary. Any material lease, construction or other arrangements with MI Developments are reviewed and approved by our Corporate Governance
and Compensation Committee in advance of any commitments by us or any of our subsidiaries. Although we believe that the existing leases are on arm's length commercial terms, there can be no assurance
that independent parties negotiating at arm's length would have arrived at the same terms. Since we are under common control with MI Developments, there is a risk that any future decisions or actions
taken by either of us regarding these leases (including with respect to renewals, amendments, disputes or enforcement proceedings) and any new leases may not be the same as if we operated on an arm's
length basis. </FONT></P>

<P><FONT SIZE=2><B><I>Our Forbearance Agreement with Magna Entertainment will expire in May&nbsp;2006.  </I></B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We previously made a commitment to our shareholders that we would not, for a period of approximately seven years, without the prior consent of the holders of a
majority of our Class&nbsp;A Subordinate Voting Shares: (i)&nbsp;make any further debt or equity investment in, or otherwise give financial assistance to, Magna Entertainment or any of its
subsidiaries; or (ii)&nbsp;invest in any business or assets determined in good faith by our independent directors to be non-automotive-related and not ancillary or incidental to our
automotive-related business, other than through our historical investment in Magna Entertainment. This commitment is contained in a Forbearance Agreement between Magna Entertainment and Magna in which
our shareholders are express third party beneficiaries. The Forbearance Agreement will expire in accordance with its terms on May&nbsp;31, 2006 and will not be extended. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>36</FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Since
we are under common control with Magna Entertainment, there is a risk that any future decisions or actions taken with respect to Magna Entertainment may not be the same as if we
operated on an arm's length basis. However, any material transaction with Magna Entertainment would require review and prior approval by the independent members of our Board. In addition, our
Corporate Constitution, which forms part of our charter documents, prohibits us from making investments in certain "unrelated businesses" where such investment, together with the aggregate of all
other investments in unrelated businesses on the date in question, exceeds 20% of our "available equity" at the end of the financial quarter immediately preceding the date of investment
(see&nbsp;"ITEM 9. CORPORATE CONSTITUTION&nbsp;&#151;&nbsp;Unrelated Investments" below). </FONT></P>

<P><FONT SIZE=2><B>ITEM 4.&nbsp;&nbsp;&nbsp;&nbsp;DIVIDENDS  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Holders of our Class&nbsp;A Subordinate Voting Shares and Class&nbsp;B Shares are entitled to a pro rated amount of any cash dividends declared by our Board
of Directors on these shares. The following table sets forth the cash dividends we have paid on each of our Class&nbsp;A Subordinate Voting Shares and Class&nbsp;B Shares for the last three years: </FONT></P>

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<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="48%" ALIGN="LEFT"><FONT SIZE=1><B>Fiscal Period<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="19%" ALIGN="LEFT"><FONT SIZE=1><B>Payment Date<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="19%" ALIGN="LEFT"><FONT SIZE=1><B>Record Date<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Amount per Share</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="48%"><FONT SIZE=2>Calendar 2006 (to&nbsp;date)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><FONT SIZE=2>March&nbsp;24, 2006</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><FONT SIZE=2>March&nbsp;10, 2006</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>0.38</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="48%"><BR><FONT SIZE=2> Calendar 2005</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="19%"><FONT SIZE=2><BR>
December&nbsp;15, 2005</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="19%"><FONT SIZE=2><BR>
November&nbsp;30, 2005</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>$</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2><BR>
0.38</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="48%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><FONT SIZE=2>September&nbsp;15, 2005</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><FONT SIZE=2>August&nbsp;31, 2005</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>0.38</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="48%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><FONT SIZE=2>June&nbsp;15, 2005</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><FONT SIZE=2>May&nbsp;27, 2005</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>0.38</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="48%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><FONT SIZE=2>March&nbsp;23, 2005</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><FONT SIZE=2>March&nbsp;11, 2005</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>0.38</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="48%"><BR><FONT SIZE=2> Calendar 2004</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="19%"><FONT SIZE=2><BR>
December&nbsp;15, 2004</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="19%"><FONT SIZE=2><BR>
November&nbsp;30, 2004</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>$</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2><BR>
0.38</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="48%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><FONT SIZE=2>September&nbsp;15, 2004</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><FONT SIZE=2>August&nbsp;31, 2004</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>0.38</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="48%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><FONT SIZE=2>June&nbsp;15, 2004</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><FONT SIZE=2>May&nbsp;28, 2004</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>0.38</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="48%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><FONT SIZE=2>March&nbsp;18, 2004</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><FONT SIZE=2>March&nbsp;9, 2004</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>0.34</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="48%"><BR><FONT SIZE=2> Calendar 2003</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="19%"><FONT SIZE=2><BR>
December&nbsp;15, 2003</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="19%"><FONT SIZE=2><BR>
November&nbsp;28, 2003</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>$</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2><BR>
0.34</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="48%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><FONT SIZE=2>September&nbsp;15, 2003</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><FONT SIZE=2>August&nbsp;29, 2003</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>0.34</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="48%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><FONT SIZE=2>June&nbsp;16, 2003</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><FONT SIZE=2>May&nbsp;30, 2003</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>0.34</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="48%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><FONT SIZE=2>March&nbsp;18, 2003</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="19%"><FONT SIZE=2>March&nbsp;7, 2003</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>0.34</FONT></TD>
</TR>
</TABLE>
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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
started paying cash dividends on our Class&nbsp;A Subordinate Voting Shares and Class&nbsp;B Shares (or&nbsp;their predecessors) on a quarterly basis in 1967. We have declared
cash dividends in respect of each of the last 57&nbsp;fiscal quarters, up to and including the fourth quarter of calendar 2005. The payment of future dividends and the amount thereof will be
determined by our Board of Directors in accordance with our Corporate Constitution (see&nbsp;"ITEM 9. CORPORATE CONSTITUTION&nbsp;&#151;&nbsp;Dividends; Minimum Profit
Performance" below), taking into account earnings, cash flow, capital requirements, our financial condition and other relevant factors. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
fiscal 1994, we established a dividend reinvestment plan in which registered shareholders have the option to purchase additional Class&nbsp;A Subordinate Voting Shares by investing
the cash dividends paid on their shares. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>37</FONT></P>

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<P><FONT SIZE=2><B>ITEM 5.&nbsp;&nbsp;&nbsp;&nbsp;MANAGEMENT'S DISCUSSION AND ANALYSIS  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reference is made to the "Management's Discussion and Analysis of Results of Operations and Financial Position" contained on pages&nbsp;6 to&nbsp;38 of our
Annual Report to Shareholders for the year ended December&nbsp;31, 2005, which is incorporated by reference into this Annual Information Form. </FONT></P>

<P><FONT SIZE=2><B>ITEM 6.&nbsp;&nbsp;&nbsp;&nbsp;DESCRIPTION OF CAPITAL STRUCTURE  </B></FONT></P>

<P><FONT SIZE=2><B>Authorized Share Capital  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our authorized share capital consists of an unlimited number of Class&nbsp;A Subordinate Voting Shares, 1,412,341&nbsp;Class&nbsp;B Shares and
99,760,000&nbsp;Preference Shares, issuable in series, all with no par value. As of March&nbsp;21, 2006, a total of 108,271,806&nbsp;Class&nbsp;A Subordinate Voting Shares and
1,093,983&nbsp;Class&nbsp;B Shares were outstanding. The percentage of aggregate voting rights attached to our outstanding Class&nbsp;A Subordinate Voting Shares as of March&nbsp;21, 2006 was
approximately 16.5%. No Preference Shares have been issued or are outstanding. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following is a brief description of the significant attributes of our authorized share capital and is qualified in its entirety by reference to the detailed provisions in our charter
documents. See "ITEM 9.&nbsp;&#151;&nbsp;CORPORATE CONSTITUTION" below for additional terms and conditions relating to our authorized share capital. The attributes of our
Class&nbsp;A Subordinate Voting Shares, our Class&nbsp;B Shares and our Preference Shares are set out in our charter documents, which include our Corporate Constitution. </FONT></P>

<P><FONT SIZE=2><B><I>Class&nbsp;A Subordinate Voting Shares  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The holders of our Class&nbsp;A Subordinate Voting Shares are entitled: </FONT></P>

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<TH WIDTH="4%" ALIGN="CENTER"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="94%" ALIGN="CENTER"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2>to one vote for each Class&nbsp;A Subordinate Voting Share held (together with the holders of our Class&nbsp;B Shares, which are entitled to vote at such meetings on the basis of 500&nbsp;votes per Class&nbsp;B Share
held) at all meetings of our shareholders, other than meetings of the holders of another class or series of shares;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
to receive, on a pro rated basis with the holders of our Class&nbsp;B Shares, any dividends (except for stock dividends, as described below) that may be declared by our Board of Directors, subject to the preferential rights attaching to shares
ranking in priority to our Class&nbsp;A Subordinate Voting Shares and our Class&nbsp;B Shares; and</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
to receive, after the payment of our liabilities and subject to the rights of the holders of our shares ranking in priority to our Class&nbsp;A Subordinate Voting Shares and our Class&nbsp;B Shares, on a pro rated basis with the holders of our
Class&nbsp;B Shares, all our property and net assets available for distribution in the event of our liquidation, dissolution or winding-up, whether voluntary or involuntary, or any other distribution of our assets among our shareholders for the
purpose of winding-up our affairs.</FONT></TD>
</TR>
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<P><FONT SIZE=2><B><I>Class&nbsp;B Shares  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The holders of our Class&nbsp;B Shares are entitled to: </FONT></P>

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<TH WIDTH="4%" ALIGN="CENTER"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="94%" ALIGN="CENTER"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2>500&nbsp;votes for each Class&nbsp;B Share held (together with the holders of our Class&nbsp;A Subordinate Voting Shares, which are entitled to vote at such meetings on the basis of one vote per share held) at all
meetings of our shareholders, other than meetings of the holders of another class or series of shares;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
receive, on a pro rated basis with the holders of our Class&nbsp;A Subordinate Voting Shares, any dividends (except for stock dividends, as described below) that may be declared by our Board of Directors, subject to the preferential rights attaching
to shares ranking in priority to our Class&nbsp;B Shares and our Class&nbsp;A Subordinate Voting Shares;</FONT></TD>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=2>38</FONT></P>

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<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="94%" ALIGN="CENTER"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2>receive, after the payment of all our liabilities and subject to the rights of the holders of our shares ranking in priority to our Class&nbsp;B Shares and our Class&nbsp;A Subordinate Voting Shares (including holders of
our Preference Shares), on a pro rated basis with the holders of our Class&nbsp;A Subordinate Voting Shares, all our property and net assets available for distribution in the event of our liquidation, dissolution or winding-up, whether voluntary or
involuntary, or any other distribution of our assets among our shareholders for the purpose of winding-up our affairs; and</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
convert our Class&nbsp;B Shares into our Class&nbsp;A Subordinate Voting Shares, on a one-for-one basis.</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2><B><I>Stock Dividends  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Board of Directors may declare a simultaneous dividend payable on our Class&nbsp;A Subordinate Voting Shares in our Class&nbsp;A Subordinate Voting Shares
and payable on our Class&nbsp;B Shares in our Class&nbsp;A Subordinate Voting Shares or in our Class&nbsp;B Shares. No dividend payable in our Class&nbsp;B Shares may be declared on our
Class&nbsp;A Subordinate Voting Shares. </FONT></P>


<P><FONT SIZE=2><B><I>Preference Shares  </I></B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Board of Directors may, without the approval of any of our shareholders, fix the number of shares in and determine the attributes of an individual series of
Preference Shares and issue shares of such series from time to time. The shares of each such series will be entitled to a preference over our Class&nbsp;A Subordinate Voting Shares and our
Class&nbsp;B Shares, but will rank equally with our Preference Shares of every other series with respect to the payment of dividends and in the distribution of all our property and net assets
available for distribution in the event of our liquidation, dissolution or winding-up, whether voluntary or involuntary, or any other distribution of our assets among our shareholders for
the purpose of winding-up our affairs. </FONT></P>

<P><FONT SIZE=2><B>Amendments to Share Provisions and Other Matters  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The provisions attaching to our Preference Shares, to a series of our Preference Shares, to our Class&nbsp;A Subordinate Voting Shares and to our Class&nbsp;B
Shares may not be deleted or varied without the approval of the holders of the class or series concerned. In addition, no shares of a class ranking prior to or on a parity with our Preference Shares,
our Class&nbsp;A Subordinate Voting Shares or our Class&nbsp;B Shares may be created without the approval of the holders of the class or each series of the class concerned. Any approval required
to be given must be given by of two-thirds of the votes cast by those present or voting at a meeting of the holders of the class or series concerned duly called for that purpose in
addition to any other consent or approval required by law. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither
our Class&nbsp;A Subordinate Voting Shares nor our Class&nbsp;B Shares may be subdivided, consolidated, reclassified or otherwise changed unless, contemporaneously therewith,
the other class of shares is subdivided, consolidated, reclassified or otherwise changed in the same proportion and in the same manner. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under
present law, any offer to purchase our Class&nbsp;B Shares, whether by way of a public offer or private transaction and regardless of the offered price, would not necessarily
result in an offer to purchase our Class&nbsp;A Subordinate Voting Shares. </FONT><FONT SIZE=2><B>Accordingly, holders of our Class&nbsp;A Subordinate Voting Shares do not have a right to
participate if a takeover bid is made for our Class&nbsp;B Shares.</B></FONT></P>

<P><FONT SIZE=2><B>Preferred Securities  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In September&nbsp;1999, we issued two series of unsecured junior subordinated debentures: our 8.65% Series&nbsp;A Preferred Securities, which were denominated
in Canadian dollars; and our 8.875% Series&nbsp;B Preferred Securities, which were denominated in U.S.&nbsp;dollars. Both series of Preferred Securities were redeemed in September&nbsp;2004. See
"ITEM 2.
GENERAL DEVELOPMENT OF THE BUSINESS&nbsp;&#151;&nbsp;RECENT DEVELOPMENTS IN OUR BUSINESS&nbsp;&#151;&nbsp;Financing and Securities Transactions" above. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>39</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<A NAME="page_dg1343_1_40"> </A>

<P><FONT SIZE=2><B>Ratings  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our senior debt has been rated A (stable) by Dominion Bond Rating Service and A (negative) by Standard&nbsp;&amp; Poor's. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dominion
Bond Rating Service's rating of our senior debt is based on its long-term debt rating scale that ranges from "AAA" to "D", which represents the range from highest to
lowest credit quality of the long-term debt rated. Long-term debt rated in the "A" rating category is in the third highest category of the relevant scale and is considered by
Dominion Bond Rating Services to be of satisfactory credit quality. "High" and "low" grades are used to indicate the relative standing of a credit within a particular rating category. The lack of one
of these designations indicates a rating which is in the middle of the category. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Standard&nbsp;&amp;
Poor's rating of our senior debt is based on its long-term debt rating scale that ranges from "AAA" to "D", which represents the range from highest to
lowest credit quality of the long-term debt rated. Long-term debt rated in the "A" rating category is in the third highest category of the relevant scale and is considered by
Standard&nbsp;&amp; Poor's to be investment grade. The ratings from "AA" to "CCC" may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating
categories. The lack of one of these designations indicates a rating which is in the middle of the category. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Credit
ratings are intended to provide investors with an independent measure of the credit quality of debt and securities. The credit ratings accorded to our senior debt by the rating
agencies are not recommendations to purchase, hold or sell our debt or securities, since such ratings do not address market price or suitability for a particular investor. There is no assurance that
any rating will remain in effect for any given period of time or that any rating will not be revised or withdrawn entirely by a rating agency in the future. </FONT></P>

<P><FONT SIZE=2><B>ITEM 7.&nbsp;&nbsp;&nbsp;&nbsp;MARKET FOR SECURITIES  </B></FONT></P>

<P><FONT SIZE=2><B>Class&nbsp;A Subordinate Voting Shares and Class&nbsp;B Shares  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior&nbsp;to November&nbsp;15, 2004, our Class&nbsp;A Subordinate Voting Shares and Class&nbsp;B Shares were listed and posted for trading on the Toronto
Stock Exchange under the trading symbols "MG.A" and "MG.B", respectively. Since November&nbsp;15, 2004, pursuant to the Toronto Stock Exchange's 2004 Symbol Extension Changes, our Class&nbsp;A
Subordinate Voting Shares and Class&nbsp;B Shares have been listed and posted for trading on the Toronto Stock Exchange under the symbols "MG.SV.A" and "MG.MV.B", respectively. Effective
May&nbsp;8, 2006, the trading symbols for our Class&nbsp;A Subordinate Voting Shares and Class&nbsp;B Shares will revert to "MG.A" and "MG.B", respectively. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
Class&nbsp;A Subordinate Voting Shares are listed and posted for trading on the New&nbsp;York Stock Exchange under the trading symbol "MGA". </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
high and low sale prices and volume of shares traded for each of our Class&nbsp;A Subordinate Voting Shares and our Class&nbsp;B Shares, as reported by the Toronto Stock
Exchange, for the months during the year ended December&nbsp;31, 2005 were as follows: </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>40</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<A NAME="page_dg1343_1_41"> </A>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="47%" ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=5 ALIGN="CENTER"><FONT SIZE=1><B>Class&nbsp;A Subordinate Voting Shares</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=5 ALIGN="CENTER"><FONT SIZE=1><B>Class&nbsp;B Shares</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH WIDTH="47%" ALIGN="LEFT"><FONT SIZE=1><B>Month<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="7%" ALIGN="CENTER"><FONT SIZE=1><B>High<BR>
(Cdn.$)</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="7%" ALIGN="CENTER"><FONT SIZE=1><B>Low<BR>
(Cdn.$)</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="9%" ALIGN="CENTER"><FONT SIZE=1><B>Volume</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="7%" ALIGN="CENTER"><FONT SIZE=1><B>High<BR>
(Cdn.$)</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="7%" ALIGN="CENTER"><FONT SIZE=1><B>Low<BR>
(Cdn.$)</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="6%" ALIGN="CENTER"><FONT SIZE=1><B>Volume</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>January</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>99.90</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>90.51</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>4,050,854</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>109.00</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>99.00</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>910</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>February</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>97.00</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>90.00</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>4,994,586</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>100.50</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>95.50</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>450</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>March</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>92.00</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>79.92</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>9,230,953</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>91.50</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>83.00</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>400</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>April</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>83.19</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>75.00</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>4,506,092</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>82.50</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>78.00</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>1,149</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>May</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>85.83</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>75.25</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>5,103,680</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>85.00</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>81.25</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>648</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>June</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>89.00</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>83.00</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>4,177,350</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>90.00</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>87.50</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>1,460</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>July</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>95.00</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>85.00</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>3,561,429</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="CENTER"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="CENTER"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>101</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>August</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>96.50</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>86.65</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>4,688,718</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="CENTER"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="CENTER"><FONT SIZE=2>&#151;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="CENTER"><FONT SIZE=2>&#151;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>September</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>89.29</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>85.00</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>4,772,294</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>90.63</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>90.63</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>355</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>October</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>87.75</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>77.15</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>3,555,226</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>84.00</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>79.75</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>1,100</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>November</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>84.61</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>79.10</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>3,648,779</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>85.00</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>80.25</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>875</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>December</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>84.00</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>75.88</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>3,671,582</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>80.44</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>80.00</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="6%" ALIGN="RIGHT"><FONT SIZE=2>499</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2><B>6.5% Convertible Debentures  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As part of the privatization of Decoma, we assumed Decoma's obligations in respect of its 6.5% Convertible Debentures in the principal amount outstanding of
Cdn.$99,998,000 (see&nbsp;"ITEM 2. GENERAL DEVELOPMENT OF THE BUSINESS&nbsp;&#151;&nbsp;RECENT DEVELOPMENTS IN OUR BUSINESS&nbsp;&#151;&nbsp;Financing
and Securities Transactions" above). The 6.5% Convertible Debentures are listed and posted for trading on the Toronto Stock Exchange under the symbol "MG.DB" (formerly "DEC.DB" until March&nbsp;4,
2005). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
high and low sale prices (per&nbsp;Cdn.$100 principal amount) and volume traded for the 6.5% Convertible Debentures, as reported by the Toronto Stock Exchange, for the months
during the year ended December&nbsp;31, 2005 were as follows: </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="71%" ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=5 ALIGN="CENTER"><FONT SIZE=1><B>6.5% Convertible Debentures</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH WIDTH="71%" ALIGN="LEFT"><FONT SIZE=1><B>Month<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="7%" ALIGN="CENTER"><FONT SIZE=1><B>High<BR>
(Cdn.$)</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="7%" ALIGN="CENTER"><FONT SIZE=1><B>Low<BR>
(Cdn.$)</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="8%" ALIGN="CENTER"><FONT SIZE=1><B>Volume</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="71%"><FONT SIZE=2>January</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>122.10</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>113.00</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>11,940</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="71%"><FONT SIZE=2>February</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>124.50</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>114.00</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>87,500</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="71%"><FONT SIZE=2>March</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>119.00</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>115.00</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>3,720</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="71%"><FONT SIZE=2>April</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>114.00</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>107.01</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>102,940</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="71%"><FONT SIZE=2>May</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>115.00</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>111.00</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>29,340</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="71%"><FONT SIZE=2>June</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>118.00</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>115.00</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>36,350</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="71%"><FONT SIZE=2>July</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>118.00</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>115.00</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>2,430</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="71%"><FONT SIZE=2>August</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>120.74</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>105.01</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>14,700</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="71%"><FONT SIZE=2>September</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>116.00</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>113.00</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>93,241</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="71%"><FONT SIZE=2>October</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>113.00</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>106.01</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>850</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="71%"><FONT SIZE=2>November</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>112.95</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>111.00</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>80,530</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="71%"><FONT SIZE=2>December</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>112.50</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>105.00</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=2>11,500</FONT></TD>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=2>41</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<P><FONT SIZE=2><A
NAME="page_di1343_1_42"> </A> </FONT> <FONT SIZE=2><B>ITEM 8.&nbsp;&nbsp;&nbsp;&nbsp;DIRECTORS AND OFFICERS  </B></FONT></P>

<P><FONT SIZE=2><B>Directors  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Board of Directors currently consists of the following members: </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="96%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="38%" ALIGN="LEFT"><FONT SIZE=1><B>Name and Municipality of Residence<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="20%" ALIGN="CENTER"><FONT SIZE=1><B>Director Since</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="38%" ALIGN="CENTER"><FONT SIZE=1><B>Principal Occupation</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="38%" VALIGN="TOP"><FONT SIZE=2>WILLIAM H. FIKE</FONT><FONT SIZE=2><SUP>(1)</SUP><BR>
Florida, U.S.A.</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="20%" VALIGN="TOP"><FONT SIZE=2>June&nbsp;5, 1995</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="38%" VALIGN="TOP"><FONT SIZE=2>Corporate Director</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="38%" VALIGN="TOP"><BR><FONT SIZE=2>MANFRED GINGL</FONT><FONT SIZE=2><BR>
Ontario, Canada</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="20%" VALIGN="TOP"><FONT SIZE=2><BR>
January&nbsp;14, 2002</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="38%" VALIGN="TOP"><FONT SIZE=2><BR>
Executive Vice-Chairman of Magna</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="38%"><BR><FONT SIZE=2>MICHAEL D. HARRIS</FONT><FONT SIZE=2><SUP>(2)</SUP><BR>
Ontario, Canada</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="20%"><FONT SIZE=2><BR>
January&nbsp;8, 2003</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="38%"><FONT SIZE=2><BR>
Consultant and Senior Business Advisor, Goodmans&nbsp;LLP (Barristers and Solicitors)</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="38%"><BR><FONT SIZE=2>EDWARD C. LUMLEY</FONT><FONT SIZE=2><SUP>(2)(3)(5)</SUP><BR>
Ontario, Canada</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="20%"><FONT SIZE=2><BR>
December&nbsp;7, 1989</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="38%"><FONT SIZE=2><BR>
Vice-Chairman, BMO&nbsp;Nesbitt Burns (Investment and Corporate Banking)</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="38%" VALIGN="TOP"><BR><FONT SIZE=2>KLAUS MANGOLD</FONT><FONT SIZE=2><BR>
Baden-Wurttemburg, Germany</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="20%" VALIGN="TOP"><FONT SIZE=2><BR>
February&nbsp;26, 2004</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="38%" VALIGN="TOP"><FONT SIZE=2><BR>
Corporate Director</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="38%" VALIGN="TOP"><BR><FONT SIZE=2>DONALD RESNICK</FONT><FONT SIZE=2><SUP>(1)(4)(6)</SUP><BR>
Ontario, Canada</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="20%" VALIGN="TOP"><FONT SIZE=2><BR>
February&nbsp;25, 1982</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="38%" VALIGN="TOP"><FONT SIZE=2><BR>
Corporate Director</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="38%"><BR><FONT SIZE=2>ROYDEN R. RICHARDSON</FONT><FONT SIZE=2><SUP>(1)(2)(4)</SUP><BR>
Ontario, Canada</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="20%"><FONT SIZE=2><BR>
October&nbsp;31, 1990</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="38%"><FONT SIZE=2><BR>
President, RBQ Limited, Managing Director, Fairlane Asset Management Limited, and Vice-Chairman and Director, Richardson Partners Financial Limited (Investments)</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="38%"><BR><FONT SIZE=2>FRANK STRONACH</FONT><FONT SIZE=2><BR>
Lower Austria, Austria</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="20%"><FONT SIZE=2><BR>
December&nbsp;10, 1968</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="38%"><FONT SIZE=2><BR>
Partner, Stronach&nbsp;&amp;&nbsp;Co. (Consultant)</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="38%" VALIGN="TOP"><BR><FONT SIZE=2>FRANZ VRANITZKY</FONT><FONT SIZE=2><BR>
Lower Austria, Austria</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="20%" VALIGN="TOP"><FONT SIZE=2><BR>
June&nbsp;11, 1997</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="38%" VALIGN="TOP"><FONT SIZE=2><BR>
Corporate Director</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="38%" VALIGN="TOP"><BR><FONT SIZE=2>DONALD J. WALKER</FONT><FONT SIZE=2><BR>
Ontario, Canada</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="20%" VALIGN="TOP"><FONT SIZE=2><BR>
November&nbsp;7, 2005</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="38%" VALIGN="TOP"><FONT SIZE=2><BR>
Co-Chief Executive Officer of Magna</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="38%" VALIGN="TOP"><BR><FONT SIZE=2>SIEGFRIED WOLF</FONT><FONT SIZE=2><BR>
Lower Austria, Austria</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="20%" VALIGN="TOP"><FONT SIZE=2><BR>
March&nbsp;9, 1999</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="38%" VALIGN="TOP"><FONT SIZE=2><BR>
Co-Chief Executive Officer of Magna</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="38%" VALIGN="TOP"><BR><FONT SIZE=2>LAWRENCE D. WORRALL</FONT><FONT SIZE=2><SUP>(1)</SUP><BR>
Ontario, Canada</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="20%" VALIGN="TOP"><FONT SIZE=2><BR>
November&nbsp;7, 2005</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="38%" VALIGN="TOP"><FONT SIZE=2><BR>
Corporate Director</FONT></TD>
</TR>
</TABLE>
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<HR NOSHADE ALIGN="LEFT" WIDTH="60">
<DL compact>
<DT style='margin-bottom:-9pt;'><FONT SIZE=1>(1)</FONT></DT><DD><FONT SIZE=1>Member
of the Audit Committee
<BR><BR></FONT></DD><DT style='margin-bottom:-9pt;'><FONT SIZE=1>(2)</FONT></DT><DD><FONT SIZE=1>Member
of the Corporate Governance and Compensation Committee
<BR><BR></FONT></DD><DT style='margin-bottom:-9pt;'><FONT SIZE=1>(3)</FONT></DT><DD><FONT SIZE=1>Lead
Director of the Board of Directors
<BR><BR></FONT></DD><DT style='margin-bottom:-9pt;'><FONT SIZE=1>(4)</FONT></DT><DD><FONT SIZE=1>Member
of the Health and Safety and Environmental Committee
<BR><BR></FONT></DD><DT style='margin-bottom:-9pt;'><FONT SIZE=1>(5)</FONT></DT><DD><FONT SIZE=1>Mr.&nbsp;Lumley
served as a director of Air Canada when it filed for protection under the C</FONT><FONT SIZE=1><I>ompanies' Creditors Arrangement Act (CCAA)</I></FONT><FONT SIZE=1>
in 2003. Air Canada successfully emerged from the CCAA proceedings and was restructured pursuant to a plan of arrangement in September&nbsp;2004. Mr.&nbsp;Lumley is no longer a director of Air
Canada. </FONT></DD></DL>
<P ALIGN="CENTER"><FONT SIZE=2>42</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<A NAME="page_di1343_1_43"> </A>
<DL compact>
<DT style='margin-bottom:-9pt;'><FONT SIZE=1>(6)</FONT></DT><DD><FONT SIZE=1>Mr.&nbsp;Resnick
served as a director of Ntex Incorporated, which was subject to cease trade orders in Ontario, Alberta and British Columbia in mid-2002 for failure to
file financial statements. These cease trade orders were never revoked as Ntex made an assignment in bankruptcy in June&nbsp;2003. Mr.&nbsp;Resnick resigned as a director of Ntex in
June&nbsp;2002. </FONT></DD></DL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All of our directors were elected to their present terms of office by our shareholders at our Annual Meeting of Shareholders held on May&nbsp;3,
2005, other than Mr.&nbsp;Walker and Mr.&nbsp;Worrall, both of whom were appointed as directors on November&nbsp;7, 2005. The term of office for each director expires at the conclusion of the
next annual meeting of our shareholders. At present, no executive committee of the Board of Directors has been constituted. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
of the directors have held the principal occupations identified above (or&nbsp;another position with the same employer) for not less than five years, except as follows: </FONT></P>

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<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="4%" ALIGN="CENTER"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="94%" ALIGN="CENTER"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2>Mr.&nbsp;Harris was the Premier of Ontario from June&nbsp;1995 until March&nbsp;2002 and has acted as a business consultant since that date and as a Senior Business Advisor to Goodmans&nbsp;LLP since
October&nbsp;2002.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
Dr.&nbsp;Mangold was a member of the Management Board of DaimlerChrysler AG until December&nbsp;2003 and has been a corporate director and consultant since then.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
Mr.&nbsp;Richardson has served as President, RBQ Limited since its formation in 1983. He has served as the Managing Director, Fairlane Asset Management Limited and as the Vice-Chairman and Director, Richardson Partners Financial Limited since
June&nbsp;2003.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
Mr.&nbsp;Walker served as the President and Chief Executive Officer of Intier Automotive&nbsp;Inc. until its privatization in April&nbsp;2005.</FONT></TD>
</TR>
</TABLE>
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<P><FONT SIZE=2><B>Officers  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our officers currently consist of the following persons: </FONT></P>

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<TABLE WIDTH="90%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="49%" ALIGN="LEFT"><FONT SIZE=1><B>Name and Municipality of Residence<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="49%" ALIGN="CENTER"><FONT SIZE=1><B>Principal Occupation</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="49%" VALIGN="TOP"><FONT SIZE=2>FRANK STRONACH</FONT><FONT SIZE=2><BR>
Lower Austria, Austria</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%" VALIGN="TOP"><FONT SIZE=2>Chairman of the Board (since November&nbsp;1971)</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="49%"><BR><FONT SIZE=2>DONALD J. WALKER</FONT><FONT SIZE=2><BR>
Ontario, Canada</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2><BR>
Co-Chief Executive Officer (since April&nbsp;2005)</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="49%"><BR><FONT SIZE=2>SIEGFRIED WOLF</FONT><FONT SIZE=2><BR>
Lower Austria, Austria</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2><BR>
Co-Chief Executive Officer (since April&nbsp;2005)</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="49%" VALIGN="TOP"><BR><FONT SIZE=2>MANFRED GINGL</FONT><FONT SIZE=2><BR>
Ontario, Canada</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="49%" VALIGN="TOP"><FONT SIZE=2><BR>
Executive Vice-Chairman (since May&nbsp;2002)</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="49%" VALIGN="TOP"><BR><FONT SIZE=2>MARK T. HOGAN</FONT><FONT SIZE=2><BR>
Michigan, U.S.A.</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="49%" VALIGN="TOP"><FONT SIZE=2><BR>
President (since August&nbsp;2004)</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="49%"><BR><FONT SIZE=2>J. BRIAN COLBURN</FONT><FONT SIZE=2><BR>
Ontario, Canada</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2><BR>
Executive Vice-President, Special Projects (since May&nbsp;1992) and Secretary (since January&nbsp;1994)</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="49%"><BR><FONT SIZE=2>VINCENT J. GALIFI</FONT><FONT SIZE=2><BR>
Ontario, Canada</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2><BR>
Executive Vice-President (since September&nbsp;1996) and Chief Financial Officer (since December&nbsp;1997)</FONT></TD>
</TR>
</TABLE>
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<P ALIGN="CENTER"><FONT SIZE=2>43</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<A NAME="page_di1343_1_44"> </A>

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<TABLE WIDTH="90%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="49%" ALIGN="LEFT"><FONT SIZE=1><B>Name and Municipality of Residence<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="49%" ALIGN="CENTER"><FONT SIZE=1><B>Principal Occupation</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="49%"><BR><FONT SIZE=2>PETER KOOB</FONT><FONT SIZE=2><BR>
Hausen, Germany</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2><BR>
Executive Vice-President, Corporate Development (since May&nbsp;2002)</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="49%"><BR><FONT SIZE=2>MARC NEEB</FONT><FONT SIZE=2><BR>
Ontario, Canada</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2><BR>
Executive Vice-President, Global Human Resources (since January&nbsp;2003)</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="49%"><BR><FONT SIZE=2>JEFFREY O. PALMER</FONT><FONT SIZE=2><BR>
Ontario, Canada</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2><BR>
Executive Vice-President (since January&nbsp;2001)</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="49%"><BR><FONT SIZE=2>GERHARD RANDA</FONT><FONT SIZE=2><BR>
New&nbsp;York, U.S.A.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2><BR>
Executive Vice-President, Planning (since November&nbsp;2005)</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="49%"><BR><FONT SIZE=2>TOMMY J. SKUDUTIS</FONT><FONT SIZE=2><BR>
Ontario, Canada</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2><BR>
Executive Vice-President, Operations (since May&nbsp;2001)</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="49%"><BR><FONT SIZE=2>KEITH STEIN</FONT><FONT SIZE=2><BR>
Ontario, Canada</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2><BR>
Senior Vice-President, Corporate Affairs (since February&nbsp;2005)</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="49%"><BR><FONT SIZE=2>GERD BRUSIUS</FONT><FONT SIZE=2><BR>
Lower Austria, Austria</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2><BR>
Vice-President, Operational Improvement and Quality&nbsp;&#151;&nbsp;Europe (since March&nbsp;2006)</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="49%" VALIGN="TOP"><BR><FONT SIZE=2>ANTHONY DOBRANOWSKI</FONT><FONT SIZE=2><BR>
Ontario, Canada</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="49%" VALIGN="TOP"><FONT SIZE=2><BR>
Vice-President (since March&nbsp;2006)</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="49%"><BR><FONT SIZE=2>HUBERT H&Ouml;DL</FONT><FONT SIZE=2><BR>
Lower Austria, Austria</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2><BR>
Vice-President, Marketing and New&nbsp;Business Development&nbsp;&#151;&nbsp;Europe (since March&nbsp;2006)</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="49%"><BR><FONT SIZE=2>PATRICK W. D. MCCANN</FONT><FONT SIZE=2><BR>
Ontario, Canada</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2><BR>
Vice-President (since January&nbsp;2005) and Controller (since May&nbsp;2002)</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="49%"><BR><FONT SIZE=2>ROLAND B. NIMMO</FONT><FONT SIZE=2><BR>
Ontario, Canada</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2><BR>
Vice-President, Internal Audit (since September&nbsp;2002)</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="49%"><BR><FONT SIZE=2>SCOTT PARADISE</FONT><FONT SIZE=2><BR>
Michigan, U.S.A.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2><BR>
Vice-President, Marketing and New&nbsp;Business Development&nbsp;&#151;&nbsp;The Americas (since March&nbsp;2006)</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="49%"><BR><FONT SIZE=2>STEVEN REESOR</FONT><FONT SIZE=2><BR>
Ontario, Canada</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2><BR>
Vice-President, Special Projects (since May&nbsp;2005)</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="49%"><BR><FONT SIZE=2>THOMAS SCHULTHEISS</FONT><FONT SIZE=2><BR>
Zug, Switzerland</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2><BR>
Vice-President and General Counsel&nbsp;&#151;&nbsp;Europe (since March&nbsp;2006)</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="49%"><BR><FONT SIZE=2>MIKE SINNAEVE</FONT><FONT SIZE=2><BR>
Ontario, Canada</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2><BR>
Vice-President, Operational Improvement and Quality&nbsp;&#151;&nbsp;The Americas (since March&nbsp;2006)</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="49%"><BR><FONT SIZE=2>LOUIS TONELLI</FONT><FONT SIZE=2><BR>
Ontario, Canada</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2><BR>
Vice-President, Investors Relations (since November&nbsp;2003)</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="BOTTOM">
<TD WIDTH="49%" VALIGN="TOP"><BR><FONT SIZE=2>PAUL BROCK</FONT><FONT SIZE=2><BR>
Ontario, Canada</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="49%" VALIGN="TOP"><FONT SIZE=2><BR>
Treasurer (since May&nbsp;2005)</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="49%" VALIGN="TOP"><BR><FONT SIZE=2>BASSEM SHAKEEL</FONT><FONT SIZE=2><BR>
Ontario, Canada</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="49%" VALIGN="TOP"><FONT SIZE=2><BR>
Assistant Secretary (since November&nbsp;2005)</FONT></TD>
</TR>
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<P ALIGN="CENTER"><FONT SIZE=2>44</FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
the extent that our officers have not held the offices identified above for the last five years, they have held the following offices or positions with us and/or have had the
following principal occupations, during the last five years: </FONT></P>

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<TR VALIGN="BOTTOM">
<TH WIDTH="4%" ALIGN="CENTER"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="94%" ALIGN="CENTER"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2>Prior to May&nbsp;2002, Mr.&nbsp;Gingl was our Vice-Chairman since January&nbsp;2002, and also from November&nbsp;1999 to July&nbsp;2000. Mr.&nbsp;Gingl has also served as Chairman of Tesma from February&nbsp;2004 to
February&nbsp;2005, Vice Chairman and Chief Executive Officer of Tesma since 2002 and President and Chief Executive Officer of Tesma since 1995. Mr.&nbsp;Gingl also served as our President between 1981 and 1994.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
Prior to April&nbsp;2005, Mr.&nbsp;Walker served as the President and Chief Executive Officer of Intier Automotive&nbsp;Inc. since its spin-off in May&nbsp;2001. Mr.&nbsp;Walker also served as our President and Chief Executive Officer between 1994
and 2001.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
Prior to April&nbsp;2005, Mr.&nbsp;Wolf served as one of our Executive Vice-Chairmen since May&nbsp;2002, prior to which he served as our Vice-Chairman since February&nbsp;2002 and from March&nbsp;1999 to February&nbsp;2001. Mr.&nbsp;Wolf has also
been the Chairman of the Supervisory Board of Magna Steyr since May&nbsp;2003 and, prior to that, was the President and Chief Executive Officer of Magna Steyr since September&nbsp;2001. Mr.&nbsp;Wolf has also held executive and director positions in
our European corporate operations, including serving as the Chairman of the Supervisory Board of Magna International Europe since May&nbsp;2003.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
Prior to August&nbsp;2004, Mark Hogan was the Group Vice President, Advanced Vehicle Development of General Motors since January&nbsp;2002. Prior to that, Mr.&nbsp;Hogan was a Group Vice President of General Motors and the President of </FONT><FONT
SIZE=2><I>e</I></FONT><FONT SIZE=2>GM from August&nbsp;1998 to December&nbsp;2001.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
Mr.&nbsp;Koob has been the Vice-Chairman of the Supervisory Board of Magna Steyr since May&nbsp;2003 and, prior to that, served as an Executive Vice-President of Magna Steyr since September&nbsp;2001. Mr.&nbsp;Koob has also held executive and
director positions in our European corporate operations, including serving as a member of the Supervisory Board of Magna International Europe since May&nbsp;2003.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
Prior to January&nbsp;2003, Mr.&nbsp;Neeb was our Vice-President, Global Human Resources since May&nbsp;2002. Prior to that, he was our Vice-President, Human Resources from August&nbsp;2000 to May&nbsp;2002. He was our Director, Corporate
Administration from November&nbsp;1999 to July&nbsp;2000.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
Prior to November&nbsp;7, 2005, Mr.&nbsp;Randa was a member of the Management Board and the Chief Operating Officer of Bayerische Hypo&nbsp;&#151;&nbsp;und vereinsbank since 2003, prior to which he was the Chairman of the Supervisory Board of Bank
Austria Creditanstalt AG since 1995.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
Mr.&nbsp;Skudutis was President of Cosma from March&nbsp;2001 to March&nbsp;2002. Prior to that, he was Vice-President, Operations of Cosma since February&nbsp;1993.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
Prior to March&nbsp;2006, Mr.&nbsp;Brusius was responsible for operational improvement and quality in Europe with Magna International Europe AG (since January&nbsp;2005), prior to which Mr.&nbsp;Brusius served as the President for Decoma Europe
(since January&nbsp;2001).</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
Prior to March&nbsp;2006, Mr.&nbsp;Dobranowski was responsible for Magna Services since February 2005, including as President of Magna Services&nbsp;Inc., prior to which he served in a number of capacities with Tesma International&nbsp;Inc.,
including Vice-Chairman and Chief Financial Officer (since May&nbsp;2004) and Executive Vice-President and Chief Financial Officer (since 1995).</FONT></TD>
</TR>
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<P ALIGN="CENTER"><FONT SIZE=2>45</FONT></P>

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<TH WIDTH="4%" ALIGN="CENTER"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="94%" ALIGN="CENTER"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2>Prior to March&nbsp;2006, Mr.&nbsp;H&ouml;dl served as the Vice-President, Corporate Marketing and Business Development for Magna International Europe AG (since 2004), prior to which time, he served as the Executive
Vice-President, Sales&nbsp;&amp; Marketing for Magna Steyr (since 1998).</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
Prior to January&nbsp;2005, Mr.&nbsp;McCann was our Controller since May&nbsp;2002. Prior to that, he was our Assistant Controller since August&nbsp;2000 and our Group Controller, Europe from April&nbsp;1999 to August&nbsp;2000.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
Prior to September&nbsp;2002, Mr.&nbsp;Nimmo was a partner at the accounting firm Deloitte&nbsp;&amp; Touche&nbsp;L.L.P. since June&nbsp;2002. Prior to that, he was a partner at the former accounting firm Arthur Andersen&nbsp;L.L.P. from
November&nbsp;2000 to May&nbsp;2002. Prior to November&nbsp;2000, he was President of Nimmo Financial Corporation, a consulting firm.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
Prior to March&nbsp;2006, Mr.&nbsp;Paradise was responsible for marketing and new business development for North and South America (since April&nbsp;2005). Prior to that, Mr.&nbsp;Paradise served in several capacities with Intier Automotive&nbsp;Inc.,
 including Executive Vice-President, Sales and Marketing (since May&nbsp;2002) and Executive Vice-President, Sales, North America since May&nbsp;2001.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
Prior to May&nbsp;2005, Mr.&nbsp;Reesor served as the Deputy Chief of Police with the Toronto Police Service (1995 to March&nbsp;2005).</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
Prior to March&nbsp;2006, Mr.&nbsp;Schultheiss was responsible for legal affairs in Europe and served as General Counsel and Legal Counsel of our Magna Management AG subsidiary since January&nbsp;1998.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
Prior to March&nbsp;2006, Mr.&nbsp;Sinnaeve was responsible for operational improvement and quality in North America since April&nbsp;2005, prior to which time he served as the Vice-President, Quality and Operational Improvement of Intier
Automotive&nbsp;Inc. since May&nbsp;2001.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
Prior to November&nbsp;2003, Mr.&nbsp;Tonelli was our Director of Investor Relations since November&nbsp;2000. Prior to that, he was our Senior Manager, Investor Relations since February&nbsp;1999.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
Prior to May&nbsp;2005, Mr.&nbsp;Brock served as the Treasurer of Intier Automotive&nbsp;Inc. since November&nbsp;2001 and prior to that, he served as our Assistant Treasurer since May&nbsp;1999.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
Prior to November&nbsp;2005, Mr.&nbsp;Shakeel served as our Senior Legal Counsel since July&nbsp;2005 and also as Legal Counsel between May&nbsp;1999 and June&nbsp;2004. From July&nbsp;2004 to July&nbsp;2005, Mr.&nbsp;Shakeel served as Legal Counsel
with Tesma International&nbsp;Inc.</FONT></TD>
</TR>
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<P><FONT SIZE=2><B>Beneficial Ownership of Securities  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of March&nbsp;21, 2006, the number and percentage of securities of each class of our voting securities beneficially owned, directly or indirectly, or over
which control or direction was exercised by all of our directors and officers as a group (33&nbsp;persons), was 7,075,557 (approximately 6.5%) of our Class&nbsp;A Subordinate Voting Shares and
930,164 (approximately 85.0%) of our Class&nbsp;B Shares. </FONT></P>


<P><FONT SIZE=2><B>ITEM 9.&nbsp;&nbsp;&nbsp;&nbsp;CORPORATE CONSTITUTION  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Corporate Constitution forms part of our charter documents. The Corporate Constitution defines the rights of our employees and investors to participate in our
profits and growth and imposes discipline on our management. The brief description of the principal features of our Corporate Constitution which follows is subject to the detailed provisions of the
Corporate Constitution as contained in our charter documents. The description which follows does not purport to be complete and is qualified in its entirety by reference to the detailed provisions of
the Corporate Constitution as contained in our charter documents. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>46</FONT></P>

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<P><FONT SIZE=2><B>Board of Directors  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Corporate Constitution requires that a majority of the members of our Board of Directors be individuals who are not also our officers, employees or persons
related to our officers or employees. </FONT></P>


<P><FONT SIZE=2><B>Employee Equity Participation and Profit Sharing Programs  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Corporate Constitution requires that 10% of our employee pre-tax profits before profit sharing (as&nbsp;defined in the Corporate Constitution)
for each financial year be allocated in that financial year or the immediately following financial year to: </FONT></P>

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<TH WIDTH="4%" ALIGN="CENTER"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="94%" ALIGN="CENTER"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2>the employee equity participation and profit sharing programs and any other profit sharing programs we have established for our employees; and</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
our defined benefit pension plan (for&nbsp;participating employees).</FONT></TD>
</TR>
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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Senior
members of divisional, regional and executive management who are direct profit participators do not participate in these employee equity participation and profit sharing programs. </FONT></P>

<P><FONT SIZE=2><B>Dividends; Minimum Profit Performance  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Corporate Constitution provides that unless otherwise approved by ordinary resolution of the holders of our Class&nbsp;A Subordinate Voting Shares and our
Class&nbsp;B Shares, voting as separate classes, the holders of our Class&nbsp;A Subordinate Voting Share and Class&nbsp;B Shares will be entitled to receive and we will pay, if, as and when
declared by our Board of Directors out of funds properly applicable to the payment of dividends, non-cumulative dividends in respect of each financial year so that the aggregate of the
dividends paid or payable in respect of such year is: </FONT></P>

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<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="94%" ALIGN="CENTER"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2>equal to at least 10% of our after-tax profits (as&nbsp;defined in the Corporate Constitution) after providing for dividends on preference shares, if any, for such year; and</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
on average, equal to at least 20% of our after-tax profits (as&nbsp;defined in the Corporate Constitution) after providing for dividends on preference shares, if any, for such financial year and the two immediately preceding financial
years.</FONT></TD>
</TR>
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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
at any time our after-tax profits (as&nbsp;defined in the Corporate Constitution) are less than 4% of the average stated capital attributable to our Class&nbsp;A
Subordinate Voting Shares and Class&nbsp;B Shares at the beginning and at the end of the financial year in question, for two consecutive financial years or we fail to pay the required dividends
described above for a period of two consecutive financial years, the holders of our Class&nbsp;A Subordinate Voting Shares will, until the 4% return is achieved in a succeeding financial year and
all required dividends, if any, are paid, have the exclusive right, voting separately as a class, to nominate and elect two directors at the next meeting of our shareholders at which directors are to
be elected such right to increase the number of directors which may be elected to continue for each consecutive two-year period. If the 4% return is not achieved or a required dividend is
not paid for any two consecutive financial years following the initial two consecutive financial years, then the holders of our Class&nbsp;A Subordinate Voting Shares will, until the 4% return is
achieved for one financial year and all required dividends are paid, have the exclusive right, voting separately as a class, to nominate and elect two additional directors at the next meeting of
shareholders at which directors are to be elected. Once the right of holders of our Class&nbsp;A Subordinate Voting Shares to elect such directors terminates, the directors who had been so elected
will nonetheless serve until their successors are duly elected at the next meeting of our shareholders. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>47</FONT></P>

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<P><FONT SIZE=2><B>Changes in Share Capital  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as otherwise approved by the holders of at least a majority of each of our Class&nbsp;A Subordinate Voting Shares and Class&nbsp;B Shares, voting as
separate classes, our Corporate Constitution prohibits: </FONT></P>

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<TH WIDTH="4%" ALIGN="CENTER"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="94%" ALIGN="CENTER"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2>an increase in the maximum number of authorized shares of any class of our capital stock (other than our Class&nbsp;A Subordinate Voting Shares which may be issued in an unlimited amount); and</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
the creation of any new class or series of capital stock having voting rights (other than on default in the payment of dividends) or having rights to participate in our profits (other than securities convertible into existing classes of shares or a
class or series of shares having fixed dividends or dividends determined without regard to profits).</FONT></TD>
</TR>
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<P><FONT SIZE=2><B>Unrelated Investments  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless approved by the holders of at least a majority of each of our Class&nbsp;A Subordinate Voting Shares and Class&nbsp;B Shares, voting as separate
classes, our Corporate Constitution prohibits us from making an investment (whether direct or indirect, by means of loans, guarantee, or otherwise) in any "unrelated business" where such an
investment, together with the aggregate of all other investments in unrelated businesses on the date in question, exceeds 20% of our "available equity" at the end of the financial quarter immediately
preceding the date of investment. For purposes of our Corporate Constitution, the term "unrelated business" means any business that: </FONT></P>

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<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="94%" ALIGN="CENTER"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2>does not relate to the design, manufacture, distribution or sale of motor vehicles or motor vehicle parts, components, assemblies or accessories;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
does not utilize technology, manufacturing processes, equipment or skilled personnel in a manner similar to that utilized or under development by us; or</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
does not involve the provision of products or services to our suppliers and customers, or the provisions of products or services similar to those provided by our suppliers and customers from time to time.</FONT></TD>
</TR>
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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
business will be deemed to cease to be an unrelated business for purposes of our Corporate Constitution if the net profits after tax of such business exceeds on average 5% of our
aggregate investment in such business for two out of any three consecutive years after the date of such investment. For purposes of our Corporate Constitution, the term "available equity" is defined
to mean our total shareholders' equity, less the stated capital of any non-participating preference shares. </FONT></P>

<P><FONT SIZE=2><B>Research and Development  </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Corporate Constitution requires a minimum of 7% of our pre-tax profits (as&nbsp;defined in the Corporate Constitution) for any financial year to
be allocated to research and development during that financial year or the immediately following financial year. </FONT></P>

<P><FONT SIZE=2><B>Social Objectives  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to our Corporate Constitution, a maximum of 2% of our pre-tax profits (as&nbsp;defined in the Corporate Constitution) for any financial
year may be allocated to the promotion of "social objectives" during the financial year or the immediately following financial year. For purposes of our Corporate Constitution, the term "social
objectives" means objectives which, in the sole opinion of our executive management, are of a political, patriotic, philanthropic, charitable, educational, scientific, artistic, social or other useful
nature to the communities in which we operate. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>48</FONT></P>

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<P><FONT SIZE=2><B>Incentive Bonuses; Management Base Salaries  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Corporate Constitution provides that aggregate incentive bonuses paid or payable to "corporate management" in respect of any financial year will not exceed 6%
of our pre-tax profits before profit sharing (as&nbsp;defined in the Corporate Constitution) for that financial year and that base salaries payable to such management will be comparable
to those in industry generally. For purposes of our Corporate Constitution, "corporate management" means our chief executive officer, chief operating officer, chief marketing officer and chief
administrative officer and any other employee designated by these persons from time to time to be included within "corporate management". Our Co-Chief Executive Officers, Executive
Vice-Chairman, President and certain of our Executive Vice-Presidents have been designated for these purposes. </FONT></P>

<P><FONT SIZE=2><B>ITEM 10.&nbsp;&nbsp;&nbsp;&nbsp;LEGAL PROCEEDINGS  </B></FONT></P>

<P><FONT SIZE=2><B>Centoco  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In November&nbsp;1997, we, and two of our subsidiaries, were sued in the Ontario Superior Court of Justice by KS Centoco&nbsp;Ltd., an Ontario-based steering
wheel manufacturer in which we have a 23% equity interest, and by Centoco Holdings Limited, the owner of the remaining 77% equity interest in KS Centoco&nbsp;Ltd. On March&nbsp;5, 1999, the
plaintiffs were granted leave to make substantial amendments to the original statement of claim in order to add several new defendants and claim additional remedies. In February&nbsp;2006, the
plaintiffs further amended their statement of claim to add an additional remedy. The amended statement of claim alleges, among other things: </FONT></P>

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<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="94%" ALIGN="CENTER"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2>breach of fiduciary duty by us and two of our subsidiaries;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
breach by us of our binding letter of intent with KS Centoco, including our covenant not to have any interest, directly or indirectly, in any entity that carries on the airbag business in North America, other than through MST Automotive&nbsp;Inc., a
company to be 77% owned by Magna and 23% owned by Centoco Holdings;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
the plaintiff's exclusive entitlement to certain airbag technologies in North America pursuant to an exclusive license agreement, together with an accounting of all revenues and profits resulting from the alleged use by us, TRW&nbsp;Inc. and other
unrelated third party automotive supplier defendants of such technology in North America;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
a conspiracy by us, TRW and others to deprive KS Centoco of the benefits of such airbag technology in North America and to cause Centoco Holdings to sell to TRW its interest in KS Centoco in conjunction with the sale by us to TRW of our interest in
MST Automotive&nbsp;GmbH and TEMIC Bayern-Chemie Airbag&nbsp;GmbH; and</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
oppression by the defendants.</FONT></TD>
</TR>
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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
plaintiffs are seeking, among other things, damages of approximately Cdn.$3.5&nbsp;billion. We have filed an amended statement of defence and counterclaim. Document production is
being completed and examinations for discovery have commenced. We intend to vigorously defend this case. At this time, notwithstanding the length of time which has transpired since the claim was
filed, these legal proceedings remain at an early stage. Notwithstanding this and the difficulty in predicting final outcomes, our management believes that the ultimate resolution of these claims will
not have a material adverse effect on our consolidated financial position. </FONT></P>

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<P><FONT SIZE=2><B>C-MAC  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On June&nbsp;10, 2004, Intier was served with a statement of claim issued in the Ontario Superior Court of Justice by C-MAC Invotronics&nbsp;Inc.,
a subsidiary of Solectron Corporation. The plaintiff is a supplier of electro-mechanical and electronic automotive parts and components to Intier. The statement of claim alleges, among other things: </FONT></P>

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<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="94%" ALIGN="CENTER"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2>improper use by Intier of the plaintiff's confidential information and technology in order to design and manufacture certain automotive parts and components; and</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="4%" ALIGN="RIGHT"><BR><FONT SIZE=2> &#149;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><BR>
breach of contract related to a failure by Intier to fulfill certain preferred sourcing obligations arising under a strategic alliance agreement, as well as follow a certain re-pricing mechanism set forth in a long-term supply agreement, in each case
signed by the parties at the time of Intier's disposition of the Invotronics business division to the plaintiff in September&nbsp;2000.</FONT></TD>
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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
plaintiff is seeking, among other things, compensatory damages in the amount of Cdn.$150&nbsp;million and punitive damages in the amount of Cdn.$10&nbsp;million and an accounting
of profits. On January&nbsp;7, 2005, Intier filed a Statement of Defence and Counterclaim for misrepresentation, breach of contract, conspiracy and interfering with economic interests. The parties
are currently engaged in discoveries. Despite the early stages of the litigation, management believes it has valid defenses to the plaintiff's claims and therefore intends to defend this case
vigorously. </FONT></P>

<P><FONT SIZE=2><B>Ford Class Actions  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We, and/or our subsidiaries Magna Donnelly and Intier, have been named with Ford Motor Company as defendants in class action proceedings in the Ontario Superior
Court of Justice, as well as state courts in North Carolina and Florida, as a result of Magna Donnelly's role as a supplier to Ford of door handles and Intier's role as a supplier of door latches, and
in certain cases door latch assemblies, for the Ford F-150, F-250, Expedition, Lincoln Navigator and Blackwood vehicles produced by Ford between November&nbsp;1995 and
April&nbsp;2000. Class proceedings in other states are anticipated. In these proceedings, plaintiffs are seeking compensatory damages in an amount to cover the cost of repairing the vehicles or
replacing the door latches, punitive damages, attorneys' fees and interest. Each of the class actions have similar claims and allege that the door latch systems are defective and do not comply with
applicable motor vehicle safety legislation and that the defendants conspired to hide the alleged defects from the end use consumer. These class proceedings are in the early stages and have not been
certified by any court. We deny these allegations and intend to vigorously defend the lawsuits, including taking steps to consolidate the state class proceedings to federal court wherever possible.
Given the early stages of the proceedings, it is not possible to predict their outcome. </FONT></P>


<P><FONT SIZE=2><B>Steel Supplier  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective August&nbsp;30, 2004, a supplier purported to terminate its obligations to supply us with certain steel products at agreed upon prices under two
supply agreements. The supplier subsequently continued to supply steel at an invoice price reflecting current market prices pending resolution of this matter and we continued to pay for the steel
products in question at the prices set out in the two supply agreements. The right of the supplier to terminate its obligations to supply steel under the supply agreements is being disputed by us
pursuant to arbitration proceedings that were commenced in the fourth quarter of 2004. The arbitration hearing is expected to be held in the fall of 2006. If the supplier is successful in the
arbitration, our maximum potential exposure as at December&nbsp;31, 2005 would be less than $85&nbsp;million. However, we believe that we have valid defenses to each of the claims and will
continue to vigorously defend the supplier's claims. </FONT></P>

<P><FONT SIZE=2><B>Other  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the ordinary course of business activities, we may become contingently liable for litigation and claims with customers, suppliers and former employees. In
addition, we may be, or could become, liable to incur environmental remediation costs to bring environmental contamination levels back within acceptable legal limits. On an ongoing basis, we assess
the likelihood of any adverse judgments or outcomes to these matters, as well as potential ranges of probable costs and losses. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>50</FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
determination of the provision required, if any, for these contingencies is made after analysis of each individual issue. The required provision may change in the future due to new
developments in each matter or changes in approach, such as a change in settlement strategy in dealing with these matters. </FONT></P>


<P><FONT SIZE=2><B>Warranty, Product Liability and Recall Costs  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In certain circumstances, we are at risk for warranty costs, including product liability and recall costs. Due to the nature of the costs, we make our best
estimate of the expected future costs, however, the ultimate amount of such costs could be materially different. We continue to experience increased customer pressure to assume greater warranty
responsibility. Currently, under most customer agreements, we only account for existing or probable claims. Under certain complete vehicle engineering and assembly contracts, we record an estimate of
future warranty related costs based on the terms of the specific customer agreements and the specific customer's warranty experience. </FONT></P>

<P><FONT SIZE=2><B>ITEM 11.&nbsp;&nbsp;&nbsp;&nbsp;INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reference is made to the section entitled "Interests of Management and Other Insiders in Certain Transactions" in our Management Information Circular/Proxy
Statement dated March&nbsp;28, 2006 for our annual meeting of shareholders to be held on May&nbsp;2, 2006, which is incorporated by reference into this Annual Information Form. </FONT></P>


<P><FONT SIZE=2><B>ITEM 12.&nbsp;&nbsp;&nbsp;&nbsp;TRANSFER AGENT AND REGISTRAR  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The transfer agent and registrar for our Class&nbsp;A Subordinate Voting Shares and our Class&nbsp;B Shares is Computershare Trust Company of Canada, at its
principal offices in Toronto, Ontario. The co-transfer agent and co-registrar for our Class&nbsp;A Subordinate Voting Shares in the United&nbsp;States is Computershare
Trust Company,&nbsp;Inc., at its offices in Golden, Colorado. </FONT></P>

<P><FONT SIZE=2><B>ITEM 13.&nbsp;&nbsp;&nbsp;&nbsp;AUDIT COMMITTEE  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Audit Committee is comprised of Messrs.&nbsp;Donald Resnick (Chair), William H. Fike, Royden R. Richardson and Lawrence D. Worrall. A copy of our Audit
Committee Charter, which was revised in 2006, is attached as Schedule&nbsp;B. Additional information about our Audit Committee is contained in the section entitled "Audit Committee and Audit
Committee Report" in our Management Information Circular/Proxy Statement dated March&nbsp;28, 2006 for our annual meeting of shareholders to be held on May&nbsp;2, 2006, which is incorporated by
reference into this Annual Information Form. </FONT></P>

<P><FONT SIZE=2><B>ITEM 14.&nbsp;&nbsp;&nbsp;&nbsp;ADDITIONAL INFORMATION  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Management Information Circular/Proxy Statement dated March&nbsp;28, 2006 contains the following additional information about us: </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#149;&nbsp;&nbsp;&nbsp;&nbsp;our
directors' and executive officers' remuneration and indebtedness; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#149;&nbsp;&nbsp;&nbsp;&nbsp;our
voting securities and their principal holders; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#149;&nbsp;&nbsp;&nbsp;&nbsp;securities
authorized for issuance under our equity compensation plans; </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#149;&nbsp;&nbsp;&nbsp;&nbsp;our
Audit Committee and its report; </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#149;&nbsp;&nbsp;&nbsp;&nbsp;our
Corporate Governance and Compensation Committee and its report; and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#149;&nbsp;&nbsp;&nbsp;&nbsp;our
statement of corporate governance practices. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>51</FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional
financial information about us is provided in our consolidated financial statements as at and for the three-year period ended December&nbsp;31, 2005. These
documents and additional information about us may be found on SEDAR, at <U>www.sedar.com</U>, as well as on our website, at <U>www.magna.com</U>. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
person may obtain copies of the following documents upon request from our Secretary, c/o Magna International&nbsp;Inc., 337&nbsp;Magna Drive, Aurora, Ontario, L4G&nbsp;7K1: </FONT></P>

<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>when
our securities are in the course of a distribution pursuant to a short form prospectus or a preliminary short form prospectus has been filed in respect of a distribution of our
securities,
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(i)</FONT></DT><DD><FONT SIZE=2>one
copy of this Annual Information Form;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(ii)</FONT></DT><DD><FONT SIZE=2>one
copy of our Annual Report to Shareholders for the year ended December&nbsp;31, 2005, which contains the following items:
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>the
"Management's Discussion and Analysis of Results of Operations and Financial Position", which is the only item incorporated by reference into this Annual Information
Form; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>&#149;</FONT></DT><DD><FONT SIZE=2>our
financial statements as at and for the three-year period ended December&nbsp;31, 2005;
<BR><BR></FONT></DD></DL>
</DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(iii)</FONT></DT><DD><FONT SIZE=2>one
copy of any of our interim financial statements subsequent to the financial statements for our most recently completed financial year;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(iv)</FONT></DT><DD><FONT SIZE=2>one
copy of our Management Information Circular/Proxy Statement dated March&nbsp;28, 2006; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(v)</FONT></DT><DD><FONT SIZE=2>one
copy of any other documents that are incorporated by reference into the preliminary short form prospectus or the short form prospectus and are not provided under
(i)&nbsp;to (iv)&nbsp;above; or
<BR><BR></FONT></DD></DL>
</DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2>at
any other time, one copy of any of the documents referred to in (a)(i) to (iv)&nbsp;above, provided that we may require payment of a reasonable charge for such copy if the
request is made by a person who is not one of our security holders. </FONT></DD></DL>
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<BR></FONT><FONT SIZE=2><B>SCHEDULE A<BR>  PRINCIPAL SUBSIDIARIES    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is a list of our principal subsidiaries as at December&nbsp;31, 2005, and their respective jurisdictions of incorporation. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Parent/subsidiary
relationships are identified by indentations. The list shows the percentages of the votes attached to all voting securities, and of each class of non-voting
securities, owned by us or over which control or direction is exercised by us. Percentages represent the total equity interest in a subsidiary, which is not necessarily indicative of percentage voting
control. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subsidiaries
not shown each represent less than 10% of our total consolidated revenues and total consolidated assets (although not all subsidiaries shown necessarily each represent more
than 10% of our total consolidated assets and total consolidated sales) and, if considered in the aggregate as a single subsidiary, represent less than 20% of our total consolidated revenues and total
consolidated assets. </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH COLSPAN=6 ALIGN="LEFT"><FONT SIZE=1><B>Subsidiary<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="11%" ALIGN="CENTER"><FONT SIZE=1><B>Voting Securities</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="13%" ALIGN="CENTER"><FONT SIZE=1><B>Jurisdiction of Incorporation</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=6><FONT SIZE=2>Cosma America Holdings&nbsp;Inc.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="CENTER"><FONT SIZE=2>100%</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="CENTER"><FONT SIZE=2>Delaware</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD COLSPAN=6><FONT SIZE=2>Decoma International Corp.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="CENTER"><FONT SIZE=2>100%</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="CENTER"><FONT SIZE=2>Ontario</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=6><FONT SIZE=2>Intier Automotive&nbsp;Inc.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="CENTER"><FONT SIZE=2>100%</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="CENTER"><FONT SIZE=2>Ontario</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=5><FONT SIZE=2>Intier Automotive of America,&nbsp;Inc.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="CENTER"><FONT SIZE=2>100%</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="CENTER"><FONT SIZE=2>Delaware</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=6><FONT SIZE=2>Magna Closures&nbsp;Inc.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="CENTER"><FONT SIZE=2>100%</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="CENTER"><FONT SIZE=2>Ontario</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD COLSPAN=6><FONT SIZE=2>Magna Donnelly Corporation</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="CENTER"><FONT SIZE=2>100%</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="CENTER"><FONT SIZE=2>Michigan</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=6><FONT SIZE=2>Magna Drivetrain&nbsp;Inc.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="CENTER"><FONT SIZE=2>100%</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="CENTER"><FONT SIZE=2>Ontario</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=5><FONT SIZE=2>Magna Powertrain Holdings USA, Inc.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="CENTER"><FONT SIZE=2>100%</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="CENTER"><FONT SIZE=2>Delaware</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=4><FONT SIZE=2>New Process Gear, Inc.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="CENTER"><FONT SIZE=2>100%</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="CENTER"><FONT SIZE=2>Delaware</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=4><FONT SIZE=2>Magna Powertrain USA, Inc.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="CENTER"><FONT SIZE=2>100%</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="CENTER"><FONT SIZE=2>Delaware</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=6><FONT SIZE=2>Magna International Investments&nbsp;S.A.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="CENTER"><FONT SIZE=2>100%</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="CENTER"><FONT SIZE=2>Luxembourg</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=5><FONT SIZE=2>Magna International Automotive Holding AG</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="CENTER"><FONT SIZE=2>100%</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="CENTER"><FONT SIZE=2>Austria</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=4><FONT SIZE=2>Magna Automotive Holding AG</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="CENTER"><FONT SIZE=2>100%</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="CENTER"><FONT SIZE=2>Austria</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Magna Steyr Metalforming AG</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="CENTER"><FONT SIZE=2>100%</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="CENTER"><FONT SIZE=2>Austria</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2>Magna Steyr AG&nbsp;&amp;&nbsp;Co. KG</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="CENTER"><FONT SIZE=2>100%</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="CENTER"><FONT SIZE=2>Austria</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="62%"><FONT SIZE=2>Magna Steyr Fahrzeugtechnik AG&nbsp;&amp;&nbsp;Co. KG</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="CENTER"><FONT SIZE=2>100%</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="CENTER"><FONT SIZE=2>Austria</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD WIDTH="62%"><FONT SIZE=2>Magna Powertrain AG&nbsp;&amp;&nbsp;Co. KG</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="CENTER"><FONT SIZE=2>100%</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="CENTER"><FONT SIZE=2>Austria</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=0>&nbsp;</FONT></TD>
<TD COLSPAN=5><FONT SIZE=2>New&nbsp;Magna Investments&nbsp;S.A.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="CENTER"><FONT SIZE=2>100%</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="CENTER"><FONT SIZE=2>Belgium</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD COLSPAN=6><FONT SIZE=2>Magna Structural Systems&nbsp;Inc.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="CENTER"><FONT SIZE=2>100%</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="13%" ALIGN="CENTER"><FONT SIZE=2>Ontario</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<P ALIGN="CENTER"><FONT SIZE=2>A-1</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="page_dm1343_1_1"> </A> </FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="dm1343_schedule_b_audit_committee_charter/mandate"> </A>
<A NAME="toc_dm1343_1"> </A>
<BR></FONT><FONT SIZE=2><B>SCHEDULE B<BR>  AUDIT COMMITTEE CHARTER/MANDATE    <BR>    </B></FONT></P>

<P><FONT SIZE=2><B>Purpose  </B></FONT></P>

<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>1.</FONT></DT><DD><FONT SIZE=2>The
Audit Committee (the&nbsp;"Committee") of the Board of Directors (the&nbsp;"Board") of the Corporation shall provide assistance to the Board in fulfilling the Board's oversight
responsibilities to the Corporation's shareholders, including with respect to:
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>the
integrity of the Corporation's financial statements and financial reporting process;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2>the
Corporation's compliance with applicable legal and regulatory requirements;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(c)</FONT></DT><DD><FONT SIZE=2>the
qualifications and independence of the independent auditor ("Independent Auditor");
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(d)</FONT></DT><DD><FONT SIZE=2>the
performance of the Corporation's internal auditors (the&nbsp;"Internal Auditors") and the Independent Auditor; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(e)</FONT></DT><DD><FONT SIZE=2>the
preparation of the Audit Committee Report in the Corporation's proxy circulars. </FONT></DD></DL>
</DD></DL>
<UL>

<P><FONT SIZE=2>In
so doing, it is the responsibility of the Committee to maintain free and open communication between the Board, the Independent Auditor, the Internal Auditors and management of the Corporation and
monitor their performance, recognizing that the Independent Auditor is ultimately responsible to the Committee, the Board and the shareholders of the Corporation. </FONT></P>

</UL>

<P><FONT SIZE=2><B>Organization and Composition  </B></FONT></P>

<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>2.</FONT></DT><DD><FONT SIZE=2>The
Committee shall be composed of not less than three (3)&nbsp;nor more than five (5)&nbsp;members, each of whom shall:
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>be
a director of the Corporation;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2>be
"financially literate" as such term is defined in Multilateral Instrument&nbsp;52-110 of the Canadian Securities Administrators, or any successor instrument thereto,
together with any other applicable law, rule or regulation; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(c)</FONT></DT><DD><FONT SIZE=2>meet
the independence standards required by the applicable rules and regulations of the OSC, the SEC, the NYSE and any other regulatory authority having jurisdiction. </FONT></DD></DL>
</DD></DL>
<UL>

<P><FONT SIZE=2>At
least one member of the Committee shall have such accounting or financial expertise as is required to comply with applicable law and the applicable rules and regulations of the Ontario Securities
Commission ("OSC"), the United&nbsp;States Securities and Exchange Commission (the&nbsp;"SEC"), The New&nbsp;York Stock Exchange ("NYSE") and any other regulatory authority having jurisdiction. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>3.</FONT></DT><DD><FONT SIZE=2>No
member of the Committee shall serve as a member of the audit committees of more than three other boards of directors of other public companies.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>4.</FONT></DT><DD><FONT SIZE=2>The
Board shall annually appoint the members of the Committee and appoint a Chairman from amongst those appointed, to hold office until the next annual meeting of shareholders of the
Corporation. The members of the Committee shall serve at the pleasure of the Board and vacancies occurring from time to time shall be filled by the Board.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>5.</FONT></DT><DD><FONT SIZE=2>A
majority of the members of the Committee shall constitute a quorum and all actions of the Committee shall be taken by a majority of the members present at the meeting. </FONT></DD></DL>
<P ALIGN="CENTER"><FONT SIZE=2>B-1</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<A NAME="page_dm1343_1_2"> </A>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>6.</FONT></DT><DD><FONT SIZE=2>The
Chairman of the Committee shall generally provide leadership to enhance the effectiveness of the Committee and act as the liaison between the Committee and the Board. The Chairman
shall also manage the Committee's activities and meetings, including by establishing a Committee meeting schedule for each year, developing meeting agendas after consultation with other members of the
Committee and circulating such agendas to Committee members in advance of Committee meetings, managing any outside legal or other experts retained by the Committee and managing the process of
reporting to the Board on the Committee's activities.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>7.</FONT></DT><DD><FONT SIZE=2>In
addition to regularly scheduled meetings pursuant to Section&nbsp;6, meetings of the Committee may be called by the Committee Chairman or any member of the Committee, by the
Chairman of the Board, a Chief Executive Officer, an Executive Vice-Chairman, a Vice-Chairman, the President, the Chief Financial Officer, the Secretary of the Corporation, the
head of the Corporation's Internal Audit Department or the Independent Auditor of the Corporation.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>8.</FONT></DT><DD><FONT SIZE=2>Unless
otherwise determined by the Committee, the Secretary or an Assistant Secretary of the Corporation shall act as Secretary of the Committee and shall provide the Independent
Auditor, the Chairman of the Board, any Chief Executive Officer, any Executive Vice-Chairman, any Vice-Chairman, the President and the Chief Financial Officer of the
Corporation, as well as the head of the Internal Audit Department and each member of the Committee with notice of each meeting of the Committee, all of whom shall be entitled to attend each Committee
meeting. The Secretary of the Committee will keep minutes of the Committee and such minutes will be retained in the corporate records of the Corporation. The Chairman of the Committee or the Committee
may request any officer or employee of the Corporation or its affiliates to attend a Committee meeting.
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>9.</FONT></DT><DD><FONT SIZE=2>In
addition to any meeting of the Committee called pursuant to Sections&nbsp;6 or&nbsp;7 above, the Committee shall meet with management and the Independent Auditor of the
Corporation within:
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>sixty
(60)&nbsp;days, or such lesser period as may be prescribed by applicable law, following the end of each of the first three financial quarters of the Corporation, but in any
event prior to the release of the financial results for each such quarter and their filing with the applicable regulatory authorities, to review and discuss the financial results of the Corporation
for the preceding fiscal quarter and the related Management's Discussion and Analysis of Results of Operations and Financial Condition ("MD&amp;A") as well as the results of the Independent Auditor's
review of the financial results for such quarter and, if satisfied, report thereon to, and recommend their approval by, the Board and their inclusion in the Corporation's required regulatory filings
for such quarter; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2>ninety
(90)&nbsp;days, or such lesser period as may be prescribed by applicable law, following the financial year-end of the Corporation, but in any event prior to the
release of the financial results for the financial year and their filing with the applicable regulatory authorities, to review and discuss the audited financial statements of the Corporation for the
preceding fiscal year and the related MD&amp;A and, if satisfied, report thereon to, and recommend their approval by, the Board and the Corporation's shareholders as required by applicable law and their
inclusion in the Corporation's Annual Report and other required regulatory filings. </FONT></DD></DL>
</DD></DL>
<UL>

<P><FONT SIZE=2>In
reviewing the quarterly and annual financial results the Committee shall ensure that there are adequate procedures for review of such financial results, including timely review by the Independent
Auditor. </FONT></P>

</UL>
<P ALIGN="CENTER"><FONT SIZE=2>B-2</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<A NAME="page_dm1343_1_3"> </A>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>10.</FONT></DT><DD><FONT SIZE=2>For
the purpose of performing their duties and responsibilities, the members of the Committee shall have full access to and the right to discuss any matters relating to such duties
with any or all of:
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>management;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2>any
employee of the Corporation;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(c)</FONT></DT><DD><FONT SIZE=2>the
Internal Audit Department staff;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(d)</FONT></DT><DD><FONT SIZE=2>the
Independent Auditor; and/or
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(e)</FONT></DT><DD><FONT SIZE=2>any
advisors to the Corporation, </FONT></DD></DL>
</DD></DL>
<UL>

<P><FONT SIZE=2>as
well as the right to inspect all books, records and facilities of the Corporation and its subsidiaries and shall be permitted to discuss such books, records and facilities and any other matters
relating to the financial position of the Corporation with any of the foregoing. </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>11.</FONT></DT><DD><FONT SIZE=2>The
Committee may retain outside financial, legal and other experts at the expense of the Corporation as it deems reasonably necessary to assist and advise the Committee in carrying
out the Committee's duties and responsibilities. </FONT></DD></DL>


<P><FONT SIZE=2><B>Duties and Responsibilities  </B></FONT></P>

<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>12.</FONT></DT><DD><FONT SIZE=2>With
respect to audit related matters and in addition to the duties and obligations of the Committee under applicable law, the Committee may examine and consider such matters in
relation to the internal and external audit of the Corporation's accounts (including the results of such audits), financial controls, financial reporting and in relation to the general financial
affairs of the Corporation as the Committee may deem necessary or desirable except for those matters specifically delegated by the Board to another standing Board committee or retained by the Board. </FONT></DD></DL>
<UL>

<P><FONT SIZE=2>In
carrying out the Committee's responsibilities, the Committee shall: </FONT></P>

<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(a)</FONT></DT><DD><FONT SIZE=2>be
directly responsible for recommending to the Board:
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(i)</FONT></DT><DD><FONT SIZE=2>the
Independent Auditor to be nominated for the purpose of preparing or issuing an audit report or related work or performing other audit, review or attest services for
the Corporation; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(ii)</FONT></DT><DD><FONT SIZE=2>the
compensation of the Independent Auditor; and
<BR><BR></FONT></DD></DL>
</DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(b)</FONT></DT><DD><FONT SIZE=2>be
directly responsible for overseeing the work of the Independent Auditor, including resolution of disagreements between management and the Independent Auditor regarding financial
reporting;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(c)</FONT></DT><DD><FONT SIZE=2>pre-approve,
or establish procedures and policies for the pre-approval of, the engagement and compensation of the Independent Auditor in respect of the
provision of all audit, audit-related, review or attest engagements required by applicable law;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(d)</FONT></DT><DD><FONT SIZE=2>review
and pre-approve all non-audit services permitted to be provided by the Independent Auditor in accordance with applicable law and the rules of the OSC,
SEC and any other applicable regulatory authority, provided that the Committee may pre-approve certain services within designated thresholds on an annual basis and further provided that
the Committee may delegate to the Chairman of the Committee, or such other member or members of the Committee that it deems appropriate, certain pre-approval authority provided that any
such approval granted by such persons shall be reported at the next regularly scheduled meeting of the Committee; </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>B-3</FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<A NAME="page_dm1343_1_4"> </A>
<UL>
<UL>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(e)</FONT></DT><DD><FONT SIZE=2>review
and approve the objectives and general scope of the external audit (including the overall audit plan, the proposed timing and completion dates) and discuss the external audit
with the Independent Auditor;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(f)</FONT></DT><DD><FONT SIZE=2>evaluate
the performance, quality control procedures and efficiency of the Independent Auditor in carrying out its responsibilities, review the experience and qualifications of the
Independent Auditor's audit team assigned to the audit of the Corporation and make annual recommendations to the Board as to the need (if&nbsp;any) for rotation of the Independent Auditor or the
members of the Independent Auditor 's audit team assigned to the audit of the Corporation;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(g)</FONT></DT><DD><FONT SIZE=2>review
the Independent Auditor's independence, including the receipt at least annually of:
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(i)</FONT></DT><DD><FONT SIZE=2>a
disclosure report from the Independent Auditor regarding the Auditor's independence as required by Independence Standards Board Standard No.&nbsp;1, "Independence
Discussions with Audit Committees", and/or other applicable regulatory requirements; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(ii)</FONT></DT><DD><FONT SIZE=2>a
report from the Independent Auditor describing:
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(A)</FONT></DT><DD><FONT SIZE=2>its
internal quality control procedures;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(B)</FONT></DT><DD><FONT SIZE=2>any
material issues raised in the most recent internal quality control review or peer review of the Independent Auditor, or by any inquiry or investigation by governmental or
professional authorities, within the preceding five years, respecting one or more independent audits carried out by the Independent Auditor, and the steps taken to deal with any such issues; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(C)</FONT></DT><DD><FONT SIZE=2>all
relationships between the Independent Auditor and the Corporation;
<BR><BR></FONT></DD></DL>
</DD></DL>
</DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(h)</FONT></DT><DD><FONT SIZE=2>satisfy
itself generally that there is a good working relationship between management and the Independent Auditor, review any management letters, schedule of unadjusted differences or
other reports of the Independent Auditor and discuss any material differences of opinion between management and the Independent Auditor;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(i)</FONT></DT><DD><FONT SIZE=2>satisfy
itself that management has established and is maintaining an adequate and effective system of internal financial and accounting controls and is responding on a timely basis to
any significant weaknesses which have been identified, and meet with and review significant reports of the Internal Auditors and the Independent Auditor relating to such internal controls;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(j)</FONT></DT><DD><FONT SIZE=2>review
the appointment, termination and replacement of the senior management of the Internal Auditors, the scope of the Internal Auditor's work plan and the overall performance,
staffing and resources of the Internal Auditors;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(k)</FONT></DT><DD><FONT SIZE=2>review
annually management's assessment and report relating to the effectiveness of the Corporation's internal financial controls and procedures in respect of each fiscal year of the
Corporation, as well as the Independent Auditors' attestation of such assessment, in each case when required under applicable law; </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>B-4</FONT></P>

<HR NOSHADE>
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<UL>
<UL>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(l)</FONT></DT><DD><FONT SIZE=2>review
the:
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(i)</FONT></DT><DD><FONT SIZE=2>selection,
use and quality of application of, and proposed material changes to, critical accounting principles and practices and related judgments; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(ii)</FONT></DT><DD><FONT SIZE=2>alternative
GAAP treatments for policies and practices relating to material items, including the ramifications of such alternative disclosures or treatments and any
recommended treatment, </FONT></DD></DL>
</DD></DL>
</UL>
<UL>
<UL>

<P><FONT SIZE=2>to
ensure that the critical accounting policies and practices and GAAP treatments adopted are appropriate and consistent with the Corporation's needs and applicable requirements, and discuss the same
with the Independent Auditor; </FONT></P>

</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(m)</FONT></DT><DD><FONT SIZE=2>review
on behalf of the Board, any actual or potential illegal, improper or fraudulent behaviour which may have a negative effect on the integrity or reputation of the Corporation,
review the findings of any regulatory authorities in relation to the financial affairs of the Corporation, review the disclosure of all insider and related party transactions and monitor compliance
with the Corporation's Code of Conduct and Ethics which may be in effect from time to time;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(n)</FONT></DT><DD><FONT SIZE=2>satisfy
itself that there is an agreed course of action leading to the resolution of significant unsettled issues that do not affect the audited financial statements
(e.g.&nbsp;disagreements regarding correction of internal control weaknesses or the application of accounting principles to proposed transactions), if any;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(o)</FONT></DT><DD><FONT SIZE=2>assess
with management the Corporation's material risk exposures and the Corporation's actions to monitor and control such exposures;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(p)</FONT></DT><DD><FONT SIZE=2>review
and approve the hiring of partners, employees and former partners and employees of the present and any former Independent Auditor who were engaged on the Corporation's account
within the last three years prior to such hiring;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(q)</FONT></DT><DD><FONT SIZE=2>review
all material off-balance sheet transactions and the related accounting presentation and disclosure;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(r)</FONT></DT><DD><FONT SIZE=2>discuss
with the Independent Auditor the matters required to be discussed by the Statement of Auditing Standards No.&nbsp;54, 61, 89 and&nbsp;90 (and&nbsp;comparable generally
accepted auditing standards in Canada) and other applicable standards or requirements in effect from time to time relating to the conduct of the audit and quarterly review of the interim financial
results;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(s)</FONT></DT><DD><FONT SIZE=2>review
and assess this Audit Committee Charter annually and make recommendations to the Board for such changes to the Charter as the Committee shall consider necessary or desirable;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(t)</FONT></DT><DD><FONT SIZE=2>prepare
the Audit Committee report for inclusion in the Corporation's information circular/proxy statement, in the form and at the time required by the laws, rules and regulations of
applicable regulatory authorities;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(u)</FONT></DT><DD><FONT SIZE=2>review
and approve prior to release, all financial statements of the Corporation, together with MD&amp;As, earnings press releases and all other public disclosure documents of the
Corporation containing financial information or forecasts of the Corporation;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(v)</FONT></DT><DD><FONT SIZE=2>ensure
that adequate procedures are in place for the review of the Corporation's public disclosure of financial information extracted or derived from the Corporation's financial
statements other than the public disclosure documents referred to in (u), and periodically assess the adequacy of such procedures; </FONT></DD></DL>
</UL>
<P ALIGN="CENTER"><FONT SIZE=2>B-5</FONT></P>

<HR NOSHADE>
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<UL>
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<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(w)</FONT></DT><DD><FONT SIZE=2>establish
procedures for:
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>(i)</FONT></DT><DD><FONT SIZE=2>the
receipt, retention and treatment of complaints received by the Corporation regarding accounting, internal controls, and auditing matters; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(ii)</FONT></DT><DD><FONT SIZE=2>the
confidential, anonymous submission of complaints by employees of the Corporation of concerns regarding questionable accounting or auditing matters;
<BR><BR></FONT></DD></DL>
</DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(x)</FONT></DT><DD><FONT SIZE=2>review
with management and the Independent Auditor any issues raised by regulatory authorities having jurisdiction or governmental agencies, as well as any complaints received through
the Corporation's "whistleblowing" process or published reports which raise material issues regarding the Corporation's financial statements or accounting or auditing practices; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>(y)</FONT></DT><DD><FONT SIZE=2>perform
such other functions as requested or delegated by the Board from time to time or as required by the Corporation's articles and by-laws, applicable law or
applicable regulatory agencies.
<BR><BR></FONT></DD></DL>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>13.</FONT></DT><DD><FONT SIZE=2>Notwithstanding
the foregoing and subject to applicable law, the Committee shall not be responsible to plan or conduct internal or external audits or to determine that the
Corporation's financial statements are complete and accurate and are in accordance with generally accepted accounting principles as these are the responsibility of management, the Internal Auditors
and the Independent Auditor. This Charter has been established to assist in ensuring sound business practices within the Corporation and to ensure the Corporation's compliance with applicable laws or
regulations; however, nothing in this Charter is intended to expand applicable standards of liability under statutory and regulatory requirements for the directors of the Corporation or members of the
Committee. </FONT></DD></DL>
<P ALIGN="CENTER"><FONT SIZE=2>B-6</FONT></P>

<HR NOSHADE>
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<BR>
<P><br><A NAME="06TOR1342_2">QuickLinks</A><br></P><!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_bi1343_1">FORWARD-LOOKING STATEMENTS</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_bi1343_2">OVERVIEW</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_da1343_1">RECENT TRENDS IN THE AUTOMOTIVE INDUSTRY</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_da1343_2">OUR BUSINESS STRATEGY</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_da1343_3">OPERATING STRUCTURE AND PRINCIPLES</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_da1343_4">RECENT DEVELOPMENTS IN OUR BUSINESS</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_da1343_5">SPIN-OFF OF MI DEVELOPMENTS INC. AND MAGNA ENTERTAINMENT CORP.</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_dc1343_1">PRODUCT CAPABILITIES</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_dc1343_2">RESEARCH AND DEVELOPMENT</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_de1343_1">MANUFACTURING AND ENGINEERING</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_de1343_2">HUMAN RESOURCES</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_de1343_3">COMPETITION</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_de1343_4">SALES AND MARKETING</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_de1343_5">ENVIRONMENTAL MATTERS</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_de1343_6">INTELLECTUAL PROPERTY</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_de1343_7">RISK FACTORS</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_dk1343_1">SCHEDULE A PRINCIPAL SUBSIDIARIES</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_dm1343_1">SCHEDULE B AUDIT COMMITTEE CHARTER/MANDATE</A></FONT><BR>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-3
<SEQUENCE>3
<FILENAME>a2168885zex-3.htm
<DESCRIPTION>EXHIBIT 3 - CONSENT E&Y 06TOR1342 STAMP 6
<TEXT>
<HTML>
<HEAD>
</HEAD>
<BODY BGCOLOR="#FFFFFF" LINK=BLUE  VLINK=PURPLE>
<BR>
<FONT SIZE=3 ><A HREF="#06TOR1342_3">QuickLinks</A></FONT>
<font size=3> -- Click here to rapidly navigate through this document</font>
<!-- TOC_END -->
<P ALIGN="RIGHT"><FONT SIZE=2><B>Exhibit&nbsp;3</B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="fa1342_consent_of_independent_auditors"> </A>
<A NAME="toc_fa1342_1"> </A>
<BR></FONT><FONT SIZE=2><B>Consent of Independent Auditors    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We consent to the use of our report dated February&nbsp;26, 2006 on the consolidated financial statements of Magna International&nbsp;Inc. as at
December&nbsp;31, 2005 and 2004, and for each of the years in the three-year period ended December&nbsp;31, 2005, in connection with the Annual Report on Form&nbsp;40-F
of Magna International&nbsp;Inc. for the year ended December&nbsp;31, 2005. </FONT></P>

<P><FONT SIZE=2>Toronto,
Canada<BR>
March&nbsp;29, 2006 </FONT></P>

<P ALIGN="RIGHT"><FONT SIZE=2>/s/ </FONT> <FONT SIZE=2>ERNST&nbsp;&amp; YOUNG&nbsp;LLP</FONT><FONT SIZE=2><BR>
Chartered Accountants </FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<FONT SIZE=2><A HREF="#toc_fa1342_1">Consent of Independent Auditors</A></FONT><BR>
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>4
<FILENAME>a2168885zex-99_1.htm
<DESCRIPTION>EXHIBIT 99.1 - STAMPS 007-008
<TEXT>
<HTML>
<HEAD>
</HEAD>
<BODY BGCOLOR="#FFFFFF" LINK=BLUE  VLINK=PURPLE>
<BR>
<FONT SIZE=3 ><A HREF="#06TOR1342_4">QuickLinks</A></FONT>
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<P ALIGN="RIGHT"><FONT SIZE=2><B>Exhibit&nbsp;99.1</B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="ha1342_certification"> </A>
<A NAME="toc_ha1342_1"> </A>
<BR></FONT><FONT SIZE=2><B>CERTIFICATION    <BR>    </B></FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I, Donald J. Walker, Co-Chief Executive Officer, certify that: </FONT></P>

<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>1.</FONT></DT><DD><FONT SIZE=2>I
have reviewed this annual report on Form&nbsp;40-F of Magna International&nbsp;Inc. (the&nbsp;"issuer");
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>2.</FONT></DT><DD><FONT SIZE=2>Based
on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect to the period covered by this report;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>3.</FONT></DT><DD><FONT SIZE=2>Based
on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of
operations and cash flows of the issuer as of, and for, the periods presented in this report;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>4.</FONT></DT><DD><FONT SIZE=2>The
issuer's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as&nbsp;defined in Exchange Act
Rules&nbsp;13a-15(e) and&nbsp;15d-15(e)) for the issuer and have:
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>a)</FONT></DT><DD><FONT SIZE=2>Designed
such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating
to the issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>b)</FONT></DT><DD><FONT SIZE=2>Evaluated
the effectiveness of the issuer's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and
procedures as of the end of the period covered by this report based on such evaluation; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>c)</FONT></DT><DD><FONT SIZE=2>Disclosed
in this report any change in the issuer's internal control over financial reporting that occurred during the period covered by the annual report that has materially affected,
or is reasonably likely to materially affect, the issuer's internal control over financial reporting.
<BR><BR></FONT></DD></DL>
</DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>5.</FONT></DT><DD><FONT SIZE=2>The
issuer's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the issuer's auditors and the audit
committee of the issuer's board of directors (or&nbsp;persons performing the equivalent functions):
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>a)</FONT></DT><DD><FONT SIZE=2>All
significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the
issuer's ability to record, process, summarize and report financial information; and </FONT></DD></DL>
</DD></DL>
<HR NOSHADE>
<P style='page-break-before:always'></p>
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<UL>
<UL>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>b)</FONT></DT><DD><FONT SIZE=2>Any
fraud, whether or not material, that involves management or other employees who have a significant role in the issuer's internal control over financial reporting. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>Dated
as of March&nbsp;29, 2006. </FONT></P>

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&nbsp;</FONT></TD>
<TD WIDTH="50%"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>DONALD J. WALKER</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Donald J. Walker<BR>
Co-Chief Executive Officer</FONT></TD>
</TR>
</TABLE>
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<FONT SIZE=2><A HREF="#toc_ha1342_1">CERTIFICATION</A></FONT><BR>
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<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>5
<FILENAME>a2168885zex-99_2.htm
<DESCRIPTION>EXHIBIT 99.2 - STAMPS 009-010
<TEXT>
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<HEAD>
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<P ALIGN="RIGHT"><FONT SIZE=2><B>Exhibit&nbsp;99.2</B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="hc1342_certification"> </A>
<A NAME="toc_hc1342_1"> </A>
<BR></FONT><FONT SIZE=2><B>CERTIFICATION    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I, Siegfried Wolf, Co-Chief Executive Officer of Magna International&nbsp;Inc., certify that: </FONT></P>

<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>1.</FONT></DT><DD><FONT SIZE=2>I
have reviewed this annual report on Form&nbsp;40-F of Magna International&nbsp;Inc. (the&nbsp;"issuer");
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>2.</FONT></DT><DD><FONT SIZE=2>Based
on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect to the period covered by this report;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>3.</FONT></DT><DD><FONT SIZE=2>Based
on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of
operations and cash flows of the issuer as of, and for, the periods presented in this report;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>4.</FONT></DT><DD><FONT SIZE=2>The
issuer's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as&nbsp;defined in Exchange Act
Rules&nbsp;13a-15(e) and&nbsp;15d-15(e)) for the issuer and have:
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>a)</FONT></DT><DD><FONT SIZE=2>Designed
such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating
to the issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>b)</FONT></DT><DD><FONT SIZE=2>Evaluated
the effectiveness of the issuer's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and
procedures as of the end of the period covered by this report based on such evaluation; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>c)</FONT></DT><DD><FONT SIZE=2>Disclosed
in this report any change in the issuer's internal control over financial reporting that occurred during the period covered by the annual report that has materially affected,
or is reasonably likely to materially affect, the issuer's internal control over financial reporting.
<BR><BR></FONT></DD></DL>
</DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>5.</FONT></DT><DD><FONT SIZE=2>The
issuer's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the issuer's auditors and the audit
committee of the issuer's board of directors (or&nbsp;persons performing the equivalent functions):
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>a)</FONT></DT><DD><FONT SIZE=2>All
significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the
issuer's ability to record, process, summarize and report financial information; and </FONT></DD></DL>
</DD></DL>
<HR NOSHADE>
<P style='page-break-before:always'></p>
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<UL>
<UL>
</UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>b)</FONT></DT><DD><FONT SIZE=2>Any
fraud, whether or not material, that involves management or other employees who have a significant role in the issuer's internal control over financial reporting. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>Dated
as of March&nbsp;29, 2006. </FONT></P>

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<TD WIDTH="50%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="50%"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>SIEGFRIED WOLF</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Siegfried Wolf<BR>
Co-Chief Executive Officer</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<BR>
<P><br><A NAME="06TOR1342_5">QuickLinks</A><br></P><!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_hc1342_1">CERTIFICATION</A></FONT><BR>
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<DOCUMENT>
<TYPE>EX-99.3
<SEQUENCE>6
<FILENAME>a2168885zex-99_3.htm
<DESCRIPTION>EXHIBIT 99.3 - STAMPS 011-012
<TEXT>
<HTML>
<HEAD>
</HEAD>
<BODY BGCOLOR="#FFFFFF" LINK=BLUE  VLINK=PURPLE>
<BR>
<FONT SIZE=3 ><A HREF="#06TOR1342_6">QuickLinks</A></FONT>
<font size=3> -- Click here to rapidly navigate through this document</font>
<!-- TOC_END -->
<P ALIGN="RIGHT"><FONT SIZE=2><B>Exhibit&nbsp;99.3</B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="he1342_certification"> </A>
<A NAME="toc_he1342_1"> </A>
<BR></FONT><FONT SIZE=2><B>CERTIFICATION    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I, Vincent J. Galifi, the Executive Vice-President and Chief Financial Officer, certify that: </FONT></P>

<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>1.</FONT></DT><DD><FONT SIZE=2>I
have reviewed this annual report on Form&nbsp;40-F of Magna International&nbsp;Inc. (the&nbsp;issuer");
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>2.</FONT></DT><DD><FONT SIZE=2>Based
on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect to the period covered by this report;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>3.</FONT></DT><DD><FONT SIZE=2>Based
on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of
operations and cash flows of the issuer as of, and for, the periods presented in this report;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>4.</FONT></DT><DD><FONT SIZE=2>The
issuer's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as&nbsp;defined in Exchange Act
Rules&nbsp;13a-15(e) and&nbsp;15d-15(e)) for the issuer and have:
<BR><BR></FONT>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>a)</FONT></DT><DD><FONT SIZE=2>Designed
such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating
to the issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>b)</FONT></DT><DD><FONT SIZE=2>Evaluated
the effectiveness of the issuer's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and
procedures as of the end of the period covered by this report based on such evaluation; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>c)</FONT></DT><DD><FONT SIZE=2>Disclosed
in this report any change in the issuer's internal control over financial reporting that occurred during the period covered by the annual report that has materially affected,
or is reasonably likely to materially affect, the issuer's internal control over financial reporting.
<BR><BR></FONT></DD></DL>
</DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>5.</FONT></DT><DD><FONT SIZE=2>The
issuer's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the issuer's auditors and the audit
committee of the issuer's board of directors (or&nbsp;persons performing the equivalent functions): </FONT></DD></DL>
<HR NOSHADE>
<P style='page-break-before:always'></p>
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<UL>
<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>a)</FONT></DT><DD><FONT SIZE=2>All
significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the
issuer's ability to record, process, summarize and report financial information; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>b)</FONT></DT><DD><FONT SIZE=2>Any
fraud, whether or not material, that involves management or other employees who have a significant role in the issuer's internal control over financial reporting. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>Dated
as of March&nbsp;29, 2006. </FONT></P>

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&nbsp;</FONT></TD>
<TD WIDTH="50%"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>VINCENT J. GALIFI</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Vincent J. Galifi<BR>
Executive Vice-President and<BR>
Chief Financial Officer</FONT></TD>
</TR>
</TABLE>
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<HR NOSHADE>
<P style='page-break-before:always'></p>
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<BR>
<P><br><A NAME="06TOR1342_6">QuickLinks</A><br></P><!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_he1342_1">CERTIFICATION</A></FONT><BR>
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<DOCUMENT>
<TYPE>EX-99.4
<SEQUENCE>7
<FILENAME>a2168885zex-99_4.htm
<DESCRIPTION>EXHIBIT 99.4 - STAMP 013
<TEXT>
<HTML>
<HEAD>
</HEAD>
<BODY BGCOLOR="#FFFFFF" LINK=BLUE  VLINK=PURPLE>
<BR>
<FONT SIZE=3 ><A HREF="#06TOR1342_7">QuickLinks</A></FONT>
<font size=3> -- Click here to rapidly navigate through this document</font>
<!-- TOC_END -->
<P ALIGN="RIGHT"><FONT SIZE=2><B>Exhibit&nbsp;99.4</B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="hg1342_certificate_of_principal_execu__cer04997"> </A>
<A NAME="toc_hg1342_1"> </A>
<BR></FONT><FONT SIZE=2><B>CERTIFICATE OF PRINCIPAL EXECUTIVE OFFICER<BR>  PURSUANT TO<BR>  18&nbsp;U.S.C. SECTION&nbsp;1350<BR>  AS ADOPTED PURSUANT TO SECTION&nbsp;906 OF<BR>  THE SARBANES-OXLEY ACT OF&nbsp;2002    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I, Donald J. Walker, Co-Chief Executive Officer of Magna International&nbsp;Inc. (the&nbsp;"Company"), certify that: </FONT></P>

<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>1.</FONT></DT><DD><FONT SIZE=2>the
Annual Report on Form&nbsp;40-F of the Company dated March&nbsp;29, 2006 for the fiscal year ending December&nbsp;31, 2005 (the&nbsp;"Report") fully complies
with the requirements of Sections&nbsp;13(a) and&nbsp;15(d) of the Securities Exchange Act of 1934; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>2.</FONT></DT><DD><FONT SIZE=2>the
information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. </FONT></DD></DL>

<P><FONT SIZE=2>Dated
as of March&nbsp;29, 2006. </FONT></P>

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<TD WIDTH="50%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="50%"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>DONALD J. WALKER</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Donald J. Walker<BR>
Co-Chief Executive Officer</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
signed original of this written statement required by Section&nbsp;906 has been provided to the Company and will be retained by the Company and furnished to the Securities and
Exchange Commission or its staff upon request. </FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<FONT SIZE=2><A HREF="#toc_hg1342_1">CERTIFICATE OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</A></FONT><BR>
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<DOCUMENT>
<TYPE>EX-99.5
<SEQUENCE>8
<FILENAME>a2168885zex-99_5.htm
<DESCRIPTION>EXHIBIT 99.5 - STAMP 014
<TEXT>
<HTML>
<HEAD>
</HEAD>
<BODY BGCOLOR="#FFFFFF" LINK=BLUE  VLINK=PURPLE>
<BR>
<FONT SIZE=3 ><A HREF="#06TOR1342_8">QuickLinks</A></FONT>
<font size=3> -- Click here to rapidly navigate through this document</font>
<!-- TOC_END -->
<P ALIGN="RIGHT"><FONT SIZE=2><B>Exhibit&nbsp;99.5</B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="hi1342_certificate_of_principal_execu__cer04997"> </A>
<A NAME="toc_hi1342_1"> </A>
<BR></FONT><FONT SIZE=2><B>CERTIFICATE OF PRINCIPAL EXECUTIVE OFFICER<BR>  PURSUANT TO<BR>  18&nbsp;U.S.C. SECTION&nbsp;1350<BR>  AS ADOPTED PURSUANT TO SECTION&nbsp;906 OF<BR>  THE SARBANES-OXLEY ACT OF&nbsp;2002    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I, Siegfried Wolf, the Co-Chief Executive Officer of Magna International&nbsp;Inc. (the&nbsp;"Company"), certify that: </FONT></P>

<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>1.</FONT></DT><DD><FONT SIZE=2>the
Annual Report on Form&nbsp;40-F of the Company dated March&nbsp;29, 2006 for the fiscal year ending December&nbsp;31, 2005 (the&nbsp;"Report") fully complies
with the requirements of Sections&nbsp;13(a) and&nbsp;15(d) of the Securities Exchange Act of 1934; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>2.</FONT></DT><DD><FONT SIZE=2>the
information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. </FONT></DD></DL>

<P><FONT SIZE=2>Dated
as of March&nbsp;29, 2006. </FONT></P>

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<TD WIDTH="50%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="50%"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>SIEGFRIED WOLF</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Siegfried Wolf<BR>
Co-Chief Executive Officer</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
signed original of this written statement required by Section&nbsp;906 has been provided to the Company and will be retained by the Company and furnished to the Securities and
Exchange Commission or its staff upon request. </FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<FONT SIZE=2><A HREF="#toc_hi1342_1">CERTIFICATE OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</A></FONT><BR>
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<DOCUMENT>
<TYPE>EX-99.6
<SEQUENCE>9
<FILENAME>a2168885zex-99_6.htm
<DESCRIPTION>EXHIBIT 99.6 - STAMP 015
<TEXT>
<HTML>
<HEAD>
</HEAD>
<BODY BGCOLOR="#FFFFFF" LINK=BLUE  VLINK=PURPLE>
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<!-- TOC_END -->
<P ALIGN="RIGHT"><FONT SIZE=2><B>Exhibit&nbsp;99.6</B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="hk1342_certificate_of_principal_finan__cer04952"> </A>
<A NAME="toc_hk1342_1"> </A>
<BR></FONT><FONT SIZE=2><B>CERTIFICATE OF PRINCIPAL FINANCIAL OFFICER<BR>  PURSUANT TO<BR>  18&nbsp;U.S.C. SECTION&nbsp;1350<BR>  AS ADOPTED PURSUANT TO SECTION&nbsp;906 OF<BR>  THE SARBANES-OXLEY ACT OF&nbsp;2002    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I, Vincent J. Galifi, the Executive Vice-President and Chief Financial Officer of Magna International&nbsp;Inc. (the&nbsp;"Company"), certify
that: </FONT></P>

<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>1.</FONT></DT><DD><FONT SIZE=2>the
Annual Report on Form&nbsp;40-F of the Company dated March&nbsp;29, 2006 for the fiscal year ending December&nbsp;31, 2005 (the&nbsp;"Report") fully complies
with the requirements of Sections&nbsp;13(a) and&nbsp;15(d) of the Securities Exchange Act of 1934; and
<BR><BR></FONT></DD><DT style='margin-bottom:-11pt;'><FONT SIZE=2>2.</FONT></DT><DD><FONT SIZE=2>the
information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. </FONT></DD></DL>

<P><FONT SIZE=2>Dated
as of March&nbsp;29, 2006. </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="50%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="50%"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>VINCENT J. GALIFI</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE><FONT SIZE=2> Vincent J. Galifi<BR>
Executive Vice-President and<BR>
Chief Financial Officer</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
signed original of this written statement required by Section&nbsp;906 has been provided to the Company and will be retained by the Company and furnished to the Securities and
Exchange Commission or its staff upon request. </FONT></P>

<HR NOSHADE>
<P style='page-break-before:always'></p>
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<FONT SIZE=2><A HREF="#toc_hk1342_1">CERTIFICATE OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</A></FONT><BR>
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<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>10
<FILENAME>g760100.jpg
<DESCRIPTION>G760100.JPG
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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
