Churchill Downs, Magna Entertainment Join Empire Racing Team; Agreement Helps Achieve Goal of ''Home Grown, World Class'' Racing in New York

Business Wire, August 16, 2006

SARATOGA SPRINGS, N.Y. -- Churchill Downs Incorporated (NASDAQ: CHDN) and Magna Entertainment Corp. (NASDAQ: MECA) two of horse racing's most accomplished organizations, have joined the Empire Racing team that is bidding to operate New York State's thoroughbred racetracks at Saratoga, Belmont, and Aqueduct, Empire Racing announced today.

The news was hailed by representatives of New York breeders, owners and trainers.

"Empire Racing has done what many thought impossible - they have unified the industry," said trainer Rick Violette, President of the Thoroughbred Horsemen's Association, a national group, and Vice President of the New York Thoroughbred Horsemen's Association. "First they unified the thoroughbred industry in New York State by including Finger Lakes Racetrack. Now, by having Churchill and Magna participate on a team led by New Yorkers for the benefit of New York horsemen, Empire Racing has unified the overall industry and will create a bright future for racing, particularly here in New York."

Empire Racing CEO Jeff Perlee said the agreement provides additional key components for Empire's bid for the New York thoroughbred racing franchise.

"Our mission is to provide New Yorkers with racing that is both home grown and world class," Perlee said. "The addition of these two great organizations to our team achieves that mission and prepares us to present the strongest possible bid to the state."

"Empire Racing was formed by a group of dedicated and innovative New Yorkers determined to create a bright future for racing in their home state," said Magna Entertainment Chairman Frank Stronach. "Magna Entertainment and Churchill Downs share Empire's outlook on New York racing and by pooling our collective talents and resources, our companies can assist Empire Racing and its impressive list of partners with what we hope will be a successful bid for the New York racetrack franchise."

"By joining the Empire team, we have the opportunity to bring greater consistency to the quality and integrity of racing across the United States, to better market racing to new fans throughout the year and to take U.S. racing into the global market in a powerful way," said Churchill Downs President and CEO Robert Evans. "Empire represents an across-the-board win for the citizens of New York, New York horsemen and racing fans everywhere."

Empire Racing has previously announced the support of Delaware North Companies, Woodbine Entertainment and Scientific Games.

Churchill Downs and Magna are global leaders in staging and promoting big-day racing events and will bring that expertise to Empire Racing's bid. New York decision makers have identified the need to attract more "big day" crowds as an area of need and focus for any new franchise operator.

In May, Magna hosted more than 118,000 fans at the Preakness Stakes while Churchill Downs attracted more than 150,000 fans for the Kentucky Derby, one of the world's premier sporting events.

The Empire bid would bring together the three Triple Crown races - the Kentucky Derby, the Preakness Stakes and New York's Belmont Stakes. Under the agreement, Empire Racing would also cooperate with Churchill Downs and Magna in marketing all three Triple Crown races - a move that would increase fan attention and interest.

As part of the agreement, Churchill Downs and Magna will each receive one seat on Empire Racing's 15-member board.

About Empire Racing

Empire Racing is a group of visionary New York horsemen and breeders seeking to revive NY racing by securing the exclusive right to operate the three New York thoroughbred racetracks (Aqueduct, Belmont and Saratoga). Exclusively supported by the New York Thoroughbred Horsemen's Association, Empire Racing represents the interests of the 6,000 owners, trainers, and farmers who provide New York State with $1.4 billion in economic impact, 17,000 jobs and preservation of 44,000 acres of open green space. More on Empire Racing can be found at www.empireracingny.com.

About Churchill Downs Incorporated

Churchill Downs Incorporated ("CDI"), headquartered in Louisville, Ky., owns and operates world-renowned horse racing venues throughout the United States. CDI's six racetracks in Florida, Illinois, Indiana, Kentucky and Louisiana host many of North America's most prestigious races, including the Kentucky Derby and Kentucky Oaks, Arlington Million and Louisiana Derby. CDI racetracks have hosted six Breeders' Cup World Thoroughbred Championships. CDI also owns off-track betting facilities and has interests in various television production, telecommunications and racing services companies that support CDI's network of simulcasting and racing operations. CDI trades on the NASDAQ National Market under the symbol CHDN and can be found on the Internet at www.churchilldownsincorporated.com.

About Magna Entertainment Corp.

Magna Entertainment Corp. ("MEC") is North America's largest owner and operator of horse racetracks, based on revenue. It develops, owns and operates horse racetracks and related pari-mutuel wagering operations, including off-track betting facilities. In 2005, MEC created PariMax Inc., a subsidiary that oversees its various electronic distribution platforms, including XpressBet(R), a national Internet and telephone account wagering system, and Horse Racing TV(R), a 24-hour horse racing television network, as well as RaceONTV(TM) and MagnaBet(TM) internationally. MEC trades on the NASDAQ National Market under the symbol MECA and can be found on the Internet at www.magnaentertainment.com.