AURORA, ON, Aug. 13 /PRNewswire-FirstCall/ -- MI Developments Inc. (TSX: MIM.A, MIM.B; NYSE: MIM) today announced that it and one of its wholly-owned subsidiaries (collectively, "MID") have agreed to amend the bridge loan (the "Bridge Loan") provided in September 2007 (and amended in May 2008) to Magna Entertainment Corp. ("MEC"), as well as the project financing facilities (the "Project Financings") provided in connection with MEC's racing and alternative gaming facilities at Gulfstream Park in Florida and Remington Park in Oklahoma. The maturity date of the Bridge Loan will be extended from August 31, 2008 to September 30, 2008. In addition, MID will extend the deadline for repayment of at least US$100 million under the Gulfstream Park facility from August 31, 2008 to September 30, 2008 (during which time any repayments made under either of the Project Financings will not be subject to a make-whole payment). In connection with the extension of the Bridge Loan, the MID Lender will receive an extension fee of US$527,500. The amendments are conditional on MEC extending the maturity date of its US$40 million senior secured revolving credit facility with a Canadian chartered bank from August 15, 2008 to September 15, 2008. The MID Board approved the amendments to the Bridge Loan and the Project Financings after considering, among other things, a recommendation from a Special Committee of independent directors. The amendments are intended to provide MID with time to continue to explore a range of alternatives with respect to its MEC investment, including, without limitation, examining potential amendments to the reorganization proposal received by the MID Board of Directors on March 31, 2008 and evaluating whether or to what extent MID might participate in a recapitalization or restructuring of MEC. MID will file a material change report immediately upon filing of this press release. The material change report will be filed less than 21 days before the date of the closing of the amendments, which, in MID's view, is both reasonable and necessary in the circumstances as the terms of the amendments were settled, and approved by MID's Board of Directors, on August 13, 2008, and MEC requires immediate funding to address its short-term liquidity concerns. For more details on the amendments, please refer to the material change report. In addition, the amendments to the Bridge Loan and the Project Financings will be filed by MID on SEDAR at http://www.sedar.com/ and on the SEC's website at http://www.sec.gov/. About MID MID is a real estate operating company focusing primarily on the ownership, leasing, management, acquisition and development of a predominantly industrial rental portfolio for Magna International Inc. and its subsidiaries in North America and Europe. MID also acquires land that it intends to develop for mixed-use and residential projects. MID holds a controlling interest in MEC, North America's number one owner and operator of horse racetracks, based on revenue, and one of the world's leading suppliers, via simulcasting, of live horse racing content to the growing intertrack, off-track and account wagering markets. Forward-Looking Statements This press release contains "forward-looking statements" within the meaning of applicable securities legislation. Forward-looking statements may include, among others, statements relating to the reorganization proposal and the terms and conditions of such proposal. Words such as "may", "would", "could", "will", "likely", "expect", "anticipate", "believe", "intend", "plan", "forecast", "project", "estimate" and similar expressions are used to identify forward-looking statements. Forward-looking statements should not be read as guarantees of future events or results and will not necessarily be accurate indications of whether or the times at or by which such future events 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, 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 such differences include, but are not limited to the risks that the parties may not proceed with the reorganization proposal delivered to the Company on March 31, 2008, and if the parties decide to proceed with a transaction, the terms of such transaction may differ from those that are currently contemplated by the proposed reorganization. Other important factors are set forth in the "Risk Factors" section in MID's Annual Information Form for 2007, filed on SEDAR at http://www.sedar.com/ and attached as Exhibit 1 to MID's Annual Report on Form 40-F for the year ended December 31, 2007, which investors are strongly advised to review. The "Risk Factors" section also contains information about the material factors or assumptions underlying such forward-looking statements. Forward-looking statements speak only as of the date the statements were made and unless otherwise required by applicable securities laws, MID expressly disclaims any intention and undertakes no obligation to update or revise any forward-looking statements contained in this press release to reflect subsequent information, events or circumstances or otherwise. DATASOURCE: MI Developments Inc. CONTACT: about this press release, please contact Richard Smith, MID's Executive Vice-President and Chief Financial Officer, at (905) 726-7507

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