Scientific Games sells communications business

15 Mar 2007

NEW YORK -– (PRESS RELEASE) -- Scientific Games (Nasdaq:SGMS) announced today that it has sold its racing communications business to Roberts Communications Network, LLC of Las Vegas, Nevada (Roberts). The sale includes the simulcast transmission division of Scientific Games Racing, LLC (SGR) and a 70% membership interest in the SGR data communications business known as NASRIN(TM) (North American Simulcast Racing Information Network). Churchill Downs (Nasdaq:CHDN), through one of its wholly-owned subsidiaries, owns the remaining 30% membership interest in NASRIN(TM). Both the SGR simulcast transmission division and the 70% membership interest in NASRIN(TM) will be contributed to Roberts in exchange for a 29.4% membership interest in Roberts as consideration. Roberts will retain a 70.6% membership interest.

Roberts will continue to operate the business with Todd Roberts remaining as the company's President and CEO, and Joseph Hill continuing as its Vice President.

The transaction will create certain economic and operational synergies which are expected to be put to use as follows:

    *  Creation of a state of the art delivery platform which more effectively
       provides content to all types of devices including televisions,
       computers and mobile phones.

    *  Increased content distribution to and from domestic and international
       locations, (both commercial and residential), by extending the coverage
       area of the delivery platform.

    *  Tightened security to reduce signal piracy and illegal uses of the
       content.

    *  Improvement of the quality of service to a "Six Sigma" level to reduce
       revenue loss caused by downtime.

    *  Automation of the customer interface aspects of the delivery platform
       such as scheduling, inventory control and accounting to make the
       services more user-friendly.

    *  Accelerated implementation of the above to increase pari-mutuel
       wagering handle and thereby revenue for the racing industry.

These additional benefits will not only be available to the racing industry but also to the many non-racing customers which Roberts currently serves and intends to pursue in the sports, entertainment, educational, and ethnic programming industries.

"The racing industry will benefit from a more comprehensive network for both the televising of the races and the transmission of betting information," said Lorne Weil, Chairman and CEO of Scientific Games.

"This transaction facilitates our ability to implement a new global delivery platform to distribute content, whether it be audio, video or data, in a future-proof fashion that will accelerate the industry's race to improve its bottom line." said Todd Roberts, President and CEO of Roberts Communications Network.

The Scientific Games racing communications divisions accounted for approximately $13 million of revenue in 2006. Income statement contribution from the divisions will now be reported as equity income, and Scientific Games expects the transaction to be accretive to earnings.

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	Scientific Games sells communications business 15 Mar 2007 NEW YORK -– (PRESS RELEASE) -- Scientific Games (Nasdaq:SGMS) announced today that it has sold its racing communications business to Roberts Communications Network, LLC of Las Vegas, Nevada (Roberts). The sale includes the simulcast transmission division of Scientific Games Racing, LLC (SGR) and a 70% membership interest in the SGR data communications business known as NASRIN(TM) (North American Simulcast Racing Information Network). Churchill Downs (Nasdaq:CHDN), through one of its wholly-owned subsidiaries, owns the remaining 30% membership interest in NASRIN(TM). Both the SGR simulcast transmission division and the 70% membership interest in NASRIN(TM) will be contributed to Roberts in exchange for a 29.4% membership interest in Roberts as consideration. Roberts will retain a 70.6% membership interest. Roberts will continue to operate the business with Todd Roberts remaining as the company's President and CEO, and Joseph Hill continuing as its Vice President. The transaction will create certain economic and operational synergies which are expected to be put to use as follows: * Creation of a state of the art delivery platform which more effectively provides content to all types of devices including televisions, computers and mobile phones. * Increased content distribution to and from domestic and international locations, (both commercial and residential), by extending the coverage area of the delivery platform. * Tightened security to reduce signal piracy and illegal uses of the content. * Improvement of the quality of service to a "Six Sigma" level to reduce revenue loss caused by downtime. * Automation of the customer interface aspects of the delivery platform such as scheduling, inventory control and accounting to make the services more user-friendly. * Accelerated implementation of the above to increase pari-mutuel wagering handle and thereby revenue for the racing industry. These additional benefits will not only be available to the racing industry but also to the many non-racing customers which Roberts currently serves and intends to pursue in the sports, entertainment, educational, and ethnic programming industries. "The racing industry will benefit from a more comprehensive network for both the televising of the races and the transmission of betting information," said Lorne Weil, Chairman and CEO of Scientific Games. "This transaction facilitates our ability to implement a new global delivery platform to distribute content, whether it be audio, video or data, in a future-proof fashion that will accelerate the industry's race to improve its bottom line." said Todd Roberts, President and CEO of Roberts Communications Network. The Scientific Games racing communications divisions accounted for approximately $13 million of revenue in 2006. Income statement contribution from the divisions will now be reported as equity income, and Scientific Games expects the transaction to be accretive to earnings.