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Magna Entertainment amends financing

AURORA, Ontario – (PRESS RELEASE) -- Magna Entertainment Corp. ("MEC") (NASDAQ: MECA) today announced that it has amended two financing agreements in connection with MEC's current expectation that the closing of The Meadows sale transaction and collection of its $175.0 million note will occur by November 14, 2006.

The first amendment was to MEC's senior secured revolving bank credit facility with Bank of Montreal. MEC has amended the credit agreement made as of July 22, 2005, as amended, by extending the maturity date to November 28, 2006.

The second amendment was to MEC's bridge loan agreement with a subsidiary of MI Developments Inc., made as of July 22, 2005, as supplemented and amended (the "MID Bridge Loan"). The MID Bridge Loan has been amended to extend the deadline for closing The Meadows sale transaction to November 17, 2006. This deadline is used as a trigger for event of default provisions and payment of an additional $500,000 fee to the lender, which is also payable under certain other circumstances.

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 and William J. Menear.

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

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