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Media Release Media Release Pepsi Rides with Magna Entertainment Corp. at 13 Racetracks in North America September 14, 2004, Aurora, Ontario, Canada – And they’re off! Magna Entertainment Corp. (“MEC”) (NASDAQ: MECA; TSX: MEC.A), the number one owner and operator of horse racetracks in North America based on revenue, and Pepsi-Cola North America, a unit of PepsiCo Inc. ("Pepsi-Cola") (NYSE: PEP) announced today that they have signed a multi-year sponsorship agreement to exclusively pour Pepsi-Cola products at thirteen MEC racetracks in North America, including Pimlico Race Course in Maryland, Gulfstream Park in Florida and Santa Anita Park in Southern California. Pepsi-Cola North America will be known as the “Official Soft-Drink Supplier” at MEC racetracks and will be granted rights to utilize all MEC trademarks, including the specialty race logos created for races such as the Sunshine Millions, the Preakness and the Santa Anita Derby, as well as individual use of the MEC racetrack trademarks for all associated Pepsi-Cola brands. Most tracks will begin converting to Pepsi brands immediately and Pepsi-Cola promotions featuring MEC properties will hit the marketplace starting this winter. In addition, Pepsi-Cola North America will advertise on HorseRacing TV (HRTV), a horse racing television channel owned by MEC and distributed by various cable and satellite carriers, including the DISH Network, to over 11 million homes in the U.S. The agreement also includes in-stadium signage at the track level as well as grandstand visibility and announcements. "The horse racing industry has made giant strides in the past few years thanks to excellent promotional and marketing efforts as well as a handful of high-profile, compelling storylines," said Tom Reynolds, Vice-President of Foodservice Sales of Pepsi-Cola North America. "Our relationship with MEC will enable us to capitalize on this renewed focus on the sport of kings. We’ll reach consumers at some of the finest tracks in the world on some of the most important racing dates of the year, including this year’s Breeders' Cup.” "As MEC strives to grow as a leader in the global entertainment business, we are delighted to align ourselves strategically with a global leader like Pepsi-Cola. They represent the qualities we strive for: integrity, ambition and commitment to their customers,” said MEC President and CEO Jim McAlpine. “This will be a mutually beneficial relationship as Pepsi-Cola North America has committed tremendous resources over the term of the contract to activate the sponsorship and enhance and market our relationship.” About Pepsi-Cola North America Purchase, N.Y.-based Pepsi-Cola North America (www.pepsi.com) is the $4 billion refreshment beverage unit of PepsiCo Inc. in the United States and Canada. Its U.S. brands include Pepsi, Diet Pepsi, Pepsi Edge, Pepsi ONE, Wild Cherry Pepsi, Pepsi Twist, Pepsi Vanilla, Mountain Dew, Mountain Dew Code Red, Mountain Dew LiveWire, Sierra Mist, Mug, Slice, Aquafina, Dole single-serve juices, Tropicana Juice Drinks and SoBe. The company also makes and markets North America's best-selling ready-to-drink iced teas and coffees, respectively, via joint ventures with Lipton and Starbucks. About Magna Entertainment Corp. Magna Entertainment Corp. (MEC), North America’s number one owner and operator of horse racetracks, based on revenue, acquires, develops and operates horse racetracks and related pari-mutuel wagering operations, including off- track betting facilities. Additionally, MEC owns and operates XpressBet, a national Internet and telephone account wagering system, and HorseRacing TV, a 24-hour horse racing television network. MEC racetracks play host to such notable races as the Preakness at Pimlico, and the Sunshine Millions hosted simultaneously at Gulfstream Park in Florida and the renowned Santa Anita Park in Southern California. For more information, visit www.magnaentertainment.com. Contact information: MEC: Geoff Fardy, VP Sales & Marketing (905) 726-7054 or [email protected] Pepsi-Cola North America: Dave DeCecco, Director, Public Relations (914) 253-2655 or [email protected] .
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