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Magna Entertainment to sell racetracks

6 September 2007

AURORA, Ontario -- (PRESS RELEASE) -- Magna Entertainment Corp. ("MEC") (NASDAQ: MECA) today announced that, consistent with its previously announced strategic review of assets and operations, it plans to sell two of its racetrack operations: Thistledown, a thoroughbred racetrack located near Cleveland, Ohio, and its interest in Portland Meadows, a thoroughbred racetrack located in Portland, Oregon.

Frank Stronach, MEC's Chairman and Interim Chief Executive Officer, remarked, "Although MEC remains strongly committed to the racing industry, the fact remains that Thistledown and Portland Meadows are confronted with very difficult operational and regulatory challenges. Furthermore, MEC is very much committed to continuing to sell assets and to strengthening its balance sheet. This has led to MEC's decision to immediately pursue the sale of these unprofitable racetracks."

MEC acquired Thistledown in November 1999. Since acquiring Thistledown, MEC has pursued alternative gaming initiatives for the racetrack but has been unsuccessful to date. The most recent initiative was defeated in a state referendum on November 7, 2006. For the year ended December 31, 2006, Thistledown incurred a pre-tax loss of $4.5 million, which included $3.1 million of costs related to the state referendum.

MEC began operating Portland Meadows in July 2001. MEC also operates 14 off-track betting locations in Oregon related to its operation of Portland Meadows. Last year, MEC obtained a ruling from the Oregon Racing Commission to allow the installation and operation of Instant Racing machines at Portland Meadows. In June 2007, this ruling was revoked at the request of the state's attorney general. MEC was very disappointed with this result and plans to sell its interest in Portland Meadows and related off-track betting locations. For the year ended December 31, 2006, Portland Meadows incurred a pre-tax loss of $0.1 million.

MEC intends to work with the local horsemen groups and regulatory bodies to pursue and execute an orderly sale of these properties.

MEC expects to provide a further update, within the next two weeks, after the completion of the strategic review by Greenbrook Capital Partners Inc. and its presentation to the Board of Directors.

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