Linamar and McLaren Performance Technologies—revised letter of intent

Automotive Industries, July, 2003

Linamar Corp. and McLaren Performance Technologies Inc. have entered into a revised, non-binding letter of intent under which Linamar proposes to acquire by merger all of the issued and outstanding shares of McLaren Performance common stock. The initial non-binding letter of intent dated March 26, 2003, and amended April 9, 2003, contemplated payment to McLaren Performance stockholders of $1.03 per share of McLaren Performance common stock held.

After conducting an extensive due diligence investigation, Linamar notified McLaren Performance of its unwillingness to proceed with the transactions as contemplated by the initial non-binding letter of intent.

Upon consideration and subsequent negotiations, the parties have entered into a revised non-binding letter of intent, which contemplates that each share of McLaren Performance common stock outstanding as of the closing date of the merger would be converted into the right to receive $.8875 in cash.