Churchill Downs Results Mixed

11 May 2005

LOUISVILLE, Kentucky -- (PRESS RELEASE) -- Churchill Downs Incorporated (Nasdaq: CHDN) today reported results for the first quarter ended March 31, 2005.

Net revenues were $56.3 million, up 49.1 percent compared with $37.7 million for the first quarter of 2004. CDI reported a net loss of $13.9 million, or $1.08 per share, compared with a net loss of $11.7 million, or $0.89 per share, in the same period one-year prior.

CDI historically operates at a loss for the first quarter because it conducts minimal live racing events during the period. With its acquisition of Fair Grounds Race Course in October 2004, the Company added 61 race dates in the first quarter of 2005. However, gains resulting from these additional race dates were offset in part by $2.8 million in legislative spending related to the March 8 alternative gaming ballot initiative in Florida, as well as higher corporate expenses, and fewer simulcast dark days at Arlington Park versus the same period a year ago.

Thomas H. Meeker, CDI's president and chief executive officer, said the Company made important investments in strategic objectives in the quarter that should expand the CDI brand and deliver returns over the long-term. "We advanced or completed a number of brand-extending initiatives that required capital in the first quarter and we believe will impact our top line going forward. We completed our $121 million modernization of Churchill Downs, as well as the build out of our Customer Relationship Management ("CRM") platform. We closed a successful meet at our new Fair Grounds Race Course operation. We continued to advocate for industry-friendly alternative gaming legislation in Florida. We announced a five-year Kentucky Derby sponsorship agreement with Visa USA. Also, we announced the renewal of our Derby broadcast rights with NBC, a network that has shown it can raise the profile of our great event and industry through its excellent coverage and marketing.

"We expect such efforts to deliver growth over the course of several years and have already begun to see some of our investments manifest themselves onto our top line," continued Meeker. "Our first meet at Fair Grounds Race Course, for example, delivered positive results for the first quarter, resulted in the first on- and off-track wagering gains for the track in four years' time, and featured a Louisiana Derby that generated the highest wagering for a single day in state history. Patrons responded very favorably to the first Kentucky Derby and Oaks held in our newly renovated Churchill Downs facility, as demonstrated by the incredible on-track results that included Derby attendance of 156,435, the second-highest ever; on-track wagering of $22.1 million, a new Derby record; and Oaks attendance of 111,243 and on-track wagering of $12.1 million, both records. We are equally thrilled with the success of the Derby across the country, as more than 20 million viewed the race and total wagering on the 131st running amounted to $156 million, topping the North American, single-day wagering record of $143 million set during last year's Derby."

Meeker concluded, "These results, coupled with the roll out of our CRM initiative and Company-wide customer focus, provide us momentum as we transition into the current quarter and the heart of our racing season. The experience garnered from the second quarter should give us a much clearer view of business trends, which we look forward to sharing with you in our disclosures for that period."

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	Churchill Downs Results Mixed 11 May 2005 LOUISVILLE, Kentucky -- (PRESS RELEASE) -- Churchill Downs Incorporated (Nasdaq: CHDN) today reported results for the first quarter ended March 31, 2005. Net revenues were $56.3 million, up 49.1 percent compared with $37.7 million for the first quarter of 2004. CDI reported a net loss of $13.9 million, or $1.08 per share, compared with a net loss of $11.7 million, or $0.89 per share, in the same period one-year prior. CDI historically operates at a loss for the first quarter because it conducts minimal live racing events during the period. With its acquisition of Fair Grounds Race Course in October 2004, the Company added 61 race dates in the first quarter of 2005. However, gains resulting from these additional race dates were offset in part by $2.8 million in legislative spending related to the March 8 alternative gaming ballot initiative in Florida, as well as higher corporate expenses, and fewer simulcast dark days at Arlington Park versus the same period a year ago. Thomas H. Meeker, CDI's president and chief executive officer, said the Company made important investments in strategic objectives in the quarter that should expand the CDI brand and deliver returns over the long-term. "We advanced or completed a number of brand-extending initiatives that required capital in the first quarter and we believe will impact our top line going forward. We completed our $121 million modernization of Churchill Downs, as well as the build out of our Customer Relationship Management ("CRM") platform. We closed a successful meet at our new Fair Grounds Race Course operation. We continued to advocate for industry-friendly alternative gaming legislation in Florida. We announced a five-year Kentucky Derby sponsorship agreement with Visa USA. Also, we announced the renewal of our Derby broadcast rights with NBC, a network that has shown it can raise the profile of our great event and industry through its excellent coverage and marketing. "We expect such efforts to deliver growth over the course of several years and have already begun to see some of our investments manifest themselves onto our top line," continued Meeker. "Our first meet at Fair Grounds Race Course, for example, delivered positive results for the first quarter, resulted in the first on- and off-track wagering gains for the track in four years' time, and featured a Louisiana Derby that generated the highest wagering for a single day in state history. Patrons responded very favorably to the first Kentucky Derby and Oaks held in our newly renovated Churchill Downs facility, as demonstrated by the incredible on-track results that included Derby attendance of 156,435, the second-highest ever; on-track wagering of $22.1 million, a new Derby record; and Oaks attendance of 111,243 and on-track wagering of $12.1 million, both records. We are equally thrilled with the success of the Derby across the country, as more than 20 million viewed the race and total wagering on the 131st running amounted to $156 million, topping the North American, single-day wagering record of $143 million set during last year's Derby." Meeker concluded, "These results, coupled with the roll out of our CRM initiative and Company-wide customer focus, provide us momentum as we transition into the current quarter and the heart of our racing season. The experience garnered from the second quarter should give us a much clearer view of business trends, which we look forward to sharing with you in our disclosures for that period."