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Churchill Downs Acquires Majority Interest In Video Services Company

Churchill Downs controls a 60 percent interest of the newly formed company, while Charlson Industries owns the remaining interest.

The foundation for the partnership was laid in September 1998 when Churchill Downs announced that it was negotiating a purchase agreement with Charlson Industries, an existing video services provider. Churchill Downs anticipates its total investment in the venture (including the purchase price, capital commitments and contingent payments) will not exceed $8 million. Under the agreement, which was approved January 13, Charlson Broadcast Technologies will own all the assets formerly controlled by Charlson Industries.

The new company will continue its development and service of a software package, currently used by more than 20 racetracks. The software merges data such as video, wagering data, timing, race calls, statistics and changes into one television product for distribution to in-house patrons and off-track betting facilities. The company will also continue to provide video production services to U.S. racetracks such as Ellis Park Race Course and Turfway Park. Those services include simulcast signal production, software development, hardware sales and deployment of personnel to client tracks.

Churchill Downs President and CEO Thomas H. Meeker recognizes big benefits for both owners. "This acquisition is strategically significant to both Churchill Downs and Charlson Broadcast Technologies," Meeker explained. "Charlson Industries has been a recognized leader in the simulcast video industry. The quality of the video services it has developed will be instrumental to Churchill Downs as we strive toward our goal of developing a year-round simulcast signal.

"An added benefit is Charlson Broadcast Technologies' ability to develop simulcast graphic software that effectively meets the needs of racetracks. This competitive advantage will be important to the Thoroughbred industry as it continues to consolidate and strengthen. The transaction will enable Charlson Broadcast Technologies to continue its growth, and we welcome its employees to the Churchill Downs' family."

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