Magna Entertainment Corp. announces sale of San Luis Rey Downs



    AURORA, ON, June 7 /CNW/ - Magna Entertainment Corp. ("MEC") (NASDAQ:  
MECA; TSX: MEC.A) 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.

    MEC, North America's largest owner and operator of horse racetracks,
based on revenue, acquires, 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(TM), 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
the expected impact the sale of the San Luis Rey Downs will have on our
financial condition. 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 our 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. Factors that could cause actual results to differ
materially from our forward-looking statements include, but may not be limited
to, 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, and
our ability to develop, execute or finance our 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
there will not be any material adverse changes in general economic conditions,
the popularity of horse racing and other gaming activities, the regulatory
environment, and 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.





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

Organization Profile

MAGNA ENTERTAINMENT CORP.

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