Magna Entertainment to Purchase Amtote

AURORA, Ontario – (PRESS RELEASE) -- Magna Entertainment Corp. ("MEC") (NASDAQ: MECA) today announced that it has exercised its first purchase option to acquire an additional 30% equity interest in AmTote International, Inc. ("AmTote") and has sent written notice of its intention to exercise its second purchase option to acquire the remaining 40% equity interest in AmTote, both pursuant to the terms of the Stockholders Agreement dated August 21, 2003. MEC first acquired a 30% equity and voting interest in AmTote, from the Corckran family and associates, in August 2003 for a purchase price of $3.8 million.

Joseph De Francis, a Director of the Board and Executive Vice-President of MEC, stated: "We are enthusiastic about our increased ownership in AmTote International. The pari-mutuel wagering industry is technology intensive and furthering our investment in this leading provider of wagering and gaming technology is an important strategic step for MEC."

MEC's purchase price to acquire the remaining 70% of AmTote will be determined at the purchase option closing dates in accordance with the formula contained in AmTote's Stockholders Agreement. The closing of the first purchase option, to acquire an additional 30% equity interest of AmTote, will occur no later than September 25, 2006 and the closing of the second purchase option, to acquire the remaining 40% equity interest, will occur no later than November 25, 2006. MEC expects that the aggregate purchase price for the remaining 70% of AmTote will be approximately $14 million. AmTote reported earnings before interest, taxes, depreciation and amortization ("EBITDA") of $7.2 million and net income of $3.0 million for its most recent fiscal year ended February 25, 2006.

MEC also announced that Steve Keech, currently MEC's Chief Information Officer, would be appointed the new President of AmTote. Mr. De Francis and Mr. Keech currently sit on the Board of Directors of AmTote. "I am very excited about the opportunity to work with everyone at AmTote to ensure a smooth transition", said Mr. Keech. "AmTote has been a major contributor to the pari-mutuel industry under the guidance of the Corckran family and we will be working with the Corckrans to develop a longer term role for them to provide guidance and assistance in the continued growth of AmTote."

"MEC's investment in AmTote is not only an investment for MEC, but an investment for the pari-mutuel industry at large. We intend to invest in the development of new technology and operate AmTote independently from MEC's racetracks, so that all participants in the pari-mutuel industry can benefit from advancements made by AmTote", noted Mr. De Francis.

AmTote is a global provider of totalisator and wagering technology. Amtote currently has service contracts with over 70 customers worldwide, including North American and international racetracks, sportsbooks, and online wagering entities. Amtote currently provides totalisator services to seven MEC racetracks as well as to MEC's online wagering companies.