AURORA, ON, Sept. 15 /CNW/ - Magna Entertainment Corp. ("MEC" or the "Company") (NASDAQ: MECA; TSX: MEC.A) today announced that it has amended certain of its financing agreements including:

-   extending the maturity date of its $40 million senior secured
    revolving credit facility (the "Senior Bank Facility") with a
    Canadian chartered bank from September 15, 2008 to October 15, 2008;
-   extending the maturity date of its bridge loan facility (the "Bridge
    Loan") with a subsidiary (the "MID Lender") of MI Developments Inc.
    ("MID"), MEC's controlling shareholder, from September 30, 2008 to
    October 31, 2008; and
-   extending the due date of its $100 million repayment requirement
    under the Gulfstream Park project financing with the MID Lender from
    September 30, 2008 to October 31, 2008 (during which time any
    repayments will not be subject to a make-whole payment).

MEC incurred a fee of $0.4 million in connection with the extension of the Senior Bank Facility and a fee of $0.5 million in connection with the extension of the Bridge Loan.

Consideration of the amendments to the financing arrangements with the MID Lender was supervised by the Special Committee of MEC's board of directors consisting of Jerry D. Campbell (Chairman), Anthony J. Campbell and William J. Menear. The approval of MEC's board followed a favorable recommendation of the Special Committee.

MEC will file a material change report as soon as practicable after issuing this press release. The material change report will be filed less than 21 days prior to the closing of the loan amendments. The timing of the material change report is, in MEC's view, both necessary and reasonable because the terms of the amendments were settled and approved by MEC's board of directors and MEC requires immediate funding to address its short-term liquidity needs.

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.