Arlington and Calder Racing Signals No Longer Available to Evansville Off-Track Betting Facility

Churchill Downs Incorporated (“Company”) today announced that it can no longer offer horse racing signals from its owned and operated racetracks to the off-track betting (“OTB”) facility in Evansville, Ind., that is owned and operated by Indiana Downs. Horse racing signals from Arlington Park and Calder Race Course, the two Company tracks that are currently operating live race meets, will not be available at the Evansville wagering outlet effective Aug. 15, 2007.

The Company agreed to discontinue sales of simulcast signals from the racetracks it owns and operates as part of its sales agreement with the new operators of Ellis Park in Henderson, Ky. Churchill Downs Incorporated sold Ellis Park to a company owned by Kentucky businessman Ron Geary in September 2006.

Steve Sexton, who serves as a Company executive vice president as well as president of Churchill Downs racetrack, said talks continued between the Company and Ellis Park’s ownership following the Ellis Park sale regarding whether simulcast signals from racetracks owned by Churchill Downs Incorporated could continue to be distributed to Indiana Downs’ Evansville OTB. While discussions went on for several months, a compromise was not reached, and so the Company directed TrackNet Media Group LLC, the simulcast sales agent for Churchill Downs Incorporated, to stop distributing signals from Arlington Park and Calder Race Course to the Evansville OTB.

“We regret not being able to offer racing signals from Churchill Downs Incorporated tracks to customers of the Evansville OTB,” said Sexton. “The Ellis Park sales agreement was negotiated by members of the Churchill Downs Incorporated management team who are no longer with our Company. When we realized the sales contract required a change in our former signal distribution practices to the Evansville wagering outlet, we tried to find another solution that would be acceptable to both the Ellis Park team and our Company. We were unable to find such a solution.”

Racing signals from Churchill Downs Incorporated racetracks continue to be available through Ellis Park’s simulcast offerings.

Churchill Downs Incorporated (“Churchill Downs”), headquartered in Louisville, Ky., owns and operates world-renowned horse racing venues throughout the United States. Churchill Downs’ four racetracks in Florida, Illinois, Kentucky and Louisiana host many of North America’s most prestigious races, including the Kentucky Derby and Kentucky Oaks, Arlington Million, Princess Rooney Handicap and Louisiana Derby. Churchill Downs racetracks have hosted seven Breeders’ Cup World Championships. Churchill Downs also owns off-track betting facilities and has interests in various advance-deposit wagering, television production, telecommunications and racing services companies, including a 50-percent interest in the national cable and satellite network HorseRacing TV™, that support the Company’s network of simulcasting and racing operations. Churchill Downs trades on the NASDAQ Global Select Market under the symbol CHDN and can be found on the Internet at www.churchilldownsincorporated.com.