MEC Purchases Amtote

AURORA, Ontario – (PRESS RELEASE) -- Magna Entertainment Corp. ("MEC") (NASDAQ: MECA) announced today that its wholly owned subsidiary MEC Maryland Investments Inc. ("MEC Maryland") has increased its equity and voting interest in AmTote International, Inc. ("AmTote") by acquiring the remaining 70% of AmTote for a cash purchase price of approximately $13.6 million, subject to a 10% holdback that will be released upon the satisfactory completion of an audited balance sheet. AmTote, a leading provider of totalisator services to the North American pari-mutuel industry with service contracts for over 70 North American racetracks and other wagering entities, became a wholly owned subsidiary of MEC Maryland upon closing of the transaction. MEC Maryland previously acquired its 30% interest in AmTote in August 2003 for a cash purchase price of $3.8 million.

Frank Stronach, Chairman and Interim Chief Executive Officer of MEC, stated: "Acquiring the remaining interest in AmTote represents a unique opportunity. We feel that significant synergies will be available due to the combination of MEC's racetrack operational expertise with AmTote's specialized knowledge of totalisator activities, a key component of the horseracing industry. This will benefit both the horseracing industry and consumers."

Joe DeFrancis, Executive Vice-President of MEC, stated: "Since MEC's initial investment in AmTote, the pace of innovation in the totalisator industry, and at AmTote in particular, has continued to increase. We feel that AmTote is at a key point in its history and as it moves forward we are eager to see it take advantage of its past innovations as well as its and the industry's future potential."

Steve Keech, the newly appointed President of AmTote, stated: "I am very excited to be joining the incredibly strong team at AmTote. Our core technology is the best in the industry, and we will continue to invest in the development of leading edge customer devices and innovative wagering solutions."

MEC, North America's number one owner and operator of horse racetracks, based on revenues, acquires, develops and operates horse racetracks and related casino and pari-mutuel wagering operations, including off-track betting facilities. Additionally, MEC owns and operates XpressBet®, a national Internet and telephone account wagering systems, and Horse Racing TV(TM), a 24-hour horse racing television network.