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Gulfstream Park Financing Amended

AURORA, Ontario – (PRESS RELEASE) -- Magna Entertainment Corp. ("MEC") (NASDAQ: MECA)., owner of Gulfstream Park, today announced that Gulfstream Park Racing Association, Inc. ("Gulfstream") has agreed to amend its existing project financing facility with MID Islandi, sf. (the "Lender") by adding a new tranche of up to $25.75 million (plus Lender costs and capitalized interest) to fund the design and construction of a slot facility to be located in the existing Gulfstream Park clubhouse building, as well as related capital expenditures and start-up costs, including the acquisition and installation of 500 slot machines.

Blake Tohana, MEC's Executive Vice-President and Chief Financial Officer, stated, "This new financing will fund the installation of 500 slot machines at Gulfstream Park, which will enhance Gulfstream's capability as a year-round entertainment destination center. We expect to open the Gulfstream Park slot facility in October of this year."

The new Gulfstream financing has a five-year term and, consistent with the existing facility, bears interest at a fixed rate of 10.5% per annum, compounded semi-annually. Prior to January 1, 2007, interest on the new tranche will be capitalized. Beginning January 1, 2007, the new tranche provides for blended payments of principal and interest based on a 25-year amortization period commencing on that date. Advances relating to the slot facility will be made available by way of progress draws and there will be no prepayment penalty associated with the new tranche. The Gulfstream project financing facility will be further amended to introduce a mandatory annual cash flow sweep of not less than 75% of Gulfstream's total excess cash flow, after permitted capital expenditures and debt service, to be used to repay the additional principal amount being made available under the new tranche. Gulfstream will pay the Lender a fee of $257,500 (1% of the amount of the new tranche) as consideration for the amendments.

Consideration of the amendment to the Gulfstream project financing facility by MEC was supervised by the Special Committee of MEC's board of directors consisting of Jerry D. Campbell (Chairman), Louis E. Lataif, William J. Menear and Gino Roncelli. The approval of MEC's board followed a favourable recommendation of the Special Committee.

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