Gulfstream Park approved

16 November 2006

AURORA, Ontario – (PRESS RELEASE) -- Magna Entertainment Corp. ("MEC") (NASDAQ: MECA) and Forest City Enterprises, Inc. (NYSE: FCEA) today announced that MEC and Forest City have received final approval from the city of Hallandale Beach, Florida for the development of The Village at Gulfstream Park, paving the way for a planned Spring 2007 groundbreaking for Phase 1 of the 60-acre, master-planned lifestyle destination.

The Village at Gulfstream Park, to be built around MEC's premier thoroughbred racetrack, will offer world-class fashion and home accessory shops, destination retailers, signature restaurants, outdoor cafes, unique entertainment options and an appealing residential live/work environment. The first phase will include 375,000 square feet of lifestyle retail, featuring 70 upscale shops and specialty stores and 70,000 square feet of office space. It is expected to be up and running in Fall 2008.

The Village at Gulfstream Park, to be built over 15 years, calls for 1,500 condos, 750,000 square feet of retail space, 140,000 square feet of office space, a 500-room hotel and a 2,500-seat cinema. The project will involve the construction of 225 affordable/workforce-housing units both on the site itself and in neighborhoods within the city. When complete, it is expected to generate more than $22 million in taxes and create more than 2,800 permanent jobs.

"With the successful approval of the entitlements we look forward to the many benefits of the combination of Gulfstream's extraordinary location and entertainment experience with the capabilities of Forest City, one of the pre-eminent development companies in the United States, which puts us in a position to create a compelling retail-entertainment destination for virtually every type of consumer," said Frank Stronach, Chairman of MEC.

The Village at Gulfstream Park is located in the heart of the Miami, Dade, Broward, and West Palm Beach area, one of the largest and fastest growing regions in the United States. The City of Hallandale Beach, is conveniently situated along US1, the premier commercial corridor of all of South Florida and near I-95, the major north/south interstate along the Eastern United States.

"Forest City is extremely pleased to have received final project approval for the project. Given the unique integration with MEC's premier thoroughbred horse racing facility, The Village will be one of the highest profile, most exciting and vibrant developments of its kind in the country," commented Brian Ratner, President of East Coast Development, Forest City. "Our vice president of retail leasing is in Europe right now talking with potential tenants to bring unique retailers to this location."

MEC, North America's number one owner and operator of horse racetracks, based on revenue, acquires, develops and operates horse racetracks and related pari-mutuel wagering operations, including off-track betting facilities. Additionally, MEC owns and operates XpressBet(TM), a national Internet and telephone account wagering system, and HorseRacing TV(TM), a 24-hour horse racing television network.

Forest City Enterprises, Inc. is an $8-billion, NYSE-listed real estate company headquartered in Cleveland, Ohio. The company is principally engaged in the ownership, development, acquisition management of commercial and residential real estate and land throughout the United States. The company's portfolio includes interests in properties in 25 states and the District of Columbia.