C-MAC Industries Inc. Reaches an Agreement to AcquireInvotronics Mfg., a Unit of Magna...

Business Editors

MONTREAL--(BUSINESS WIRE)--July 26, 2000

C-MAC Industries Inc.(TSE:CMS.), a leader in the manufacture of fully integrated electronic systems and solutions announced today that is has reached an agreement to acquire Invotronics Mfg., subject to regulatory approval.

Invotronics Mfg., a unit of Magna International Inc., designs, engineers and manufactures electronic body controllers, electromechanical systems and intelligent switches to the automotive industry. C-MAC and Magna believe that this transaction will form the basis of a strong foundation for future cooperation.

"This acquisition represents a key milestone in C-MAC's automotive strategy and is timed to take advantage of the expansion of electronic products in the automotive sector, nor dissimilar to what we have experienced in the communications market in the past few years", said Dennis Wood, Chairman and Chief Executive officer of C-MAC. "Through our relationship with Magna, with whom we share a complementary culture and philosophy, we will position ourselves to capitalize on new opportunities".

Donald Walker, President and Chief Executive Officer of Magna said: "This divestiture of Invotronics to C-MAC is important to Magna as we expand our market based on our core competencies, with reliance on our strategic partners to support our other needs in providing integrated solutions. C-MAC will provide Magna with advanced electronics design and manufacturing expertise that Magna will utilize in developing and marketing total integrated solutions to our OEM customers."

ABOUT C-MAC

C-MAC provides a comprehensive portfolio of electronic manufacturing services and solutions. C-MAC focuses on complex, high-margin products and services, ranging from components to full system assembly and test as well as design and supply chain management services. C-MAC primarily serves the rapidly growing global communications equipment market. In addition, C-MAC provides solutions for the automotive electronics, aerospace and instrumentation markets. C-MAC headquartered in Montreal (Quebec, Canada), employs more than 7,300 employees and operates 44 manufacturing facilities located in Belgium, Canada, China, France, Germany, India, Mexico, the United Kingdom and the United States. C-MAC's manufacturing operations are supported by six strategically located design centers in North America and Europe. C-MAC (CMS) stock is traded on The Toronto Stock Exchange. For addition information, visit our web site at http://wwww.cmac.com

Certain statements contained in this press release regarding C-MAC's future operating results or performance or business prospects and any other statements not constituting historical facts are "forward-looking statements" subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect only C-MAC's current beliefs and specific assumptions with respect to future business decisions and results are based on information currently available to C-MAC. Accordingly, these statements are subject to risks, uncertainties and contingencies which could cause C-MAC's actual operating results, performance or business prospects to differ from those expressed in, or implied by, these statements.