Magna Entertainment Corp. Announces Resignation of Director



    AURORA, ON, Jan. 26 /CNW/ - Magna Entertainment Corp. ("MEC" or "the
Company") (NASDAQ:   MECA; TSX: MEC.A) today announced that Charlie J. Williams
has stepped down as a director of MEC. Mr. Williams informed MEC that, "I have
greatly enjoyed my time as a director of MEC. However, in the current
environment there are other business matters unrelated to MEC that require all
of my time and attention. I will always maintain a strong interest in MEC and
a wish that it, and horse racing generally, will have a bright future."

    Frank Stronach, Chairman and Chief Executive Officer of MEC, stated: "On
behalf of everyone at MEC, I would like to thank Charlie for his dedicated
service. His keen ability for strategic thinking and fresh point of view were
invaluable to MEC's Board of Directors. Charlie has our gratitude and wishes
for success in all his future endeavors."

    Mr. William's position on the Audit Committee will be filled by Frank
Vasilkioti effective immediately.

    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) and include, among others, statements regarding
expected future compliance with Nasdaq Marketplace Rule 4350(d) and other
matters that are not historical facts.

    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 risk that one or more of
reorganization transactions contemplated by the November 26, 2008 transaction
agreement (the "Transaction Agreement") between MEC, MI Developments, Inc.
("MID"), MEC's controlling shareholder, and certain entities affiliated with
MEC's Chairman and Chief Executive Officer, Frank Stronach, may, for various
reasons, not proceed, the terms of any reorganization transaction may differ
from those currently contemplated by the Transaction Agreement, the MID
shareholders failing to approve the reorganization proposal, an inability to
obtain regulatory approval from securities and other regulators in connection
with proposed reorganization matters that are intended to result in the
issuance, registration and listing of shares of the Company's capital stock,
the possible termination of the Transaction Agreement for any reason, the
acceleration of the maturity dates and repayment deadlines under the December,
2008 loan agreement (the "New Loan") between MEC as borrower, certain
subsidiaries of MEC as guarantors and a wholly owned subsidiary of MID (the
"MID Lender") as lender, a bridge loan (the "Bridge Loan") with the MID Lender
and two project financing facilities with the MID Lender, a failure by the
Company to fully retire its subordinated notes by December 14, 2009 as
contemplated by the Transaction Agreement, a failure by the Company to
negotiate and close, on acceptable terms, asset sale transactions (including
potential core asset sales), 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,
that we will continue with our efforts to implement our September 12, 2007
adopted plan to eliminate the Company's debt, although not on the originally
contemplated time schedule, negotiate and close, on acceptable terms, one or
more core asset sale transactions, comply with the terms of and/or obtain
waivers or other concessions from our lenders and refinance or repay on
maturity our existing financing arrangements (including a senior secured
revolving credit facility with a Canadian chartered bank, the New Loan and the
Bridge Loan), possibly obtain additional financing on acceptable terms to fund
our ongoing operations and there will not be any material further
deterioration in general economic conditions or any further significant
decline in the popularity of horse racing and other gaming activities beyond
that which has already occurred in the current economic downturn; nor any
material adverse changes in weather and other environmental conditions at our
facilities, the regulatory environment or our ability to develop, execute or
finance our strategies and plans as anticipated.

    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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