Churchill Downs Incorporated Enters Into Joint Stipulation And Consent Order With Jockeys' Guild Inc.

Churchill Downs Incorporated ("CDI" or "Company") (NASDAQ: CHDN) this week entered into a Joint Stipulation and Consent Order ("Order") with the Jockeys' Guild Inc. ("Guild") in U.S. District Court, Western District of Kentucky. In exchange, CDI has withdrawn its motion for Preliminary Injunction as part of its ongoing lawsuit against the Jockeys' Guild.

According to the Order signed by Judge John Heyburn, the Jockeys' Guild has agreed to instruct its directors, senators, officers, employees and member representatives to

1.) not engage in any activity that could directly or indirectly result in an effort to fix, increase, stabilize or otherwise affect the level of consideration for jockey services in Thoroughbred races, including but not limited to the level of insurance for jockeys; and

2.) not engage in any activity that could directly or indirectly encourage, suggest or advise jockeys, who are independent contractors, to refuse to provide jockey services at Thoroughbred racetracks operated by CDI, or interfere with the Company and its business operations.

On March 3, 2005, CDI filed suit against the Guild, seeking injunctions that would restrain and prohibit the Guild and its representatives from boycott and price-fixing activities in violation of the Sherman Act and KRS 367.175(1). The lawsuit asks the court to find the Guild's activities on Nov. 7, 2004, at Churchill Downs and Nov. 12, 2004, at Hoosier Park illegal and in violation of anti-trust laws. The lawsuit states that in each instance, the Guild directed jockey boycotts aimed at disrupting business at a CDI facility. The Nov. 12 action at Hoosier resulted in the cancellation of the race card and the issuance of admission and program refunds to patrons. A trial date for the case has yet to be determined.

"Churchill Downs Incorporated was prepared to seek a Preliminary Injunction prior to our case going to trial and prior to the opening of our spring Thoroughbred meets to ensure our operations, including the 131st Kentucky Oaks and Kentucky Derby, would go forward without incident," said Andrew G. Skehan, CDI's executive vice president and chief operating officer. "The Joint Stipulation and Consent Order now in place gives us that assurance as we prepare for the start of our 2005 Thoroughbred racing seasons at Arlington Park, Calder Race Course, Churchill Downs and Hollywood Park."