New Partnership for More Horse Racing Viewership

Internationally horse racing is set to get even more global. Horse racing from several race courses are broadcast live to many countries of the world. A new television channel, Racing World owned by Racing UK, was launched in early March this year and has proved to be very popular with racegoers who have the opportunity to watch live horse racing from several venues including Golden Gate Fields, Gulfstream Park, Laurel Park, Oaklawn Park, Santa Anita Park and Turfway Park. This will increase during this year's spring and summer season when more horse racing Associations enter into agreements with the channel.

Churchill Downs Incorporated ("CDI"), Magna Entertainment Corp (MEC) and Racing UK have just announced their new joint venture. The three organizations have reached a definitive agreement with regard to broadcasting and telecasting races from CDI and MEC racetracks through the new television channel, Racing World.This will also extend to other North American and international racetracksfor viewership by race going public in the United Kingdom and Ireland.

Racing UK and its Racing World telivsion network will offer the new race course programs when live racing resumes at Arlington Park, Bay Meadows Race Course, Calder Race Course, Churchill Downs, Hollywood Park, Keeneland Race Course, Lone Star Park and Pimlico Race Course. The arrangement is that MEC and CDI will provide racing content to Racing World while Racing UK will look after day-to-day operations for the channel.

As part of the agreement, MEC and CDI will contribute their respective in-home video and wagering rights in the United Kingdom and Ireland to the new partnership but they do not expect this to affect their companies’ respective earnings or cash flow in 2006.