Churchill Downs reports acquisitions

12 Jun 2007

LOUISVILLE, Kentucky -- (PRESS RELEASE) -- Churchill Downs Incorporated (NASDAQ: CHDN) today announced that through two separate acquisitions, the Company has acquired certain assets of AmericaTAB, Bloodstock Research Information Services ("BRIS") and the Thoroughbred Sports Network ("TSN") for an aggregate purchase price of $80 million, plus potential earn-out payments of up to $7 million. The all-cash transactions, which closed June 11, 2007, include the acquisition of the following advance-deposit wagering ("ADW") platforms:

* Winticket.com

* BrisBET.com

* TsnBET.com

Through these transactions, Churchill Downs has also acquired the operations of an industry-leading data services company, BRIS and TSN, which produce handicapping and pedigree reports that are sold to racetracks, horse owners and breeders, horseplayers and racing-related publications.

Robert L. Evans, the Company's president and chief executive officer, said the acquisitions position Churchill Downs for growth in the ADW market, which continues to be the fastest-growing segment of the pari-mutuel industry. "AmericaTAB, BRIS and their affiliates have proven to be some of the most efficiently operated and customer-focused ADW platforms and data services in the industry and will be a great complement to our newly launched TwinSpires account-wagering service," stated Evans. "We anticipate the ADW businesses we have acquired should generate approximately $175 million in handle and approximately $43.6 million in revenue in 2008 and to become accretive to earnings in 2008.

"We look forward to offering all of our ADW account holders benefits through our player-rewards program, the Twin Spires Club, as well as the high-quality handicapping and pedigree information generated by BRIS and TSN. The rich data provided by these information services will be a tremendous resource to customers of all Churchill Downs-operated ADW platforms, including TwinSpires, and will further distinguish our account wagering services from their competitors.

"We also look forward to serving handicappers as well as horse owners, breeders, trainers and bloodstock experts through the BRIS and TSN data services," continued Evans. "Horsemen and horseplayers from all walks of life find BRIS and TSN data products invaluable as they make everyday decisions in the horse racing business. We are pleased to add these well-respected organizations to Churchill Downs' stable of companies."

Happy Broadbent, who previously managed the BRIS family of companies, will join Churchill Downs as a corporate vice president and serve as general manager of Winticket.com and the AmericaTAB operations being acquired, as well as BrisBET.com, TsnBET.com and the BRIS and TSN data services. Broadbent will report directly to Vernon Niven, executive vice president of technology initiatives for the Company and president of the TwinSpires account-wagering platform.

"We are excited to become part of North America's most successful horse racing company, Churchill Downs Incorporated," said Broadbent. "Over the years, the AmericaTAB- and BRIS-affiliated businesses have developed very loyal customers, and we want to assure our account holders and data subscribers that the ADW platforms and information services will continue to operate as they have in the past. We anticipate no significant changes to the ADW services Winticket.com, BrisBET.com and TsnBET.com or to the data sites www.brisnet.com and www.tsnhorse.com. All of these online sites will continue to operate under their existing brands and offer the same quality products and services that our customers have come to expect.

"Additionally, we look forward to enhancing all three ADW platforms by offering customers membership, points and privileges through Churchill Downs' industry-leading Twin Spires Club, as well as offering BRIS and TSN handicapping tools to TwinSpires customers," concluded Broadbent.

There are several regional AmericaTAB-affiliated account-wagering services based at racetracks not owned by Churchill Downs that are not included in the sales transactions. These regional ADW companies will retain their current ownership and management structure. Churchill Downs will provide the regional affiliates with the same franchisee services that AmericaTAB provided.

BRIS, which currently employs approximately 90 staff members, will maintain its current offices in Lexington, Ky. No staffing changes are currently anticipated as a result of the acquisitions.

Churchill Downs will finance the aggregate $80 million purchase price with a $50 million loan from the Company's revolving line of credit and with $30 million in cash.

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	Churchill Downs reports acquisitions 12 Jun 2007 <a href='https://ad.casinocity.com/adclick.php?n=a21efcd1'><img src='https://ad.casinocity.com/adview.php?what=-site:vendors/width:250/RON&n=a21efcd1' border='0' alt='' /></a> LOUISVILLE, Kentucky -- (PRESS RELEASE) -- Churchill Downs Incorporated (NASDAQ: CHDN) today announced that through two separate acquisitions, the Company has acquired certain assets of AmericaTAB, Bloodstock Research Information Services ("BRIS") and the Thoroughbred Sports Network ("TSN") for an aggregate purchase price of $80 million, plus potential earn-out payments of up to $7 million. The all-cash transactions, which closed June 11, 2007, include the acquisition of the following advance-deposit wagering ("ADW") platforms: * Winticket.com * BrisBET.com * TsnBET.com Through these transactions, Churchill Downs has also acquired the operations of an industry-leading data services company, BRIS and TSN, which produce handicapping and pedigree reports that are sold to racetracks, horse owners and breeders, horseplayers and racing-related publications. Robert L. Evans, the Company's president and chief executive officer, said the acquisitions position Churchill Downs for growth in the ADW market, which continues to be the fastest-growing segment of the pari-mutuel industry. "AmericaTAB, BRIS and their affiliates have proven to be some of the most efficiently operated and customer-focused ADW platforms and data services in the industry and will be a great complement to our newly launched TwinSpires account-wagering service," stated Evans. "We anticipate the ADW businesses we have acquired should generate approximately $175 million in handle and approximately $43.6 million in revenue in 2008 and to become accretive to earnings in 2008. "We look forward to offering all of our ADW account holders benefits through our player-rewards program, the Twin Spires Club, as well as the high-quality handicapping and pedigree information generated by BRIS and TSN. The rich data provided by these information services will be a tremendous resource to customers of all Churchill Downs-operated ADW platforms, including TwinSpires, and will further distinguish our account wagering services from their competitors. "We also look forward to serving handicappers as well as horse owners, breeders, trainers and bloodstock experts through the BRIS and TSN data services," continued Evans. "Horsemen and horseplayers from all walks of life find BRIS and TSN data products invaluable as they make everyday decisions in the horse racing business. We are pleased to add these well-respected organizations to Churchill Downs' stable of companies." Happy Broadbent, who previously managed the BRIS family of companies, will join Churchill Downs as a corporate vice president and serve as general manager of Winticket.com and the AmericaTAB operations being acquired, as well as BrisBET.com, TsnBET.com and the BRIS and TSN data services. Broadbent will report directly to Vernon Niven, executive vice president of technology initiatives for the Company and president of the TwinSpires account-wagering platform. "We are excited to become part of North America's most successful horse racing company, Churchill Downs Incorporated," said Broadbent. "Over the years, the AmericaTAB- and BRIS-affiliated businesses have developed very loyal customers, and we want to assure our account holders and data subscribers that the ADW platforms and information services will continue to operate as they have in the past. We anticipate no significant changes to the ADW services Winticket.com, BrisBET.com and TsnBET.com or to the data sites www.brisnet.com and www.tsnhorse.com. All of these online sites will continue to operate under their existing brands and offer the same quality products and services that our customers have come to expect. "Additionally, we look forward to enhancing all three ADW platforms by offering customers membership, points and privileges through Churchill Downs' industry-leading Twin Spires Club, as well as offering BRIS and TSN handicapping tools to TwinSpires customers," concluded Broadbent. There are several regional AmericaTAB-affiliated account-wagering services based at racetracks not owned by Churchill Downs that are not included in the sales transactions. These regional ADW companies will retain their current ownership and management structure. Churchill Downs will provide the regional affiliates with the same franchisee services that AmericaTAB provided. BRIS, which currently employs approximately 90 staff members, will maintain its current offices in Lexington, Ky. No staffing changes are currently anticipated as a result of the acquisitions. Churchill Downs will finance the aggregate $80 million purchase price with a $50 million loan from the Company's revolving line of credit and with $30 million in cash.