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Magna to Sell Palm Beach Property

AURORA, Ontario – (PRESS RELEASE) -- Magna Entertainment Corp. ("MEC") (NASDAQ: MECA) today announced that it has entered into an agreement under which it will sell approximately 157 acres of its excess real estate located in Palm Beach County, Florida to Toll Bros, Inc., a Pennsylvania real estate development company. The proposed sale is subject to the completion of due diligence by February 28, 2006 and a closing by March 30, 2006. Under the terms of the agreement, Toll Bros. will pay to MEC aggregate consideration of $51 million in cash.

"This transaction is the next step in our recapitalization plan to sell certain non-core assets, reduce debt and strengthen our balance sheet. We will continue to work towards our goal of selling further non-strategic real estate and other assets, to maximize realizable value, and to position MEC to attain sustainable operating profits and exploit future strategic growth opportunities. Toll Bros. is a premier builder of luxury homes and their high standards and development capabilities will result in a first class development on the land adjacent to our Palm Meadows Training Center," stated W. Thomas Hodgson, President and Chief Executive Officer of MEC.

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