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Churchill Downs sells interest in Hoosier Park

LOUISVILLE, Kentucky -- (PRESS RELEASE) -- Churchill Downs Incorporated (NASDAQ: CHDN) and Centaur Inc. ("Centaur") today announced that the two companies had reached a definitive agreement for CDI to sell its remaining 62-percent ownership interest in Hoosier Park LP to Centaur, a privately held, Indiana-based company. Financial terms were not disclosed because the transaction is not material to CDI's results of operations.

Hoosier Park LP ("Hoosier Park") owns the Anderson, Ind., racetrack and its three Indiana off-track betting ("OTB") parlors located in Indianapolis, Merrillville and Fort Wayne. Centaur has owned 38-percent of Hoosier Park since December 2001 and has held options to purchase a greater stake in the track and its OTBs.

Per the agreement, Centaur will assume management responsibility for Hoosier Park and its off-track betting network, while the Churchill Downs Simulcast Network will continue to distribute the Hoosier Park signal. The transaction is subject to the approval of the Indiana Horse Racing Commission and the City of Anderson Department of Parks and Recreation and is expected to close during the first quarter of 2007.

CDI's President and Chief Executive Officer Robert L. Evans said the transaction makes strategic sense for both companies and Hoosier Park. "We are pleased to sell CDI's remaining interest in Hoosier Park to Centaur, which has been our partner in the Hoosier Park operation for a number of years and who remains firmly committed to Indiana horse racing," said Evans. "When CDI secured an Indiana racing license and completed the construction of Hoosier Park in 1994, the Company was focused on acquiring racetracks and content for our simulcast network. Our Company has grown significantly since that time, and Hoosier Park is no longer a strategic asset for us. We believe Hoosier Park will benefit from having an Indiana owner that is fully focused on growing the Indiana horse racing industry and improving the track's financial prospects."

"Centaur is excited to take full ownership of Hoosier Park and bring Indiana's first horse racing track under the leadership of an Indiana company," said Centaur President Jeffrey Smith. "We thank Churchill Downs Incorporated for its investment in the racing operation and its stewardship over the years, and we look forward to working with Hoosier Park President Rick Moore and his team of employees, our horsemen, Indiana government officials and the Anderson community on a plan for growth."

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