MEC Marketing and Partnership Program

Be A Part Of The Excitement! Welcome to MEC...

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 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. Frank Stronach Chairman of the Board I strongly believe that we can offer you a unique and cost-effective venue for Magna Entertainment Corp. your valuable marketing dollar, and I invite you to explore the many options we offer.

Sincerely,

Frank Stronach 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 (home of the 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 . 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 ® in 2004, held at Pimlico Race Course in 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. MEC MEC at a Glance Racetrack Multnomah Greyhound Park and OTB Portland Portland Meadows ONTARIO Locations OREGON 8 18 Flamboro Downs Hamilton MICHIGAN Great Lakes Downs PENNSYLVANIA Golden Gate Fields Cleveland 4 Thistledown Pittsburgh Pimlico San Francisco OHIO Baltimore The Meadows Bowie Training Center Bay Meadows 1 CALIFORNIA 2 VIRGINIA Colonial Downs* New Kent 5

Santa Anita Park Remington Park Los Angeles Oklahoma City San Luis Rey Downs OKLAHOMA 6

Lone Star Park Dallas MEC Racetrack at Grand Prairie MEC Training Facility TEXAS Number of MEC Affiliated Off-Track Betting (OTB) Locations FLORIDA * Colonial Downs is managed by MEC through Palm Meadows a management contract with The Gulfstream Park Miami NOTE: Map does not show Magna Racino, Austria – which is scheduled to open in 2004

Racetrack Market Rank TV Households Population % of U.S. Population Santa Anita Park – California 2 5,303,490 16,260,400 5.030 Television Bay Meadows/Golden Gate Fields – California 5 2,426,010 6,749,300 2.301 Lone Star Park at Grand Prairie – Texas 7 2,201,170 5,800,200 2.066 DMA Pimlico 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) Markets 3,151,960 8,226,625 2.99 (combined) Gulfstream Park – Florida 15 1,549,680 3,874,200 1.470 and Thistledown – Ohio 17 1,513,130 3,782,825 1.435 The Meadows – Pennsylvania 21 1,146,340 2,870,850 1.089 Rankings Portland Meadows/Multnomah Greyhound Park – Oregon 23 1,069,260 2,673,150 1.014 Great Lakes Downs – Michigan 38 702,210 1,755,525 0.666 Remington Park – Oklahoma 45 623,760 1,559,400 0.592 Flamboro Downs – Ontario 1 2,377,000 12,067,000 19.7 Total % of U.S. Population: 18.653 Total % of Canadian Population: 19.7 Source: SRDS January February March April May June July August September October November December Bay Meadows MEC 2004 Flamboro Downs Racing Golden Gate Fields Calendar Great Lakes Downs Gulfstream Park

Laurel Park Lone Star Park

Magna Racino

Multnomah Pimlico

Portland Meadows

Remington Park Santa Anita Park* The Meadows

Thistledown

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

Race Carrier Race Carrier The Preakness® Stakes – Pimlico Race Course Golden Gate Handicap – Bay Meadows MEC Major The Sunshine Millions™ – Gulfstream/Santa Anita Lone Star Derby – Lone Star Park at Grand Prairie Races and El Camino Real Derby – Golden Gate Fields Texas Mile – Lone Star Park at Grand Prairie Dallas Turf Cup – Lone Star Park at Grand Prairie Florida Derby – Gulfstream Park Network Gulfstream Park Handicap – Gulfstream Park NTRA All-Star Jockey Championship – Lone Star Park Carriers Malibu Stakes – Santa Anita Park Lone Star Million Day – Lone Star Park at Grand Prairie Santa Anita Derby – Santa Anita Park – Pimlico Race Course Ohio Derby – Thistledown Dixie Handicap – Pimlico Race Course Best of Ohio Day – Thistledown Black-Eyed Susan Stakes – Pimlico Race Course Oklahoma Derby – Remington Park Handicap – Pimlico Race Course Fountain of Youth Stakes – Gulfstream Park Sprintfest – Laurel Park Bay Meadows Handicap – Bay Meadows – Laurel Park California Derby – Golden Gate Fields 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.

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

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Targeting the Growing In-Home “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 Market 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 McAlpine President and Chief Executive Officer Magna 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 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 national Reaching telephone and Internet account wagering service. More “Television is the most powerful media tool Customers available today and MEC intends to use its around-the-clock coverage of the sport to its More Often 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.”

MEC’s production studio at Santa Anita. Now reaching over 11 million cable & satellite homes MEC’s Commitment to Innovate and Create An MEC Exclusive! Telecast live on NBC Sports, this 2 hour head-to-head showdown between California-bred and Florida-bred 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.

“Sunshine Millions™ was the leading network 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, racing will draw an audience and introduce new fans to our exciting sport.”

Jim McAlpine President and Chief Executive Officer Magna Entertainment Corp. The Sunshine Millions™ Concept A 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” month to a large cold weather segment of the North American population. “WOW” Factor A guaranteed purse of 3.6 million dollars over a total of 8 races. Growth Attendance 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 rated sports show of the week! MEC Network Participation Broadcast Advertising Rates and Inventory In-house and simulcast TV broadcasts of 30 second spots • 30 second Commercial Spots and poster/POS program ad distribution and placement. • Opening/Closing Billboards (production included) • In-Broadcast Features (production included)

Additional Opportunities Sponsored features also available during broadcast: • Sunshine Millions™ presenting or title sponsor • Current day race replays (totalling 8 races with 1 and 2 • Special vignette sponsor replays per race) • Promotional prize sponsor • Field images for all upcoming races that day (1 per race, • On-site signage and exposure 8 races to be run) • On-site hospitality at both or individual tracks • Race results for all races that day • 30 second simulcast commercials (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 Racetracks

Bay Meadows™, located in San Mateo, California between San Francisco Magna Racino™, a brand new horse racetrack and gaming facility is the and San Jose, commenced its inaugural meet in 1934. The facilities at Bay most recent addition to the MEC family, opening in April 2004. Magna Meadows™ include a one-mile oval track with 1 1/4 mile and 3/4 mile Racino™ is located near Vienna, Austria and offers both thoroughbred and chutes and a 7/8 mile turf course. MEC acquired the operations at Bay standardbred racing with a modern grandstand and massive video wall. Meadows™ and leased the facility in November 2000. The Meadows™ is located in the greater Pittsburgh area in Pennsylvania, Colonial Downs™, located 20 miles west of Williamsburg, Virginia, com- on approximately 155 acres of land. It first opened in 1963 and has a menced its inaugural meet in September 1997. The facilities at Colonial year-round racing schedule. Pacers and trotters race on a 5/8-mile harness Downs™ include harness racing’s only one-turn mile racetrack. Horses track. The 4 OTB facilities that MEC acquired with The Meadows™ are also start from a chute on the backstretch, race in a half mile straightaway once located in the greater Pittsburgh area and offer wagering on simulcast races departing the gate, maneuver through a sweeping quarter mile turn, then from racetracks across the country. MEC acquired The Meadows™ harness face a 1,300 foot stretch drive resulting in fast times. MEC currently holds a facility, its first standard racetrack, in April 2001. management contract with Colonial Downs™. Multnomah Greyhound Park™ is located in Portland, Oregon. It offers Flamboro Downs™ is located in Hamilton, Ontario approximately 45 live greyhound racing approximately six months per year as well as simul- miles from Toronto. Since opening in 1975 it has acquired a reputation as casting of horse racing and greyhound racing around the country. MEC “Canada’s Fastest Track”. Flamboro offers live harness racing five days acquired this facility in October 2001. 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 Pimlico Race Course™, located in Baltimore, Maryland, opened its acquisition of Flamboro Downs™ in April 2003. 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 Golden Gate Fields™, located approximately eight miles from Oakland renowned Preakness Stakes®. The facilities at Pimlico™ include a one-mile and 11 miles from San Francisco commenced its inaugural meet in 1941. oval track with 1 1/4-mile and 3/4-mile chutes and a 7/8-mile turf course. Golden Gate Fields’ facilities sit on 181 acres of land and include a one-mile MEC acquired a majority interest in Pimlico™ and its sister track, Laurel main track and a 9/10-mile turf course. MEC acquired Golden Gate Fields™ Park™, in November 2002. in December 1999. Portland Meadows™ is located in the Delta Park area of Portland, Great Lakes Downs™ is located in Muskegon, Michigan about 35 miles Oregon. MEC acquired Portland Meadows™ in 2001. from Grand Rapids. Great Lakes Downs’ facilities include a 5/8-mile dirt track. MEC acquired Great Lakes Downs™ in February 2000. Remington Park™ is located in Oklahoma City, Oklahoma and offers a total of approximately 80 live racing days each year. Remington Park’s Gulfstream Park™ is located in Halandale, Florida just north of Miami. facilities include a one-mile dirt track, a 7/8-mile turf course and recently Known as the home of the Florida Derby, Gulfstream is the premier east installed lighting to permit night racing. coast thoroughbred racetrack which operates during the winter months. Having first opened in 1939, Gulfstream Park™ is located on approximately Santa Anita Park™ is located in Arcadia, California about 14 miles north- 255 acres of land. The Breeders’ Cup ™ has been held at Gulfstream Park™ east of Los Angeles. Widely acclaimed as one of the most beautiful settings three times – in 1989, 1992 and 1999. Its racing facilities include a one-mile for racing anywhere, Santa Anita Park™ is known as “The Great Race main track and a 7/8-mile turf track. MEC acquired the facility in September Place”. Santa Anita first opened for thoroughbred horse racing in 1934 and 1999. 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 Laurel Park™, located between Baltimore, Maryland and Washington of land and features a one-mile oval dirt track and a 7/8-mile turf course. D.C., first appeared on the racing scene on October 2, 1911. The facilities at Of the most popular spots at Santa Anita is Frontrunners Restaurant, a Laurel Park™ include a 1 1/8-mile oval track with a seven-furlong chute and a gourmet dining facility that seats up to 750 people and the newly opened one-mile turf course. MEC acquired a majority interest in the operations of Sirona’s™, a high-energy sports bar located across from the walking ring. Laurel Park™ and its sister track, Pimlico, in November 2002. 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 ® Lone Star Park at Grand Prairie , located in Grand Prairie, Texas about restaurant and bar. 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 Thistledown™ is located about 10 miles southeast of downtown Cleveland a one-mile dirt track and a 7/8-mile turf course. MEC acquired the operations in Ohio. Annually, Thistledown™ hosts the Ohio Derby, which is the of Lone Star Park® and leased the facility in October 2002. 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.