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Magna Entertainment Amends, Extends Financing Agreements

AURORA, Ontario – (PRESS RELEASE) -- Magna Entertainment Corp. ("MEC") (NASDAQ: MECA). today announced that it has amended and extended two financing agreements.

The first amendment is to MEC's senior secured revolving bank credit facility with Bank of Montreal ("BMO"), which amends the credit agreement made as of July 22, 2005 (the "BMO Loan"). The BMO Loan maturity date has been extended from July 31, 2006 to November 6, 2006. The maximum permitted borrowings for general corporate purposes under the BMO Loan have been increased to $50 million. The BMO Loan was also amended to provide for a further increase of $14 million to fund the exercise by MEC of its option to acquire the remaining 70% of AmTote International, Inc. The BMO Loan also requires that MEC repay $39 million upon closing of the sale of The Meadows, after repaying the MID Bridge Loan (as defined below). In connection with the amendments, MEC will pay to BMO a commitment fee of $240,000 (0.375% of the amount of the BMO Loan).

The second amendment is to MEC's bridge loan with MID Islandi, sf., which amends the bridge loan agreement made as of July 22, 2005, as supplemented and amended by a bridge loan consent and waiver agreement made as of October 14, 2005, and as amended by a first amending agreement made as of February 1, 2006 (the "MID Bridge Loan"). The MID Bridge Loan maturity date has been extended from August 31, 2006 to December 5, 2006. Also, MID Islandi, sf. provided its consent to MEC's amended share purchase agreement and ownership transfer of The Meadows and MEC exercising its option to acquire the remaining 70% of AmTote International, Inc. In connection with the amendments, MEC will pay the Lender an extension fee of $500,000 (0.5% of the amount of the MID Bridge Loan), plus an additional fee of $500,000 if MEC does not complete its sale of The Meadows by November 6, 2006.

Consideration of the amendment to the MID Bridge Loan 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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