Be A Part Of The Excitement!

MEC Marketing and Partnership Program

Dear Potential Partner,

When we established Magna Entertainment Corp. (MEC), we saw a unique opportunity to improve the way racetracks are run and to bring the excitement of live racing and pari-mutuel wagering, via emerging technology, into the living-rooms of our customers and into sports bars and other entertainment venues around the world.

Today, MEC is North America’s number one owner and operator of horse racetracks, based on revenues, and one of the world’s leading suppliers of live horse racing to the international simulcast market.

And with that enviable market position, we have a large and loyal following of enthusiastic customers. Customers that love the excitement of live horse racing. Customers that you can now have access to.

I strongly believe that we can offer you a unique and cost-effective venue for your valuable marketing dollar, and I invite you to explore the many options we offer.

Sincerely,

Frank Stronach

Frank StronachChairman of the BoardMagna Entertainment Corp.

Welcome to MEC...

The World of MEC... Magna Entertainment Corp. (MEC) is North America’s number one owner and operator of horse racetracks, based on revenues, and one of the world’s leading suppliers, via simulcasting, of live racing content to the growing inter-track, off-track and account wagering markets.

MEC owns, operates or manages 17 tracks, including some of the most prestigious properties in North America such as Santa Anita Park near Los Angeles, Gulfstream Park in Miami, Lone Star Park at Grand Prairie near Dallas, Texas (home of the 2004 Breeders’ Cup) and Pimlico Race Course (home of the Preakness Stakes®),as well as the newly opened Magna Racino™ near Vienna, Austria.

MEC operates a growing off-track betting (OTB) network in several states and a national account wagering business, XpressBet™, which permits customers to wager on races by telephone and over the Internet, subject to legal restrictions. MEC also owns and operates HorseRacing TV™, a 24-hour television network that provides live horse racing action from six to ten racetracks daily, including exclusive action from MEC racetracks.

We’re a mass marketer – with racing content 363 days a year – over several time zones around the world. Nearly 30 million customers experience MEC racing annually – at the track, on an MEC simulcast at home, or by phone or Internet through XpressBet™.

We distribute our live racing content to more than 1,000 off-track and inter-track venues around the world.

Ten of MEC’s tracks are located in the top 25 media markets in the United States. As a television broadcaster and one of the leading simulcast suppliers of live horse racing, MEC reaches 23 of the top 25 markets.

We’re also taking the lead by creating new racing entertainment action for our customers.The Sunshine Millions™ is the first of many MEC exclusively-branded annual racing events. The Sunshine Millions™ pits California-breds against Florida-breds in an eight race head-to-head, coast-to-coast showdown held at Santa Anita Park and Gulfstream Park. In 2004, the two hour program carried live on NBC Sports had an overnight rating of 1.7. The Preakness Stakes® in 2004, held at Pimlico Race Course in Baltimore drew a crowd of over 112,000 people. Race fans across the country bet over $87,000,000 on the Preakness Stakes® through the pari-mutuel windows, setting both attendance and handle records. NBC Sports announced that its coverage of Preakness delivered a Nielsen rating of 7.7/19, up 35% from the year before.

We’ve also launched a new wagering experience called Magna 5™. For a minimum wager of $2.00 with a guaranteed pool of $500,000, customers can wager on up to 5 races each Saturday. We’re creating new products – and expanding our existing markets.

Across America, MEC is transforming the exciting sport of horse racing into one of the most dynamic, multimedia entertainment businesses in the world. A world that you can now be part of.

OREGON

Portland

MultnomahGreyhound Park

Portland Meadows

18

CALIFORNIA

San Francisco

Los AngelesSan Luis Rey Downs

Golden Gate Fields

Bay Meadows

Santa Anita Park

TEXAS

OKLAHOMA

Dallas

Oklahoma City

Remington Park

Lone Star Parkat Grand Prairie

6

FLORIDA

Gulfstream ParkPalm MeadowsMiami

MICHIGAN

ONTARIO

Flamboro Downs

Great Lakes Downs

Hamilton8

OHIO

PENNSYLVANIA

MARYLAND

VIRGINIA

Thistledown

Colonial Downs*

The MeadowsLaurel Park

Bowie Training Center

PimlicoPittsburghBaltimore

New Kent

Cleveland

1

4

2

5

MEC RacetrackMEC Training FacilityNumber of MEC AffiliatedOff-Track Betting (OTB) Locations

* Colonial Downs is managed by MEC througha management contract with The Maryland Jockey Club

NOTE: Map does not show Magna Racino, Austria– which is scheduled to open in 2004

MEC Racetrack and OTBLocations

Television DMA Markets and Rankings

Racetrack Market Rank TV Households Population % of U.S. PopulationSanta Anita Park – California 2 5,303,490 16,260,400 5.030Bay Meadows/Golden Gate Fields – California 5 2,426,010 6,749,300 2.301Lone Star Park at Grand Prairie – Texas 7 2,201,170 5,800,200 2.066Pimlico Race Course – Maryland 8 2,128,430 5,667,800 2.019 (Washington)Laurel Park – Maryland 24 1,023,530 2,559,825 0.971 (Baltimore) 3,151,960 8,226,625 2.99 (combined)Gulfstream Park – Florida 15 1,549,680 3,874,200 1.470Thistledown – Ohio 17 1,513,130 3,782,825 1.435The Meadows – Pennsylvania 21 1,146,340 2,870,850 1.089Portland Meadows/Multnomah Greyhound Park – Oregon 23 1,069,260 2,673,150 1.014Great Lakes Downs – Michigan 38 702,210 1,755,525 0.666Remington Park – Oklahoma 45 623,760 1,559,400 0.592Flamboro Downs – Ontario 1 2,377,000 12,067,000 19.7 Total % of U.S. Population: 18.653 Total % of Canadian Population: 19.7Source: SRDS

MEC at a Glance

Race Carrier

The Preakness® Stakes – Pimlico Race Course

The Sunshine Millions™ – Gulfstream/Santa Anita

El Camino Real Derby – Golden Gate Fields

Dallas Turf Cup – Lone Star Park at Grand Prairie

Gulfstream Park Handicap – Gulfstream Park

Malibu Stakes – Santa Anita Park

Santa Anita Derby – Santa Anita Park

Ohio Derby – Thistledown

Best of Ohio Day – Thistledown

Oklahoma Derby – Remington Park

Fountain of Youth Stakes – Gulfstream Park

Bay Meadows Handicap – Bay Meadows

California Derby – Golden Gate Fields

Race Carrier

Golden Gate Handicap – Bay Meadows

Lone Star Derby – Lone Star Park at Grand Prairie

Texas Mile – Lone Star Park at Grand Prairie

Florida Derby – Gulfstream Park

NTRA All-Star Jockey Championship – Lone Star Park

Lone Star Million Day – Lone Star Park at Grand Prairie

Pimlico Special – Pimlico Race Course

Dixie Handicap – Pimlico Race Course

Black-Eyed Susan Stakes – Pimlico Race Course

Gallorette Handicap – Pimlico Race Course

Sprintfest – Laurel Park

Maryland Million Classic – Laurel Park

January February March April May June July August September October November December

Portland Meadows

Bay Meadows

Flamboro Downs

Golden Gate Fields

Great Lakes Downs

Gulfstream Park

Laurel Park

Lone Star Park

Magna Racino

Multnomah

Pimlico

Remington Park

Santa Anita Park*

The Meadows

Thistledown

MEC 2004 RacingCalendar

MEC Major Races and NetworkCarriers

* Includes The Oak Tree Meet, September 29 to October 31, which is operated by the Oak Tree Racing Association, at Santa Anita Park.

MEC’s Commitment to Technology MEC is utilizing technology to expand its customer base and deliver major league racing action and wagering opportunities to customers in more time zones and countries around the world. XpressBet™ – MEC’s wagering system over the Internet and by telephone, and HorseRacing TV™ – MEC’s Television Network are two powerful examples of how MEC is bringing horse racing to more people in more places, more often.

MEC is developing innovative new wagering terminals that combine the excitement of horse racing with the fun and simplicity of slot machines. MEC plans to introduce the new terminals at one or more of its tracks over the next year. MEC is also launching new, customer-friendly handheld wireless wagering devices with touch-activated screens. These convenient portable devices provide racetrack and OTB customers with enhanced service.

Setting up for another busy day at Sirona’s™ Restaurant and bar at Santa Anita.

MEC’s Commitment to Entertainment MEC is providing its customers with enhanced entertainment experiences at all of its locations: racetracks, simulcast pavilions and off-track betting facilities.

MEC continues to introduce a diverse mix of entertainment experiences at its racetracks, such as live concerts, exciting race day events, including everything from skydivers and tropical beach parties to calypso bands and samba dancers, as well as national contests, prizes and give-aways.

A key part of MEC’s focus on the total customer experience involves offering quality hospitality services at all of its venues. MEC provides customers with a wide range of delicious, quality food and beverage choices – everything from gourmet dining at a racetrack restaurant to grandstand concessions.

Alternative gaming, particularly in the form of slots and video lottery terminals (VLTs), is increasingly becoming part of the competitive landscape in the racing industry. MEC is well positioned to add slots and VLTs at its racetrack facilities in a number of key states where legislators are considering their introduction.

Join us, as we create “The New World of Horse Racing”.Concert at Gulfstream Park.

Targeting the Growing In-HomeMarket

Another key pillar in MEC’s strategy for expanding racing and wagering distribution is XpressBet™,MEC’s online and telephone account wagering service. Following a successful launch in California in January 2002, XpressBet™ now has approximately 45,000 active customers.

Anytime... From Anywhere. With an XpressBet™ account, customers can wager online at www.xpressbet.com or over the phone at 1-866-80XPRESS (where permitted by law). XpressBet™ customers can now wager at over 100 North American racetracks and internationally on races in Australia, South Africa and Dubai. The service also provides up-to-the-minute racing information, live odds and results, race programinformation, real-time audio and video streaming on an easy-to-use betting screen with no membership or per wager fees.

How to Play Go to www.xpressbet.com 1: Enter your user name and password 2: Review the race program with live odds 3: Make a wager and submit your bet. Within seconds, a bet receipt will appear. Enjoy the race!

1 2 3

“The Internet has become one of the most powerful mediums in today’s world, and with horse racing’s need to deliver huge amounts of information in a split second, XpressBet™ has become a strong “must have” tool for every person interested in horse racing. XpressBet™ constantly strives to improve the high level of service provided to its customers all over the world by making a commitment to continually advance and upgrade its site and services.At XpressBet™ we deliver excitement!”

Jim McAlpinePresident and Chief Executive OfficerMagna Entertainment Corp.

*Must be 18 years of age (21 in Arizona) to obtain or use an XpressBet™ account. Account wagering is not permitted in all states. XpressBet™ encourages responsible wagering. National Problem Gaming Support Line 1-800-522-4700

Reaching More Customers More Often

HorseRacing TV™ is a 24-hour television network that provides live horse racing action from up to ten racetracks daily, including exclusive action from MEC racetracks. Produced at MEC’s award-winning studio located at Santa Anita Park, HorseRacing TV™ delivers wire-to-wire coverage along with post parades, odds, results and live racing replays up to 15 hours per day. The program schedule also provides programming related to the sport of horse racing, including expert commentary and insight that allow viewers to make informed handicapping decisions. All live racing content on HorseRacing TV™ is available for wagering, subject to legal restrictions, via XpressBet™, MEC’s nationaltelephone and Internet account wagering service.

MEC’s production studio at Santa Anita.

“Television is the most powerful media tool

available today and MEC intends to use its

around-the-clock coverage of the sport to its

maximum capability. To that end, HRTV™

represents a new genre of sports television, which

will raise both the visibility and popularity of the

sport of horse racing.”

Now reaching over 11 million cable & satellite homes

An MEC Exclusive!Telecast live on NBC Sports, this 2 hour head-to-head showdown between California-bred and

Florida-bred thoroughbreds drew a 1.7 overnight rating in 2004. On-track attendance also grew with 44,000 fans watching from Santa Anita Park in California and Gulfstream Park in Florida.

The Sunshine Millions™ ConceptA cross-continent rivalry for “Breeding Bragging Rights” between California and Florida, designed

to evoke the “warm climate” appeal of winter events in a high “houses using television” monthto a large cold weather segment of the North American population.

“WOW” FactorA guaranteed purse of 3.6 million dollars over a total of 8 races.

GrowthAttendance increased by 41% over a year ago and wagering handle increased 32% (2003 to 2004).

TV viewership grew 15% (2003 to 2004) making Sunshine Millions™ the 7th highest ratedsports show of the week!

“Sunshine Millions™ was the leadingnetwork sports program in major markets such as Boston, Cleveland and Miami on January 24th, 2004... that kind of success demonstrates that if we work together to put compelling entertaining product into people’s homes, thoroughbred racing will draw an audience and introduce new fans to our exciting sport.”

Jim McAlpinePresident and Chief Executive OfficerMagna Entertainment Corp.

MEC’s Commitment to Innovate and Create

MEC Network Participation In-house and simulcast TV broadcasts of 30 second spots and poster/POS program ad distribution and placement.

Additional Opportunities• Sunshine Millions™ presenting or title sponsor• Special vignette sponsor• Promotional prize sponsor• On-site signage and exposure• On-site hospitality at both or individual tracks• 30 second simulcast commercials

Broadcast Advertising Rates and Inventory• 30 second Commercial Spots• Opening/Closing Billboards (production included)• In-Broadcast Features (production included)

Sponsored features also available during broadcast:• Current day race replays (totalling 8 races with 1 and 2 replays per race)• Field images for all upcoming races that day (1 per race, 8 races to be run)• Race results for all races that day (1 per race, 8 races to be run)

Don’t Get Left Behind!

This document and the information therein have been prepared strictly for the purposes of this presentation and the mutual exploration of potential business opportunities by MEC and the recipient with each other, and is not to be used by the recipient for any other purpose. This document is not an invitation or solicitation to invest in MEC. This document represents bona fide research, information and beliefs available to those preparing the document at the time of printing. However, such information is subject to change, uncertainties and differing interpretations and conclusions, and MEC makes no representations or warranties other than those which may be embodied in a written agreement between the recipient and MEC.

MEC RacetracksBay Meadows™, located in San Mateo, California between San Francisco and San Jose, commenced its inaugural meet in 1934. The facilities at Bay Meadows™ include a one-mile oval track with 1 1/4 mile and 3/4 mile chutes and a 7/8 mile turf course. MEC acquired the operations at Bay Meadows™ and leased the facility in November 2000.

Colonial Downs™, located 20 miles west of Williamsburg, Virginia, com-menced its inaugural meet in September 1997. The facilities at Colonial Downs™ include harness racing’s only one-turn mile racetrack. Horses start from a chute on the backstretch, race in a half mile straightaway once departing the gate, maneuver through a sweeping quarter mile turn, then face a 1,300 foot stretch drive resulting in fast times. MEC currently holds a management contract with Colonial Downs™.

Flamboro Downs™ is located in Hamilton, Ontario approximately 45 miles from Toronto. Since opening in 1975 it has acquired a reputation as “Canada’s Fastest Track”. Flamboro offers live harness racing five days a week, year-round and daily simulcast wagering on-track and at 7 OTB locations. The facility also features 750 slot machines. MEC completed its acquisition of Flamboro Downs™ in April 2003.

Golden Gate Fields™, located approximately eight miles from Oakland and 11 miles from San Francisco commenced its inaugural meet in 1941. Golden Gate Fields’ facilities sit on 181 acres of land and include a one-mile main track and a 9/10-mile turf course. MEC acquired Golden Gate Fields™ in December 1999.

Great Lakes Downs™ is located in Muskegon, Michigan about 35 miles from Grand Rapids. Great Lakes Downs’ facilities include a 5/8-mile dirt track. MEC acquired Great Lakes Downs™ in February 2000.

Gulfstream Park™ is located in Halandale, Florida just north of Miami. Known as the home of the Florida Derby, Gulfstream is the premier east coast thoroughbred racetrack which operates during the winter months. Having first opened in 1939, Gulfstream Park™ is located on approximately 255 acres of land. The Breeders’ Cup ™ has been held at Gulfstream Park™ three times – in 1989, 1992 and 1999. Its racing facilities include a one-mile main track and a 7/8-mile turf track. MEC acquired the facility in September 1999.

Laurel Park™, located between Baltimore, Maryland and Washington D.C., first appeared on the racing scene on October 2, 1911. The facilities at Laurel Park™ include a 1 1/8-mile oval track with a seven-furlong chute and a one-mile turf course. MEC acquired a majority interest in the operations of Laurel Park™ and its sister track, Pimlico, in November 2002.

Lone Star Park at Grand Prairie®, located in Grand Prairie, Texas about 12 miles west of Dallas, is one of the newest horse racing facilities in the United States. Lone Star Park’s facilities sit on 285 acres of land and include a one-mile dirt track and a 7/8-mile turf course. MEC acquired the operations of Lone Star Park® and leased the facility in October 2002.

Magna Racino™, a brand new horse racetrack and gaming facility is the most recent addition to the MEC family, opening in April 2004. Magna Racino™ is located near Vienna, Austria and offers both thoroughbred and standardbred racing with a modern grandstand and massive video wall.

The Meadows™ is located in the greater Pittsburgh area in Pennsylvania,on approximately 155 acres of land. It first opened in 1963 and has a year-round racing schedule. Pacers and trotters race on a 5/8-mile harness track. The 4 OTB facilities that MEC acquired with The Meadows™ are also located in the greater Pittsburgh area and offer wagering on simulcast races from racetracks across the country. MEC acquired The Meadows™ harness facility, its first standard racetrack, in April 2001.

Multnomah Greyhound Park™ is located in Portland, Oregon. It offers live greyhound racing approximately six months per year as well as simul-casting of horse racing and greyhound racing around the country. MEC acquired this facility in October 2001.

Pimlico Race Course™, located in Baltimore, Maryland, opened its doors on October 25, 1870, making this track the second oldest in the nation behind Saratoga, which debuted in 1864. Pimlico is the home of the renowned Preakness Stakes®. The facilities at Pimlico™ include a one-mile oval track with 1 1/4-mile and 3/4-mile chutes and a 7/8-mile turf course. MEC acquired a majority interest in Pimlico™ and its sister track, Laurel Park™, in November 2002.

Portland Meadows™ is located in the Delta Park area of Portland, Oregon. MEC acquired Portland Meadows™ in 2001.

Remington Park™ is located in Oklahoma City, Oklahoma and offers a total of approximately 80 live racing days each year. Remington Park’s facilities include a one-mile dirt track, a 7/8-mile turf course and recently installed lighting to permit night racing.

Santa Anita Park™ is located in Arcadia, California about 14 miles north-east of Los Angeles. Widely acclaimed as one of the most beautiful settings for racing anywhere, Santa Anita Park™ is known as “The Great Race Place”. Santa Anita first opened for thoroughbred horse racing in 1934 and was acquired by MEC in 1998. Famed for its art-deco style grandstand and view of the San Gabriel Mountains, Santa Anita is situated on 305 acres of land and features a one-mile oval dirt track and a 7/8-mile turf course. Of the most popular spots at Santa Anita is Frontrunners Restaurant, a gourmet dining facility that seats up to 750 people and the newly opened Sirona’s™, a high-energy sports bar located across from the walking ring. There, customers are able to enjoy a variety of professional sports on four big-screen TVs and more than 20 other screens located throughout the restaurant and bar.

Thistledown™ is located about 10 miles southeast of downtown Cleveland in Ohio. Annually, Thistledown™ hosts the Ohio Derby, which is the premier graded stakes races in Ohio and one of the top races for three-year olds in the country. Thistledown’s facilities include a one-mile oval track. MEC acquired Thistledown™ in November 1999.