Churchill Downs Incorporated (NASDAQ: CHDN) (“CDI”) has reached an agreement with the Kentucky Horse Racing Authority (“KHRA”) regarding procedures followed for assigning assistant starters during Kentucky Derby 134 on Saturday, May 3, 2008. CDI has agreed to pay an administrative assessment of $15,000, but does not admit any wrongdoing as part of the agreement.

The review of CDI procedures followed the assignment of an assistant starter to a specific horse for Kentucky Derby 134. As part of the review, the KHRA determined there was no evidence of inappropriate behavior by the assistant starter during the loading.

“The questions raised concerned the procedures by which staff are hired and assigned to start a race,” said Steve Sexton, president of Churchill Downs racetrack and executive vice president of Churchill Downs Incorporated. “We were eager to cooperate in the review and to swiftly address the KHRA’s concerns regarding these procedures. We believe this agreement is an acceptable resolution for both the KHRA and Churchill Downs. We are particularly satisfied with their conclusion that the actual running of Kentucky Derby 134 was handled appropriately.”

Churchill Downs Incorporated (“Churchill Downs”), headquartered in Louisville, Ky., owns and operates world-renowned horse racing venues throughout the United States. Churchill Downs’ four racetracks in Florida, Illinois, Kentucky and Louisiana host many of North America’s most prestigious races, including the Kentucky Derby and Kentucky Oaks, Arlington Million, Princess Rooney Handicap and Louisiana Derby. Churchill Downs racetracks have hosted seven Breeders’ Cup World Championships. Churchill Downs also owns off-track betting facilities and has interests in various advance-deposit wagering, television production, telecommunications and racing services companies, including a 50-percent interest in the national cable and satellite network HorseRacing TV™, that support the Company’s network of simulcasting and racing operations. Churchill Downs trades on the NASDAQ Global Select Market under the symbol CHDN and can be found on the Internet at www.churchilldownsincorporated.com.