Magna Entertainment Corp. announces appointments of Interim Chief Executive Officer and Independent Director



    AURORA, ON, April 7 /CNW/ - Magna Entertainment Corp. ("MEC" or the
"Company") today announced that it has appointed Greg Rayburn as Interim Chief
Executive Officer of the Company, subject to the approval of the United States
Bankruptcy Court for the District of Delaware. MEC and certain of its
subsidiaries are currently subject to bankruptcy proceedings in the United
States under Chapter 11 of the United States Bankruptcy Court for the District
of Delaware. If approved, Mr. Rayburn will assume the customary
responsibilities of the Chief Executive Officer including leading MEC's
Chapter 11 restructuring activities and overseeing the sale of MEC's assets.
He will report directly to MEC's Board of Directors. The decision to appoint
Mr. Rayburn followed an extensive executive search process led by MEC's lead
director, William Menear. Mr. Rayburn is currently a senior managing director
and the practice leader of FTI Palladium Partners. He has more than 26 years
of experience advising companies and boards of directors in several in-court
and out-of-court restructurings and has previously served as CEO or CRO of
other troubled companies, including WorldCom, aaiPharma and Muzak Holdings
LLC. Frank Stronach, who has resigned his office as Chief Executive Officer of
the Company effective immediately, will retain his position as Chairman of the
Board of Directors.

    In addition, the Board of Directors also appointed Warren Mosler to serve
as an independent member of the Board of Directors. Mr. Mosler is the founder
and principal of AVM, L.P., a broker/dealer that provides advanced financial
services to large institutional accounts. Mr. Mosler is the President and
founder of Mosler Automotive which manufactures the MT900 sports car in
Riviera Beach, Florida. MEC's Board of Directors is in the ongoing process of
searching for additional, qualified independent directors to strengthen MEC's
Board.

    Mr. Rayburn stated, "I look forward to this opportunity and to working
with the MEC team."

    ABOUT MEC

    MEC, North America's largest owner and operator of horse racetracks,
based on revenue, develops, owns and operates horse racetracks and related
pari-mutuel wagering operations, including off-track betting facilities. MEC
also develops, owns and operates casinos in conjunction with its racetracks
where permitted by law. MEC owns and operates AmTote International, Inc., a
provider of totalisator services to the pari-mutuel industry, XpressBet(R), a
national Internet and telephone account wagering system, as well as
MagnaBet(TM) internationally. Pursuant to joint ventures, MEC has a fifty
percent interest in HorseRacing TV(R), a 24-hour horse racing television
network, and TrackNet Media Group LLC, a content management company formed for
distribution of the full breadth of MEC's horse racing content.

    This press release contains "forward-looking statements" within the
meaning of applicable securities legislation, including Section 27A of the
United States Securities Act of 1933, as amended (the "Securities Act"), and
Section 21E of the United States Securities Exchange Act of 1934, as amended
(the "Exchange Act") and forward-looking information as defined in the
Securities Act (Ontario) (collectively referred to as "forward-looking
statements"). These forward-looking statements are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995 and
the Securities Act (Ontario). Forward-looking statements should not be read as
guarantees of future performance or results, and will not necessarily be
accurate indications of whether or the times at or by which such performance
or results will be achieved. Undue reliance should not be placed on such
statements. Forward-looking statements are based on information available at
the time and/or management's good faith assumptions and analyses made in light
of the Company's perception of historical trends, current conditions and
expected future developments, as well as other factors we believe are
appropriate in the circumstances and are subject to known and unknown risks,
uncertainties and other unpredictable factors, many of which are beyond the
Company's control, that could cause actual events or results to differ
materially from such forward-looking statements. Important factors that could
cause actual results to differ materially from the Company's forward-looking
statements include, but may not be limited to, the Company's ability to obtain
court approval with respect to its motions in the Chapter 11 proceedings; the
ability of the Company and its subsidiaries to prosecute, develop and
consummate a plan of reorganization with respect to the Chapter 11
proceedings; risks associated with third party motions in the Chapter 11
proceedings, which may interfere with the Company's ability to develop and
consummate a plan of reorganization; the potential adverse effects of the
Chapter 11 proceedings on the Company's liquidity or results of operations;
and material adverse changes in: general economic conditions; the popularity
of racing and other gaming activities as recreational activities; the
regulatory environment affecting the horse racing and gaming industries; the
Company's ability to obtain or maintain government and other regulatory
approvals necessary or desirable to proceed with proposed real estate
developments; increased regulation affecting certain of the Company's
non-racetrack operations, such as broadcasting ventures; and the Company's
ability to develop, execute or finance the Company's strategies and plans
within expected timelines or budgets. In drawing conclusions set out in our
forward-looking statements above, we have assumed, among other things: the
ability of the Company to obtain court approval with respect to its motions in
the Chapter 11 proceedings; the ability of the Company and its subsidiaries to
prosecute, develop and consummate a plan of reorganization with respect to the
Chapter 11 proceedings; that the Company will be able to manage the risks
associated with third party motions in the Chapter 11 proceedings and they
will not interfere with the Company's ability to develop and consummate a plan
of reorganization; the Company will be able to adequately manage any potential
adverse effects of the Chapter 11 proceedings on MEC's liquidity or results of
operations.

    Forward-looking statements speak only as of the date the statements were
made. We assume no obligation to update forward-looking statements to reflect
actual results, changes in assumptions or changes in other factors affecting
forward-looking statements. If we update one or more forward-looking
statements, no inference should be drawn that we will make additional updates
with respect thereto or with respect to other forward-looking statements.

    

SOURCE: Magna Entertainment Corp.

For further information:

For further information: Blake Tohana, Executive Vice-President and
Chief Financial Officer, Magna Entertainment Corp., 337 Magna Drive, Aurora,
ON, L4G 7K1, Tel: (905) 726-7493, www.magnaent.com

Organization Profile

MAGNA ENTERTAINMENT CORP.

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