Magna Entertainment Corp. - Media Release

    AURORA, ON, Aug. 28 /CNW/ - Magna Entertainment Corp. ("MEC") (NASDAQ:  
MECA; TSX: MEC.A) announced today that it is in continuing discussions with
the Thoroughbred Horsemen's Group ("THG") aimed at improving the economic
condition of the Horse Racing Industry through the development of more
equitable pricing and distribution models for advanced deposit wagering.

    Frank Stronach, MEC Chairman and Chief Executive Officer commented: "We
welcome the opportunity to work with the THG as a national agency assisting
local horsemen's groups. We are having very constructive conversations with
Bob Reeves and Wilson Shirley of the THG. We all understand horseracing faces
major challenges, and I personally believe that a national horsemen group
could be very beneficial in addressing major national issues like advanced
deposit wagering pricing and distribution strategy. I am hopeful that in the
near future, we will develop a new framework which will improve the economics
of the horseracing industry for both race tracks and horse owners."

    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 Report 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 improvement of
the economic condition of the Horse Racing Industry; 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, 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 the September 12, 2007
adopted plan to eliminate the Company's debt, although not on the originally
contemplated time schedule, and comply with the terms of and/or obtain waivers
or other concessions from the Company's lenders and refinance or repay on
maturity the Company's existing financing arrangements (including a senior
secured revolving credit facility with a Canadian financial institution and
the short-term bridge loan facility of up to $110.0 million with a subsidiary
of MEC's controlling shareholder, MI Developments Inc.), and there will not be
any material adverse changes in: general economic conditions; the popularity
of horse racing and other gaming activities; weather and other environmental
conditions at the Company's facilities; the regulatory environment; and our
ability to develop, execute or finance the Company's strategies and plans as

    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: Ron Charles, Chief Operating Officer, Magna
Entertainment Corp., (626) 574-7223

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