Scene and Heard

Churchill Downs Incorporated (“CDI”),

(NASDAQ: CHDN) announced today that it will not conduct its HullabaLOU Music Festival in

2011 and that it has dissolved its Churchill Downs Entertainment (“CDE”) Group.

The HullabaLOU Music Festival will not be conducted in 2011, but may return in future years once

the economy and the live-music business in the U.S. have fully recovered, and if suitable calendar

dates can be found. HullabaLOU 2010 was plagued by three consecutive July days with heat

indexes exceeding 105 degrees.

CDI formed the CDE group in 2009 to develop large-scale, live entertainment events that could be

conducted at CDI facilities and at other non-CDI venues. CDE developed the inaugural

HullabaLOU Music Festival conducted on July 23-25, 2010, at Churchill Downs Racetrack, and the

Fork, Cork & Style food and wine festivals conducted at Churchill Downs Racetrack on September

12, 2010, and at Arlington Park Race Course on October 2, 2010.

“It has become clear that launching new, upscale entertainment events in the current economy,

particularly with the persistently high levels of unemployment, is extremely difficult,” said CDI

President and Chief Executive Officer Robert L. Evans. “While we received exceptionally high

marks from the nearly 80,000 people who attended our CDE events, we fell short of the attendance

levels necessary to operate these events profitably.”

Steve Sexton, CDI Executive Vice President and President of CDE has decided to resign from CDI

to pursue other interests. “I would like to thank Steve for his many contributions to CDI’s success,”

said Evans.

Sexton stated: “I am proud of the CDE team and what we accomplished, and I have enjoyed my

tenure at both Arlington Park Race Course and at Churchill Downs Racetrack during my nine years

with CDI. I was fortunate to lead superb teams at each venue, overseeing six record-setting

Kentucky Derbys, two Breeders’ Cups, and the $121 million renovation of Churchill Downs

Racetrack. I am looking forward to expanding my career in a new direction.”

Three other full-time CDE employees will also be leaving CDI as the result of this action.