Churchill Downs, Inc.

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International Guild of Hospitality & Restaurant Managers

Churchill Downs, Inc. (NasdaqNM:CHDN)

700 Central Avenue
Louisville, KY 40208

Phone: (502) 636-4400
Fax: (502) 636-4430
Email: investors@kyderby.com
Employees (last reported count): 1,300

Churchill Downs Incorporated, incorporated in 1928, is a racing company that conducts pari-mutuel wagering on live Thoroughbred, Quarter Horse and Standardbred horse racing, and simulcasts signals of races. The Company also offers racing services through its other business interests. The Company owns and operates its flagship operation, Churchill Downs racetrack, in Louisville, Kentucky. Churchill Downs has conducted Thoroughbred racing continuously since 1875 and is the home of the Kentucky Derby. The Company's operations also encompass an off-track betting facility (OTB), as well as the management of Ellis Park Race Course, Inc., which oversees a Thoroughbred track in Henderson, Kentucky.

Churchill Downs Management Company (CDMC), a wholly owned subsidiary, manages all of the Company's racing operations. CDMC also manages Hoosier Park at Anderson in Anderson, Indiana (Hoosier Park). Hoosier Park conducts Thoroughbred, Quarter Horse and Standardbred horse racing, and operates three OTBs in Indiana. Hoosier Park is owned by Hoosier Park, L.P. (HPLP), an Indiana limited partnership. Anderson Park, Inc., a wholly owned subsidiary of CDMC, is the sole general partner of HPLP. Anderson owns a 62% interest in HPLP and continues to manage its day-to-day operations. Centaur Racing, LLC owns 38% of HPLP and, through a Partnership Interest Purchase Agreement, has options to purchase additional partnership interests from the Company.

The Company formed Churchill Downs Investment Company (CDIC), a wholly owned subsidiary, to oversee other industry-related investments. CDIC owns a 60% ownership interest in Charlson Broadcast Technologies, LLC, a privately held company that provides television production and computer graphic software to the racing industry.

During January 2002, the Company sold its 35% interest in EquiSource, LLC, a procurement business that assisted in the group purchasing of supplies and services for the equine industry, to the National Thoroughbred Racing Association Inc. CDIC also held a 30% interest in NASRIN Services, LLC, a telecommunications service provider for the pari-mutuel and simulcasting industries, and a 24% interest in Kentucky Downs, LLC, a Franklin, Kentucky, racetrack that conducted a limited Thoroughbred race meet with seven live racing days in September, as well as year-round simulcasting.

Churchill Downs

The Churchill Downs racetrack site and improvements consist of approximately 147 acres of land with a one-mile dirt track, 7/8-mile turf track, permanent grandstands and a stabling area. The facility includes clubhouse and grandstand seating for approximately 48,500 persons, a simulcast wagering facility designed to accommodate 450 persons, a general admission area and food and beverage facilities ranging from fast food to full-service restaurants. The site also has a saddling paddock, infield accommodations for groups and special events, parking areas for the public and the Company's racetrack and corporate office facilities. The backside stable area has barns sufficient to accommodate approximately 1,400 horses, a 114-room dormitory and other facilities for backstretch personnel.

To supplement the facilities at Churchill Downs, the Company provides additional stabling facilities sufficient to accommodate 500 horses and 3/4-mile dirt track, which is used for training Thoroughbreds, at the OTB known as Trackside (formerly the Louisville Sports Spectrum). The facilities provide a year-round base of operation for many horsemen and enable the Company to attract new horsemen to race at Churchill Downs.

Hollywood Park

Hollywood Park and the Hollywood Park Casino site and improvements are located in Inglewood, California. The Hollywood Park facility consists of approximately 240 acres of land upon which the racetrack and casino are located, with a 1 1/8-mile dirt track, a one-mile turf track, permanent grandstands and a stabling area. The facility includes clubhouse and grandstand seating for 16,675 persons, a general admission area, a saddling paddock area and food and beverage facilities ranging from fast food to full-service restaurants. The stabling area consists of stalls to accommodate approximately 2,000 horses, tack rooms, feed rooms, a federally approved quarantine facility, a half-mile training track and a not-for-profit Equine Teaching Hospital and Research Center operated under the direction of the Southern California Equine Foundation. The Hollywood Park facility also features parking areas for the public and office facilities.

The Hollywood Park Casino is a facility that is open 24 hours a day, 365 days a year. The casino features more than 150 gaming tables offering a variety of California-approved casino games. Under California gaming law, the casino is a card club. Thus, it is not authorized to operate slot machines or electronic gaming devices, but instead rents tables to casino patrons for a seat fee charged on a per-hand basis. The casino also offers facilities for simulcast wagering.

Calder Racecourse

The Calder Racecourse racetrack and improvements are located in Miami, Florida. The Calder Racecourse facility is adjacent to Pro Player Stadium, home of the Florida Marlins and Miami Dolphins. The Calder Racecourse facility consists of approximately 220 acres of land with a one-mile dirt track, a 7/8-mile turf track, a training area with a 5/8-mile training track, permanent grandstands and a stabling area. The facility includes clubhouse and grandstand seating for approximately 15,000 persons, a general admission area and food and beverage facilities ranging from fast food to full-service restaurants. The stable area consists of a receiving barn, feed rooms, tack rooms, detention barns and living quarters, and can accommodate approximately 1,800 horses. The Calder Racecourse facility also features a saddling paddock, parking areas for the public and office facilities.

Arlington Park

The Arlington Park racecourse was constructed in 1927 and reopened its doors in 1989 after a fire engulfed the clubhouse four years earlier. The racecourse sits on 325 acres, has a 1 1/8-mile dirt track, a one-mile turf track and a 5/8-mile training track. The facility includes permanent clubhouse, grandstand and suite seating for 6,045 persons and food and beverage facilities ranging from fast food to full-service restaurants. Arlington Park has 34 barns able to accommodate approximately 2,200 horses. The Arlington Park facility also features a saddling paddock, parking areas for the public and office facilities.

Ellis Park

The Ellis Park racetrack and improvements, located in Henderson, Kentucky, consist of approximately 250 acres of land just north of the Ohio River with a 1 1/8-mile dirt track, a one-mile turf track, permanent grandstands and a stabling area for 1,140 horses. The facility includes clubhouse and grandstand seating for 8,000 people, a general admission area and food and beverage facilities ranging from fast food to full-service restaurants. The Ellis Park facility also features a saddling paddock, parking areas for the public and office facilities.

Hoosier Park

Hoosier Park is located in Anderson, Indiana, approximately 40 miles northeast of downtown Indianapolis. Hoosier Park leases the land under a long-term lease with the city of Anderson and owns all of the improvements on the site. The Hoosier Park facility consists of approximately 110 acres of leased land with a 7/8-mile dirt track, permanent grandstands and a stabling area. The facility includes seating for approximately 2,400 persons, a general admission area and food and beverage facilities ranging from fast food to a full-service restaurant. The site also has a saddling paddock, parking areas for the public and office facilities. The stable area has barns sufficient to accommodate 980 horses and other facilities for backstretch personnel.

Hoosier Park's competitors include a new racetrack, Indiana Downs, located approximately 32 miles from Hoosier Park.

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The data included within the Financial section is solely for information and does not construe a recommendation and/or endorsement by IGHRM or its members to invest funds with any of the companies listed. You are strongly advised to obtain professional advice with qualified individuals or corporations for any investments of funds.

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