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Churchill Downs to Sell Portion of Hoosier Park

The purchase price for the 15 percent stake is $4.5 million. The transaction is subject to certain closing conditions, including the approval of the Indiana Horse Racing Commission and various regulatory agencies. It is also contingent upon Centaur purchasing the entire 10 percent interest in Hoosier Park held by Conseco HPLP, LLC, a current limited partner.

Upon closing, CDMC will retain a 62 percent interest in Hoosier Park and continue to manage its day-to-day operations. Indiana-based Centaur, which currently owns 13 percent of Hoosier Park, will own 38 percent with options to purchase additional CDMC partnership interests.

Thomas H. Meeker, CDI's president and chief executive officer, said, ``We continue to view an increased ownership by Centaur as being beneficial to the Company and Hoosier Park. The transaction is not expected to have a material impact on our earnings, and we have the opportunity to realize a cash return on a portion of our investment in the racetrack.

``Hoosier Park will gain increased local ownership that is essential to its success. A larger ownership interest by Indiana-based Centaur will enhance Hoosier Park's ability to succeed in the face of competition from a second track in the Indianapolis area and a possible reduction in the riverboat subsidy. We believe this transaction is an important step toward ensuring the long-term prospects for this track and for Indiana horse racing.''

Churchill Downs Incorporated -- headquartered in Louisville, Ky. -- is one of the world's leading horse racing companies. The Company owns racetracks in California, Florida, Illinois and Kentucky and has interests in a pari-mutuel operation in Indiana as well as various racing services companies. The Company's racetracks annually conduct 109 graded-stakes events and host many of North America's most prestigious races, including the Kentucky Derby and Kentucky Oaks, Hollywood Gold Cup and Arlington Million.

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