Churchill Downs' Acquisition of Fair Grounds Race Course Approved

LOUISVILLE, Kentucky – (PRESS RELEASE) -- The U.S. Bankruptcy Court, Eastern District of Louisiana, today approved Churchill Downs Incorporated's (Nasdaq: CHDN) $47 million acquisition of the Fair Grounds Race Course ("Fair Grounds"). CDI, the Fair Grounds Corporation, the Louisiana Horseman's Benevolent and Protective Association and other parties involved are expected to close the transaction on or before Oct. 15, 2004.

Thomas H. Meeker, CDI's president and chief executive officer, called the court's ruling "a welcome ending to a lengthy process and the advent of a new era for the Fair Grounds, CDI and the New Orleans community."

"The bankruptcy court's ruling today brought us one step closer to achieving what we believe is an excellent strategic fit between Fair Grounds and CDI and an ideal entree for our Company into a city and state with such a rich racing heritage," said Meeker. "The Fair Grounds' tradition, quality racing and winter-race schedule are well complemented by CDI's operational expertise, industry-leading brand and simulcast network.

"Going forward, we will now turn our focus on closing the transaction, immersing ourselves into the New Orleans community and supporting the Fair Grounds staff in delivering an outstanding 2004-2005 meet," Meeker continued. "We will look to the continued guidance and involvement of Fair Grounds management as we undertake this important transition process and begin building what we believe will be a long and prosperous partnership with employees, patrons, horsemen and the community at large."

Should the acquisition close successfully on or before Oct. 15, 2004, Fair Grounds and its 10 off-track betting facilities would become the seventh racetrack operation owned by CDI. Fair Grounds' upcoming 82-day meet will run from Nov. 25, 2004, through March 27, 2005.

Churchill Downs Incorporated, headquartered in Louisville, Ky., owns and operates world-renowned horseracing venues throughout the United States. The Company's racetracks in California, Florida, Illinois, Indiana and Kentucky host 114 graded-stakes events and many of North America's most prestigious races, including the Kentucky Derby and Kentucky Oaks, Hollywood Gold Cup and Arlington Million. CDI racetracks have hosted nine Breeders' Cup World Thoroughbred Championships -- more than any other North American racing company. CDI also owns off-track betting facilities and has interests in various television production, telecommunications and racing services companies that support CDI's network of simulcasting and racing operations. CDI trades on the Nasdaq National Market under the symbol CHDN and can be found on the Internet at http://www.churchilldownsincorporated.com .

New Orleans, La.-based Fair Grounds Race Course, the nation's third oldest Thoroughbred racetrack, operates one of the top winter racing circuits in the country. Its 133rd season, scheduled Nov. 25, 2004 through March 27, 2005, will present 56 stakes races -- including nine graded stakes events -- offering more than $6 million in purses.