Supplemental Disclosure of Magna

Introduction

On July 8, 2010, Magna International Inc. filed a substantial supplement to its management information circular for the special meeting of shareholders that originally had been scheduled for June 28, 2010 to consider a reorganization of Magna that would result in, among other things, the collapse of Magna's dual class capital structure.

The supplement was filed as a result of a decision of the Ontario Securities Commission (see our June 30, 2010 Update - "Magna - The OSC Decision") that concluded that Magna's original circular did not provide the disclosure necessary for shareholders to be able to make an informed decision when voting on the reorganization in circumstances where neither Magna's board nor its special committee had made any recommendation as to how shareholders should vote. The OSC required that shareholders be provided with substantially the same information and analysis that the special committee received in considering and addressing