LOUISVILLE, Ky.-- Sept. 23, 2005--Churchill Downs Incorporated and Bay Meadows Land Company LLC today announced that CDI has completed the sale of Hollywood Park racetrack and surrounding acreage to Hollywood Park Land Company, an affiliate of BMLC, for $257.5 million.

Hollywood Park Land Company, LLC and Hollywood Park Racing Association are affiliates of Bay Meadows Land Company, the owner and operator of the Bay Meadows Racetrack in San Mateo, Calif., and developer of Park Place, an award-winning mixed-use development that was built on a 79-acre portion of the Bay Meadows site that previously encompassed a stable area and training track. Bay Meadows Land Company is owned by Stockbridge Real Estate Fund, LP, a privately owned investment partnership.

HPRA has committed to continuing live racing at Hollywood Park for a minimum of three years and will aggressively pursue legislative changes to improve economic conditions for the horse racing industry in California. HPLC will also seek entitlements from the City of Inglewood to permit alternative uses for the current Hollywood Park racetrack site, in the event that efforts to seek authorization for expanded gaming activities at California racetracks are unsuccessful.

Over the next three years, CDI will distribute the Hollywood Park simulcast signal through its Churchill Downs Simulcast Network ("CDSN"). CDSN will also distribute the simulcast signal for BMLC's racetrack in Northern California, Bay Meadows. CDI will have an option to reinvest in Hollywood Park should significant gaming activities become available at Hollywood.

CDI acquired Hollywood Park in September 1999 for $140 million from Hollywood Park Inc., which now does business as Pinnacle Entertainment Inc. Since that time, CDI has operated two race meets annually on the 238-acre site and leased space to Pinnacle Entertainment for the operation of a card club.