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The steady stagnation-point flow and heat transfer of a viscous, incompressible and heat generating/absorbing fluid over a shrinking sheet in the presence of a non-uniform heat source/sink is considered. The system of partial differential equations was transformed to a system of ordinary differential equations, which was solved numerically. Numerical results were obtained for the skin friction coefficient, the surface temperature as well as the velocity and temperature profiles for some values of the governing parameters. The study reveals that the range of velocity ratio parameter for which the solution exists increases as the magnetic field increase.