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Magna to purchase roof systems business from Porsche

AURORA, ON - Magna International Inc. announced today that it has signed an agreement with Dr. Ing. h.c. F. Porsche AG pursuant to which Magna will acquire CTS Fahrzeug-Dachsysteme GmbH, Bietigheim-Bissingen ("CTS"), based in Germany. CTS is one of the world's leading manufacturers of roof systems for the automotive industry.

The purchase price is approximately euro 170 million and will be satisfied in cash. Closing of the transaction is subject to obtaining all necessary regulatory approvals.

Siegfried Wolf, co-Chief Executive Officer of Magna, stated: "CTS is one of the technology leaders in roof systems, a product area that we see as having good growth potential. Together with our current capabilities, we intend to leverage this technology to grow in roof systems both by broadening the current CTS customer base and by expanding geographically."

Dr. Wendelin Wiedeking, Porsche AG CEO, stated: "Both partners will benefit from this decision. Porsche can concentrate fully on its core competencies such as development, production and sales of complete vehicles, while with Magna, CTS now has a partner which allows potential for new growth. As roof systems are particularly important for us, the owner change ensures that Porsche will continue to be able to obtain the relevant top-quality systems."