Magna Entertainment
	    -------------------------------------------------------------------------

	                                      Fiscal Years Ended    Fourth Quarter
	                                         December 31,      Ended December 31,

	                                        2000      1999      2000      1999
	                                        ----      ----      ----      ----

	    Revenue                         $ 413,563  $ 186,860  $ 74,538  $ 43,864


	    Earnings (Loss) Before
	     Interest, Taxes,
	     Depreciation and
	     Amortization                   $  21,829  $   9,777  $ (9,674) $ (2,556)

	    Net Income (Loss)               $     441  $     (62) $ (9,181) $ (3,062)

	    Diluted earnings
	     (loss) per share               $    0.01  $    0.00  $  (0.11) $  (0.04)

	    All amounts are reported in thousands of U.S. dollars, except
	    per share figures.

	    -------------------------------------------------------------------------



MAGNA ENTERTAINMENT CORP.
	    CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
	    -------------------------------------------------------------------------
	    (Unaudited)
	    (United States dollars in
	    thousands, except per share figures)
	    -------------------------------------------------------------------------
	                                    Fiscal years ended    Three months ended

	                                   December   December   December   December
	                                        31,        31,        31,        31,
	                                       2000       1999       2000       1999
	    -------------------------------------------------------------------------
	    Revenue
	    Racetrack
	      Wagering, gross               301,288    133,924     40,199     21,893
	      Non-wagering                   53,961     31,022     14,909     12,224
	    Real estate
	      Sale of real estate            37,630      2,544     12,595      2,544
	      Rental and other               20,684     19,370      6,835      7,203
	    -------------------------------------------------------------------------
	                                    413,563    186,860     74,538     43,864

	    -------------------------------------------------------------------------
	    Costs and expenses
	    Racetrack
	      Purses, awards and other      190,043     85,520     25,178     13,645
	      Operating costs               128,612     63,302     31,591     21,003
	      General and administrative     18,117      5,987      7,098      2,209
	    Real estate
	      Cost of real estate sold       30,656      1,916     11,672      1,916
	      Operating costs                18,928     18,071      7,278      6,874
	      General and administrative      1,133      1,833        412        534
	    Predevelopment and other costs    4,245        454        983        239
	    Depreciation and amortization    20,061      7,924      5,317      3,248
	    Interest expense                  3,263      1,666      1,313        407
	    Interest income                  (3,048)    (2,586)      (892)    (1,591)
	    -------------------------------------------------------------------------
	                                    412,010    184,087     89,950     48,484

	    -------------------------------------------------------------------------
	    (Loss) income before income
	     taxes                            1,553      2,773    (15,412)    (4,620)
	    Income tax (benefit) provision    1,112      2,835     (6,231)    (1,558)
	    -------------------------------------------------------------------------
	    Net (loss) income                   441        (62)    (9,181)    (3,062)
	    Other comprehensive income (loss):
	      Foreign currency translation
	       adjustment                    (8,938)    (7,493)     4,804     (3,585)
	    -------------------------------------------------------------------------
	    Comprehensive loss               (8,497)    (7,555)    (4,377)    (6,647)

	    -------------------------------------------------------------------------
	    -------------------------------------------------------------------------

	    (Loss) earnings per share
	     of Class A Subordinate
	     Voting Stock, Class B
	     Stock or Exchangeable Share:
	       Basic                         $ 0.01     $ 0.00    $ (0.11)    $(0.04)
	       Diluted                       $ 0.01     $ 0.00    $ (0.11)    $(0.04)
	    -------------------------------------------------------------------------
	    -------------------------------------------------------------------------

	    Average number of shares
	     of Class A Subordinate
	     Voting Stock, Class B
	     Stock and Exchangeable
	     Shares (in thousands):
	      Basic                          80,422     78,686     80,466     78,686
	      Diluted                        80,424     78,686     80,466     78,686
	    -------------------------------------------------------------------------
	    -------------------------------------------------------------------------



	    MAGNA ENTERTAINMENT CORP.
	    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
	    -------------------------------------------------------------------------
	    (Unaudited)
	    (United States dollars in thousands)
	    -------------------------------------------------------------------------
	                                  Twelve months ended    Three months ended

	                                  December   December   December   December
	                                        31,        31,        31,        31,
	                                      2000       1999       2000       1999
	    -------------------------------------------------------------------------
	    Cash provided from (used for):

	    OPERATING ACTIVITIES
	    Net income                         441        (62)    (9,181)    (3,062)
	    Items not involving
	     current cash flows              7,285      6,001        643        608

	    -------------------------------------------------------------------------
	                                     7,726      5,939     (8,538)    (2,454)
	    Changes in non-cash
	     working capital               (27,911)     9,287      1,096     16,436
	      Net cash provided
	       from (used for)
	       Operating Activities        (20,185)    15,226     (7,442)    13,982
	    -------------------------------------------------------------------------
	    INVESTMENT ACTIVITIES
	    Acquisition of business        (25,887)  (160,812)   (24,117)   (73,233)
	    Real estate property and
	     fixed asset additions         (54,028)   (56,447)   (39,722)   (21,847)
	    Proceeds on sale of real
	     estate                         37,630      2,544     12,595      2,544
	    Proceeds on real estate
	     sold to Magna                   6,147          -          -          -
	    Other assets disposals
	     (additions)                     1,761       (683)       409       (683)

	    -------------------------------------------------------------------------
	      Net cash provided
	       from (used for)
	       Investing Activities        (34,377)  (215,398)   (50,835)   (93,219)
	    -------------------------------------------------------------------------
	    FINANCING ACTIVITIES
	    Increase (decrease) in
	     bank indebtedness                 759     (2,722)     7,518       (233)
	    Increase of (repayment
	     of) long-term debt             32,147     (3,278)    38,789        (80)
	    Issue of Class A
	     Subordinate Stock               1,846          -          -          -
	    Contributed capital, net
	     of tax                          1,352          -          -          -
	    Decrease in note payable
	     due from Magna                      -          -          -    111,622
	    Net contribution by Magna            -    244,458          -        164

	    -------------------------------------------------------------------------
	      Net cash provided
	       from (used for)
	       Financing Activities         36,104    238,458     46,307    111,473
	    -------------------------------------------------------------------------
	    Effect of exchange rate
	     changes on cash and
	     cash equivalents                 (226)       (68)       356        (59)
	    -------------------------------------------------------------------------
	    Net increase (decrease)
	     in cash and cash
	     equivalents during
	     the period                    (18,684)    38,218    (11,614)    32,177
	    Cash and cash equivalents,
	     beginning of period            50,660     12,442     43,590     18,483

	    -------------------------------------------------------------------------
	    Cash and cash equivalents,
	     end of period                  31,976     50,660     31,976     50,660

	    -------------------------------------------------------------------------
	    -------------------------------------------------------------------------



	    MAGNA ENTERTAINMENT CORP.
	    CONDENSED CONSOLIDATED BALANCE SHEETS
	    -------------------------------------------------------------------------
	    (Unaudited)
	    (United States dollars in thousands)
	    -------------------------------------------------------------------------
	                                                         December   December
	                                                              31,        31,
	                                                             2000       1999
	    -------------------------------------------------------------------------
	                                   ASSETS
	    -------------------------------------------------------------------------
	    Current assets:
	      Cash and cash equivalents                            31,976     50,660
	      Restricted cash                                      17,247      7,752
	      Accounts receivable                                  33,856     25,887
	      Prepaid expenses and other                            7,984      3,931
	    -------------------------------------------------------------------------
	                                                           91,063     88,230

	    -------------------------------------------------------------------------
	    Real estate properties and fixed assets, net          568,265    564,789

	    -------------------------------------------------------------------------
	    Other assets, net                                     117,561    100,967

	    -------------------------------------------------------------------------
	    Deferred income taxes                                   6,175      6,367

	    -------------------------------------------------------------------------
	                                                          783,064    760,353

	    -------------------------------------------------------------------------
	    -------------------------------------------------------------------------
	                    LIABILITIES AND SHAREHOLDERS' EQUITY
	    -------------------------------------------------------------------------
	    Current liabilities:
	      Bank indebtedness                                     7,609      7,259
	      Accounts payable and other liabilities               69,090     66,151
	      Income taxes payable                                  1,468      7,554
	      Long-term debt due within one year                   12,754     19,119
	    -------------------------------------------------------------------------
	                                                           90,921    100,083

	    -------------------------------------------------------------------------
	    Long-term debt                                         63,343     19,506

	    -------------------------------------------------------------------------
	    Other long-term liabilities                               234        494

	    -------------------------------------------------------------------------
	    Deferred income taxes                                  86,778     93,183

	    -------------------------------------------------------------------------
	    Shareholders' equity:
	    Capital stock issued and outstanding -
	      Class A Subordinated Voting Stock                   100,770     11,500
	      Exchangeable Shares                                  57,937    110,000
	      Class B Stock                                       394,094    429,455
	    Contributed surplus                                     1,352          -
	    Retained earnings (deficit)                            (1,990)    (2,431)
	    Accumulated comprehensive loss                        (10,375)    (1,437)
	    -------------------------------------------------------------------------
	                                                          541,788    547,087

	    -------------------------------------------------------------------------
	                                                          783,064    760,353

	    -------------------------------------------------------------------------
	    -------------------------------------------------------------------------