Magna Entertainment Corp. files first default status report



    AURORA, ON, April 7 /CNW/ - Magna Entertainment Corp. ("MEC" or the
"Company") (NASDAQ:   MECA; TSX: MEC.A) filed this news release as its first
bi-weekly default status report under National Policy 12-203 of the Canadian
Securities Administrators, pursuant to which MEC announced that it would not
be filing its Annual Report on Form 10-K for the fiscal year ended December
31, 2008, nor would it be filing quarterly reports on Form 10-Q, with the U.S.
Securities and Exchange Commission or the Canadian securities regulators
during the period it continues to operate its business as a debtor in
possession under the U.S. Bankruptcy Code. MEC reports that since announcing
the original notice of default on March 26, 2009, there have not been any
material changes to the information contained therein, nor any failure by MEC
to fulfill its intentions stated therein, and there are no additional defaults
or anticipated defaults subsequent to such announcement. The Company intends
to file its next default status report on Thursday, April 16, 2009.

    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 timing of filing of default
status reports, 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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