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Magna Entertainment Corp. sells San Luis Rey Downs

7 June 2007

AURORA, Ontario -- (PRESS RELEASE) -- Magna Entertainment Corp. ("MEC") (NASDAQ: MECA) announced today that it has agreed to sell San Luis Rey Downs, a training center located on approximately 205 acres in Bonsall, California (approximately 40 miles from San Diego), to a subsidiary of MI Developments Inc. ("MID"), its parent company, in return for cash consideration of $24 million. At April 30, 2007, the net book value of the real estate property and other fixed assets of San Luis Rey Downs was $6.2 million.

As the purchaser will need time to obtain the necessary entitlements and other approvals to develop the property, it has agreed to lease the property to a subsidiary of MEC for a three-year period. The triple-net lease provides for a nominal annual rent and is terminable at any time by either party on four months' notice.

For many years, San Luis Rey Downs has served as a training center for horses that run primarily at non-MEC racetracks in Southern California. Over the period of our ownership, we have offered other racetracks and industry stakeholders the opportunity to participate with us in the ownership and financial burden of providing the facility for use by the entire industry. We have been unable to consummate such a transaction and accordingly, the facility was designated non-core to our operations and has been sold.

MEC's consideration of the real estate transactions was supervised by the Special Committee of MEC's board of directors, consisting of Jerry D. Campbell (Chairman), Jennifer Jackson and William J. Menear. The transactions were approved by MEC's board after a favorable recommendation of the Special Committee.

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