Magna International Inc.

On September 21, 1999, Magna International Inc. completed the sale of Cdn.$165 million of 8.65 per cent Series A Preferred Securities in Canada and US$170 million of 8.875 per cent Series B Preferred Securities/ Cumulative Quarterly Income Preferred Securities (QUIPS) in the United States. The Series A Preferred Securities and the Series B Preferred Securities are two separate series of unsecured subordinated debentures of Magna due September 2049 with interest at the specified rates being payable quarterly in arrears subject to Magna’s right to defer, at any time and from time to time, payments of interest for a maximum period of 20 consecutive quarters.

The issue was underwritten in Canada by an underwriting syndicate led by CIBC World Markets, Merrill Lynch Canada Inc. and Nesbitt Burns Inc. and in the United States by an underwriting syndicate led by Goldman, Sachs & Co. and Merrill Lynch.

Magna relied on its internal legal advisers, Brian Colburn and Bassem Shakeel and Osler, Hoskin & Harcourt LLP in Canada and Sidley & Austin in the United States. The Osler team consisted of partners Jean Fraser and Robert Lando and associates Sandra Adams and Jonathan Lundy. Andy McGuffin provided tax advice. The Canadian underwriting syndicate was advised by partner Francesca Guolo and associate Georges Dube of Goodman Phillips & Vineberg. The U.S. underwriting syndicate was advised by Cleary, Gottlieb, Steen & Hamilton in New York.