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AURORA, ON, Aug. 28 /CNW/ -- AURORA, ON, Aug. 28 /CNW/ - Magna Entertainment Corp. ("MEC") (NASDAQ: MECA; TSX: MEC.A) announced today that it is in continuing discussions with the Thoroughbred Horsemen's Group ("THG") aimed at improving the economic condition of the Horse Racing Industry through the development of more equitable pricing and distribution models for advanced deposit wagering.

Frank Stronach, MEC Chairman and Chief Executive Officer commented: "We welcome the opportunity to work with the THG as a national agency assisting local horsemen's groups. We are having very constructive conversations with Bob Reeves and Wilson Shirley of the THG. We all understand horseracing faces major challenges, and I personally believe that a national horsemen group could be very beneficial in addressing major national issues like advanced deposit wagering pricing and distribution strategy. I am hopeful that in the near future, we will develop a new framework which will improve the economics of the horseracing industry for both race tracks and horse owners."

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 Report 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) and include, among others, statements regarding the improvement of the economic condition of the Horse Racing Industry; and other matters that are not historical facts.

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, 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, that we will continue with our efforts to implement the September 12, 2007 adopted plan to eliminate the Company's debt, although not on the originally contemplated time schedule, and comply with the terms of and/or obtain waivers or other concessions from the Company's lenders and refinance or repay on maturity the Company's existing financing arrangements (including a senior secured revolving credit facility with a Canadian financial institution and the short-term bridge loan facility of up to $110.0 million with a subsidiary of MEC's controlling shareholder, MI Developments Inc.), and there will not be any material adverse changes in: general economic conditions; the popularity of horse racing and other gaming activities; weather and other environmental conditions at the Company's facilities; the regulatory environment; and our ability to develop, execute or finance the Company's strategies and plans as anticipated.

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.