Churchill Downs Incorporated, Magna Entertainment Corp. and Racing UK Reach Definitive Agreement on New Television Service

Churchill Downs Incorporated (“CDI”) (NASDAQ: CHDN), Magna Entertainment Corp. (“MEC”) (NASDAQ: MECA, TSX: MEC.SV.A) and Racing UK today announced that the three organizations have reached a definitive agreement to partner in a subscription television channel that will broadcast races from CDI and MEC racetracks, as well as other North American and international racetracks, into the United Kingdom and Ireland.

The new television channel, Racing World, launched March 8, offering live racing from Golden Gate Fields, Gulfstream Park, Laurel Park, Oaklawn Park, Santa Anita Park and Turfway Park. During the spring and summer, Racing World will expand its offerings when live racing resumes at Arlington Park, Bay Meadows Race Course, Calder Race Course, Churchill Downs, Hollywood Park, Keeneland Race Course, Lone Star Park and Pimlico Race Course.

MEC and CDI will provide racing content to Racing World while Racing UK will manage day-to-day operations for the channel. Racing UK is a media rights company and subscription television channel owned by 31 leading British racecourses.

As part of the agreement, CDI, MEC and Racing UK will take ownership positions in Racing World with MEC and CDI contributing their respective in-home video and wagering rights in the United Kingdom and Ireland. Neither CDI nor MEC expect revenues generated by Racing World to have a material impact on their companies’ respective earnings or cash flow in 2006.

Racing World is available to subscribers in the United Kingdom and Ireland on Sky Channel 433 and airs until 1 a.m. GMT six nights a week (Wednesdays through Mondays).

Churchill Downs Incorporated (“CDI”), headquartered in Louisville, Ky., owns and operates world-renowned horse racing venues throughout the United States. CDI’s six racetracks in Florida, Illinois, Indiana, Kentucky and Louisiana host many of North America’s most prestigious races, including the Kentucky Derby and Kentucky Oaks, Arlington Million and Louisiana Derby. CDI racetracks have hosted six Breeders’ Cup World Thoroughbred Championships. 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 www.churchilldownsincorporated.com.

Magna Entertainment Corp. (“MEC”) is North America’s largest owner and operator of horse racetracks, based on revenue. It develops, owns and operates horse racetracks and related pari-mutuel wagering operations, including off-track betting facilities. In 2005, MEC created PariMax Inc., a subsidiary that oversees its various electronic distribution platforms, including XpressBetÒ, a national Internet and telephone account wagering system, and Horse Racing TVÒ, a 24-hour horse racing television network, as well as RaceONTVÔ and MagnaBetÔ internationally.

Racing UK is a media rights management company, wholly owned by 31 British racecourses, that was established in May 2004. It has launched a successful subscription TV channel for the United Kingdom and Ireland, which covers all the live racing at its licensor racecourses. By the end of 2005, the channel had signed up almost double the number of paying subscribers originally planned. Racing UK has also formed an international TV venture called “Racing International” to distribute live British racing pictures around the world, and has launched a broadband video and wagering service for the UK, www.theBettingSite.co.uk, in partnership with the Racing Post, Britain’s national daily racing newspaper.

Information set forth in this news release contains various "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The Private Securities Litigation Reform Act of 1995 provides certain "safe harbor" provisions for forward-looking statements. The reader is cautioned that such forward-looking statements are based on information available at the time and/or management’s good faith belief with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statements. Forward-looking statements speak only as of the date the statement was made. CDI and MEC assume no obligation to update forward-looking information to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information. Forward-looking statements are typically identified by the use of terms such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "might," "plan," "predict," "project," "should," "will," and similar words, although some forward-looking statements are expressed differently. Although MEC and CDI believe that the expectations reflected in such forward-looking statements are reasonable, CDI and MEC can give no assurance that such expectations will prove to be correct. Important factors that could cause actual results to differ materially from expectations include: the effect of global economic conditions; the effect (including possible increases in the cost of doing business) resulting from future war and terrorist activities or political uncertainties; the economic environment; the impact of increasing insurance costs; the impact of interest rate fluctuations; the effect of any change in our accounting policies or practices; the financial performance of our companies’ racing operations; the impact of gaming competition (including lotteries and riverboat, cruise ship and land-based casinos) and other sports and entertainment options in those markets in which our companies operate; the impact of live racing day competition with other racetracks in the jurisdictions in which our companies operate; costs associated with our companies’ efforts in support of alternative gaming initiatives; costs associated with Customer Relationship Management or other marketing initiatives; a substantial change in law or regulations affecting pari-mutuel and gaming activities; a substantial change in allocation of live racing days; our companies’ continued ability to effectively compete for the country’s top horses and trainers necessary to field high-quality horse racing; our companies’ continued ability to grow our share of the interstate simulcast market; our companies’ ability to execute acquisition strategies and to complete or successfully operate planned expansion projects; our companies’ ability to successfully complete any divestiture transaction; our companies’ ability to adequately integrate acquired businesses; market reaction to our companies’ expansion projects; any business disruption associated with facility renovations or construction at our companies’ operations; the loss of industry totalisator companies or their inability to provide our companies with assurance of the reliability of their internal control processes through Statement on Auditing Standards No. 70 audits or to keep their technology current; the need for various alternative gaming approvals in states where our companies operate; our companies’ accountability for environmental contamination; the loss of key personnel; the impact of natural disasters, including severe weather on our companies’ operations and the extent of our companies’ property and business interruption insurance coverage for any related losses; any business disruption associated with a natural disaster and/or its aftermath; and the volatility of our companies’ stock price.