Magna Entertainment Corp. files first default status report

AURORA, ON, April 7 /PRNewswire-FirstCall/ - Magna Entertainment Corp. ("MEC"
or the "Company") 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.

SOURCE Magna Entertainment Corp.

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