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<SEC-DOCUMENT>0000020212-03-000009.txt : 20030514
<SEC-HEADER>0000020212-03-000009.hdr.sgml : 20030514
<ACCEPTANCE-DATETIME>20030514153150
ACCESSION NUMBER:		0000020212-03-000009
CONFORMED SUBMISSION TYPE:	8-K/A
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20030331
ITEM INFORMATION:		Regulation FD Disclosure
FILED AS OF DATE:		20030514

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CHURCHILL DOWNS INC
		CENTRAL INDEX KEY:			0000020212
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-RACING, INCLUDING TRACK OPERATION [7948]
		IRS NUMBER:				610156015
		STATE OF INCORPORATION:			KY
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K/A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-01469
		FILM NUMBER:		03698847

	BUSINESS ADDRESS:	
		STREET 1:		700 CENTRAL AVE
		CITY:			LOUISVILLE
		STATE:			KY
		ZIP:			40208
		BUSINESS PHONE:		5026364400

	MAIL ADDRESS:	
		STREET 1:		700 CENTRAL AVENUE
		STREET 2:		700 CENTRAL AVENUE
		CITY:			LOUIVILLE
		STATE:			KY
		ZIP:			40208
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K/A
<SEQUENCE>1
<FILENAME>cs8ka103.htm
<DESCRIPTION>AMENDED 8-K MAY 14, 2003
<TEXT>
<HTML>
<HEAD>
<TITLE> Churchill Downs Inc. Press Release: Earnings Release 2nd Quarter 2002
</TITLE>
</HEAD>
<BODY>
<p ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4>
        SECURITIES AND EXCHANGE COMMISSION<br>WASHINGTON, D.C. 20549</FONT></p>

<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4>
        FORM 8-K/A</FONT></H1>

<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4>
        CURRENT REPORT<BR>
        PURSUANT TO SECTION 13 OR 15(d) OF THE<br>
        SECURITIES EXCHANGE ACT OF 1934</FONT></H1>

<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4>
      Date of Report (Date of earliest event reported): May 6, 2003</FONT></H1>

<p ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        <u>CHURCHILL DOWNS INCORPORATED</u><br>
        (Exact name of registrant as specified in its charter)</FONT></P>

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  <TD WIDTH=33% align="center"><FONT FACE="Times New Roman, Times, Serif"SIZE=3>
        <U>Kentucky</U><br>(State or other jurisdiction of incorporation or
        organization)</Font></TD>
 <TD WIDTH=33% align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        <U>0-1469</U><br>Commission file number</Font></TD>
 <TD WIDTH=34% align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        <U>61-0156015</U><br>(IRS Employer Identification<BR>No.)</Font></TD>
</TR>
</TABLE>
<BR>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        <u>700 Central Avenue, Louisville, KY 40208</U><br>
         Address of principal executive offices)<br>
         (Zip Code)<br></FONT></P>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
          <u>(502) 636-4400</u><br>
          (Registrant's telephone number, including area code)</FONT></P>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
          NOT APPLICABLE<BR>
        (Former name or former address, if changed since last report)</Font></P>
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                1</FONT></TD>
</TR>
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        <TD COLSPAN=3 ALIGN="center"><HR SIZE=5 NOSHADE></TD>
</TR>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=3>This Current Report on Form
8-K/A is being filed as an amendment to Churchill Downs Incorporated&#146;s
Current Report on Form 8-K filed May 7, 2003, to delete information filed under
Item 5 (which was referenced as Item 12) and to furnish such information under
Item 9 with respect to Item 12. </FONT></P>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>

<TR VALIGN=BOTTOM>
        <TD WIDTH=15% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                <B>ITEM 5.</B></FONT></TD>
        <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=60% ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                <B>Other Events and Regulation FD Disclosure</B></FONT></TD>
        <TD WIDTH=21% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

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<TR VALIGN=BOTTOM>
        <TD WIDTH=15% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=60% ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                The information filed under this Item 5 with respect to Item 12 is deleted in its
                entirety.</FONT></TD>
        <TD WIDTH=21% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

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<TR VALIGN=top>
        <TD WIDTH=15% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                <B>ITEM 7.</B></FONT></TD>
        <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=60% ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                <B>Financial Statements and Exhibits<BR>(c)  Exhibits (furnished pursuant to Item 12)</B></FONT></TD>
        <TD WIDTH=21% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

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<TR VALIGN=BOTTOM>
        <TD WIDTH=15% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=60% ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                99.1 Earnings Press Release dated May 6, 2003.</FONT></TD>
        <TD WIDTH=21% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

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<TR VALIGN=BOTTOM>
        <TD WIDTH=15% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                <B>ITEM 9.</B></FONT></TD>
        <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD colspan=2 ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                <B>Regulation FD Disclosure (Item 12. Results of Operations and Financial Condition)</B></FONT></TD>
</TR>

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<TR VALIGN=BOTTOM>
        <TD colspan=2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
               </FONT></TD>
        <TD WIDTH=60% ALIGN=Left><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                The registrant&#146;s earnings press release dated May 6, 2003, reporting its first
                quarter 2003 results of operation and financial condition, is attached hereto as
                Exhibit 99.1 and incorporated by reference herein. This information is being
                furnished under Item 12 of Form 8-K and is being presented under Item 9 of Form
                8-K pursuant to the U.S. Securities and Exchange Commission&#146;s interim
                filing guidance as set forth in Release No. 33-8216.</FONT></TD>
        <TD WIDTH=21% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

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<BR>

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        <TD COLSPAN=3 ALIGN="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                2</FONT></TD>
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        <TD COLSPAN=3 ALIGN="center"><HR SIZE=5 NOSHADE></TD>
</TR>
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<TR valign="bottom">
         <TD COLSPAN=3 align="CENTER"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                SIGNATURES</FONT></TD>
</TR>
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<TR valign="bottom">
        <TD COLSPAN=3 align="LEFT"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                Pursuant to the requirements of the Securities Exchange Act of 1934,
                 the registrant has duly caused this report to be signed on its behalf
                 by the undersigned thereunto duly authorized. </FONT></TD>
</TR>
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       <TD COLSPAN=2 align="CENTER"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD COLSPAN=1 align="LEFT"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                CHURCHILL DOWNS INCORPORATED</FONT></TD>
</TR>

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        <TD width=10% align="LEFT"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=40% align="LEFT"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                May 14, 2003</FONT></TD>
        <TD width=50% align="LEFT"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                <U>\s\Michael E. Miller</U></FONT></TD>
</TR>

<TR valign="bottom">
        <TD width=10% align="LEFT"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=40% align="LEFT"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=50% align="LEFT"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                Michael E. Miller</FONT></TD>
</TR>

<TR valign="bottom">
        <TD width=10% align="LEFT"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=40% align="LEFT"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=50% align="LEFT"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                Executive Vice President and</FONT></TD>
</TR>

<TR valign="bottom">
        <TD width=10% align="LEFT"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=40% align="LEFT"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=50% align="LEFT"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                Chief Financial Officer</FONT></TD>
</TR>

<TR valign="bottom">
        <TD width=10% align="LEFT"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=40% align="LEFT"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=50% align="LEFT"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                (Principal Financial and Accounting Officer)</FONT></TD>
</TR>

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                3</FONT></TD>
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<TR VALIGN=BOTTOM>
        <TD colspan=2 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                <B>INDEX TO EXHIBITS</B></FONT></TD>
        <TD WIDTH=85% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

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<TR VALIGN=BOTTOM>
        <TD WIDTH=15% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                <B>Exhibit<BR></B></FONT></TD>
        <TD WIDTH=85% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR VALIGN=BOTTOM>
        <TD WIDTH=15% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                <B><U>Number</U></B></FONT></TD>
        <TD WIDTH=85% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                <B><U>Description</U></B></FONT></TD>
</TR>
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<TR VALIGN=BOTTOM>
        <TD WIDTH=15% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                99.1</FONT></TD>
        <TD WIDTH=85% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                Earnings Press Release dated May 6, 2003</FONT></TD>
</TR>
</TABLE>
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                4</FONT></TD>
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        <TD COLSPAN=3 ALIGN="center"><HR SIZE=5 NOSHADE></TD>
</TR>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>3
<FILENAME>f8k103.htm
<DESCRIPTION>PRESS RELEASE DATED MAY 6, 2003
<TEXT>
<HTML>
<HEAD>
<TITLE> Churchill Downs Inc. Press Release: Earnings Release 1st Quarter 2003
</TITLE>
</HEAD>
<BODY>
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<TR>
        <TD WIDTH=50% ALIGN="LEFT">
                 FOR IMMEDIATE RELEASE</TD>
        <TD WIDTH=50% ALIGN="RIGHT">
                 Contact: Mike Ogburn</TD>
</TR>

<TR>
        <TD WIDTH=50% ALIGN="LEFT">
                 &nbsp;</TD>
        <TD WIDTH=50% ALIGN="RIGHT">
                 (502) 636-4415, office</TD>
</TR>

<TR>
        <TD WIDTH=50% ALIGN="LEFT">
                 &nbsp;</TD>
        <TD WIDTH=50% ALIGN="RIGHT">
                 (502) 262-0224, cellular</TD>
</TR>

<TR>
        <TD WIDTH=50% ALIGN="LEFT">
                 &nbsp;</TD>
        <TD WIDTH=50% ALIGN="RIGHT">
                 <U>mogburn@kyderby.com</U></TD>
</TR>

</TABLE>

<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>CHURCHILL
DOWNS INCORPORATED REPORTS FIRST QUARTER RESULTS</FONT></H1>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=3><B>LOUISVILLE, Ky. (May 6,
2003)</B> &#150; Churchill Downs Incorporated (Nasdaq: CHDN) (&#147;CDI&#148;or &#147;the Company&#148;)
today reported a loss for the first quarter ended March 31, 2003, that was
better than guidance previously provided by the Company. </FONT></P>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Net revenues  were $33.8  million,  up 9.0 percent  compared with $31.0 million for the same period of the
prior year.  CDI reported a net loss of $11.5  million,  or 87 cents per share,  compared  with a net loss of $12.0
million, or 92 cents per share, in the first quarter of 2002. </FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The decrease in net loss  year-over-year was a function primarily of lower interest expense,  ongoing cost
containment,  and increased  revenues from Arlington Park as a result of a favorable Illinois  regulatory  decision
concerning  simulcasting.  These gains were  partially  offset by the impact of the Illinois  harness racing strike
and a reduction in the  riverboat  subsidy at Hoosier  Park.  CDI  historically  does not generate a profit for the
first quarter because it conducts very few live racing events at any of its racetracks during the period.</FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Thomas H. Meeker,  CDI's president and chief executive officer,  said, "While regulatory  decisions had an
impact on our business,  our racing calendar remains the greatest single  influence on our first quarter  financial
results.  With the absence of  significant  live racing  events and revenues  during this  period,  we continued to
focus on `best practices' efforts in expense management to curtail our loss for the quarter.</FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
"We expect two key  developments  during the first  quarter  to deliver  ongoing  returns in the  quarters
ahead,"  continued  Meeker.  "Phase I of our Master Plan reached  partial  completion,  which allowed us to provide
and fill the new  fourth-floor  Jockey Club luxury  suites above the  grandstand  for the Kentucky  Derby  weekend.
This phase will be completed  later in the year and offer a total of 64 suites on three floors,  as well as meeting
rooms and banquet  facilities that will enable us to provide  premium  accommodations  while  maximizing the use of
our facility.  In addition,  during the quarter we laid the  groundwork  for a refinancing  completed in April that
will offer us ready access to capital at competitive rates."</FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Meeker  added,  "Looking  ahead,  we are  pleased  with the results of the  Kentucky  Derby  weekend  that
included a  13.8-percent  increase  in total  wagering  on the 12-race  Derby card on  Saturday  and a  8.2-percent
increase in total  wagering on the  Kentucky  Oaks 11-race  card on Friday.  The $140 million  wagered on Derby Day
set a new North  American  record for  wagering on a single  race day event.  While five of our six tracks will run
during the second quarter, it is too early in our racing season to support a definitive operating forecast.</FONT></P>

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                5</FONT></TD>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
"At present,  we  anticipate  earnings  for the second  quarter will range from $2.00 to $2.07 per diluted
share.  That range  exceeds the $1.73 per diluted share earned in the  year-earlier  period and is largely a result
of the shift of Arlington  Park's 2003 racing  calendar from the fourth quarter to the second  quarter,  which will
add 19 days of racing in the second  quarter of 2003  versus the same period in 2002.  Our  guidance  for  earnings
for the full year remains at approximately  $1.80 per diluted share,  compared to $1.57 per share in 2002 after the
asset impairment loss at Ellis Park that reduced earnings by $0.21."</FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A conference  call regarding this release is scheduled for Wednesday,  May 7, at 9 a.m.  (EDT).  Investors
and other  interested  parties may listen to the  teleconference  by accessing  the online,  real-time Web cast and
broadcast  of the call at  <U>www.churchilldownsincorporated.com</U>  or  <U>www.companyboardroom.com</U>,  or by  calling  (913)
981-5508 at least 10 minutes  before the  appointed  time.  The online  replay will be available  at  approximately
noon (EDT) and continue for two weeks.  An eight-day  telephonic  replay will be available two hours after the call
ends by dialing (719) 457-0820 and entering 234401 when prompted for the access code.</FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition to the results  provided in accordance  with U.S.  Generally  Accepted  Accounting  Principles
("GAAP"), the Company has provided a non-GAAP measurement,  which presents a financial measure of Earnings before Interest,
Taxes,  Depreciation  and  Amortization  ("EBITDA").  CDI uses  EBITDA as a key  performance  measure  of  results of
operations  for  purposes  of  evaluating  performance  internally.  The Company  believes  the use of this  measure  enables
management  and  investors  to  evaluate  and  compare,  from  period to period,  CDI's  operating  performance  in a
meaningful and consistent  manner.  This non-GAAP  measurement is not intended to replace the  presentation  of CDI's
financial results in accordance with GAAP.</FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Churchill Downs Incorporated ("CDI"),  headquartered in Louisville,  Ky., owns and operates world-renowned
horseracing  venues  throughout  the United States.  The Company's  racetracks in  California,  Florida,  Illinois,
Indiana and Kentucky host 115 graded-stakes  events and many of North America's most prestigious  races,  including
the Kentucky Derby and Kentucky Oaks,  Hollywood Gold Cup and Arlington  Million.  CDI racetracks  have hosted nine
Breeders' Cup World  Thoroughbred  Championships  - more than any other North  American  racing  company.  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
<U>www.churchilldownsincorporated.com.</U></FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>
This news release  contains  forward-looking  statements made pursuant to the "safe harbor"  provisions of
the  Private  Securities  Litigation  Reform  Act of 1995.  The  reader  is  cautioned  that  such  forward-looking
statements  involve risks and uncertainties  that could cause our actual operating results and financial  condition
to  differ  materially.  Forward-looking  statements  are  typically  identified  by  the  use  of  terms  such  as
"anticipate,"  "believe," "could,"  "estimate,"  "expect," "intend," "may," "might," "plan," "predict,"  "project,"
"should," "will," and similar words, although some forward-looking  statements are expressed differently.  Although
we believe that the  expectations  reflected  in such  forward-looking  statements  are  reasonable  we can give no
assurance that such  expectations  will prove to be correct.  Important  factors that could cause actual results to
differ materially from our expectations  include: the effect of global economic  conditions;  the effect (including
possible  increases  in the cost of doing  business)  resulting  from war and  terrorist  activities  or  political
uncertainties;  the impact of increasing insurance costs; the financial  performance of our racing operations;  the
impact of gaming  competition  (including  lotteries and riverboat,  cruise ship and land-based  casinos) and other
sports and entertainment  options in those markets in which we operate;  a substantial change in law or regulations
affecting  our  pari-mutuel  activities;  a  substantial  change in  allocation  of live  racing  days;  litigation
surrounding  the  Rosemont,  Illinois,  riverboat  casino;  changes in Illinois law that impact  revenues of racing
operations  in Illinois;  a decrease in riverboat  admissions  subsidy  revenue  from our Indiana  operations;  the
impact of an additional  racetrack near our Indiana  operations;  our continued ability to effectively  compete for
the country's top horses and trainers  necessary to field  high-quality horse racing; our continued ability to grow
our share of the interstate  simulcast  market;  the impact of interest rate  fluctuations;  our ability to execute
our  acquisition  strategy  and to complete or  successfully  operate  planned  expansion  projects;  the  economic
environment;  our ability to adequately integrate acquired  businesses;  market reaction to our expansion projects;
the loss of our totalisator  companies or their inability to keep their technology current;  our accountability for
environmental contamination; the loss of key personnel and the volatility of our stock price.</I></FONT></P>
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<TR VALIGN=TOP>
        <TD COLSPAN=3 ALIGN="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                6</FONT></TD>
</TR>
<TR VALIGN=TOP>
        <TD COLSPAN=3 ALIGN="center"><HR SIZE=5 NOSHADE></TD>
</TR>
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<P align="center"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        CHURCHILL DOWNS INCORPORATED<br>
        CONDENSED CONSOLIDATED STATEMENTS OF NET EARNINGS<br>
        for the three months ended March 31,<br>
        (Unaudited)<BR>
        (In thousands, except per share data)
</FONT></P>
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 border=0><!-- Table #####################################################-->
<!-- BLANK LINE--><TR><TD>&nbsp;</TD></TR>
<TR valign="TOP">
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=70% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="center"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;<U>2003</U></FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="center"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;<U>2002</U></FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>
<!-- BLANK LINE--><TR><TD>&nbsp;</TD></TR>
<TR valign="TOP">
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=70% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                Net  revenues</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                $&nbsp;33,789</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                $&nbsp;30,972</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR valign="TOP">
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=70% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                Operating expenses</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                43,542</FONT><HR WIDTH=88% SIZE=1 NOSHADE></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT><HR WIDTH=100% SIZE=1 NOSHADE></TD>
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                39,729</FONT><HR WIDTH=88% SIZE=1 NOSHADE></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT><HR WIDTH=100% SIZE=1 NOSHADE></TD>
</TR>
<!-- BLANK LINE--><TR><TD>&nbsp;</TD></TR>

<TR valign="TOP">
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=70% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross loss</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                (9,753</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT></TD>
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                (8,757</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT></TD>
</TR>
<!-- BLANK LINE--><TR><TD>&nbsp;</TD></TR>

<TR valign="TOP">
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=70% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                Selling, general and administrative expenses</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                8,108</FONT><HR WIDTH=88% SIZE=1 NOSHADE></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT><HR WIDTH=100% SIZE=1 NOSHADE></TD>
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                8,396</FONT><HR WIDTH=88% SIZE=1 NOSHADE></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT><HR WIDTH=100% SIZE=1 NOSHADE></TD>
</TR>
<!-- BLANK LINE--><TR><TD>&nbsp;</TD></TR>
<TR valign="TOP">
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=70% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating loss</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                (17,861</FONT><HR WIDTH=88% SIZE=1 NOSHADE></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT><HR WIDTH=100% SIZE=1 NOSHADE></TD>
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                (17,153</FONT><HR WIDTH=88% SIZE=1 NOSHADE></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT><HR WIDTH=100% SIZE=1 NOSHADE></TD>
</TR>
<!-- BLANK LINE--><TR><TD>&nbsp;</TD></TR>
<TR valign="TOP">
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD colspan=6 align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                Other income (expense):</FONT></TD>
</TR>

<TR valign="TOP">
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=70% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                62</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                81</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR valign="TOP">
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=70% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                (1,827</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT></TD>
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                (2,652</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT></TD>
</TR>

<TR valign="TOP">
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=70% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Miscellaneous, net</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                402</FONT><HR WIDTH=88% SIZE=1 NOSHADE></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT><HR WIDTH=100% SIZE=1 NOSHADE></TD>
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                (169</FONT><HR WIDTH=88% SIZE=1 NOSHADE></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT><HR WIDTH=100% SIZE=1 NOSHADE></TD>
</TR>

<TR valign="TOP">
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=70% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                (1,363</FONT><HR WIDTH=88% SIZE=1 NOSHADE></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT><HR WIDTH=100% SIZE=1 NOSHADE></TD>
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                (2,740</FONT><HR WIDTH=88% SIZE=1 NOSHADE></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT><HR WIDTH=100% SIZE=1 NOSHADE></TD>
</TR>
<!-- BLANK LINE--><TR><TD>&nbsp;</TD></TR>
<TR valign="TOP">
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=70% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                Loss before income tax benefit</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                (19,224</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT></TD>
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                (19,893</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT></TD>
</TR>
<!-- BLANK LINE--><TR><TD>&nbsp;</TD></TR>
<TR valign="TOP">
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=70% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                Income tax benefit</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                7,728</FONT><HR WIDTH=88% SIZE=1 NOSHADE></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT><HR WIDTH=100% SIZE=1 NOSHADE></TD>
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                7,858</FONT><HR WIDTH=88% SIZE=1 NOSHADE></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT><HR WIDTH=100% SIZE=1 NOSHADE></TD>
</TR>
<!-- BLANK LINE--><TR><TD>&nbsp;</TD></TR>
<TR valign="TOP">
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=70% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                Net loss</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                $(11,496</FONT><HR WIDTH=88% SIZE=3 NOSHADE></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT><HR WIDTH=100% SIZE=3 NOSHADE></TD>
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                $(12,035</FONT><HR WIDTH=88% SIZE=3 NOSHADE></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT><HR WIDTH=100% SIZE=3 NOSHADE></TD>
</TR>
<!-- BLANK LINE--><TR><TD>&nbsp;</TD></TR>
<TR valign="TOP">
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=70% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                Basic and diluted net loss per common share</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                $(0.87</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT></TD>
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                $(0.92</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT></TD>
</TR>
<!-- BLANK LINE--><TR><TD>&nbsp;</TD></TR>
<TR valign="TOP">
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=70% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                Basic and diluted weighted average shares outstanding</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                13,159</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                13,105</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>
<!-- BLANK LINE--><TR><TD>&nbsp;</TD></TR>
<TR valign="TOP">
        <TD colspan=7 align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                Certain financial statement amounts have been reclassified in the
                prior periods to conform to current period presentation.</FONT></TD>
</TR>
</TABLE>
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<!-- BLANK LINE--><TR><TD>&nbsp;</TD></TR>
<!-- BLANK LINE--><TR><TD>&nbsp;</TD></TR>
<TR VALIGN=TOP>
        <TD COLSPAN=3 ALIGN="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
               7</FONT></TD>
</TR>
<TR VALIGN=TOP>
        <TD COLSPAN=3 ALIGN="center"><HR SIZE=5 NOSHADE></TD>
</TR>
<!-- BLANK LINE--><TR><TD>&nbsp;</TD></TR>
<!-- BLANK LINE--><TR><TD>&nbsp;</TD></TR>
</TABLE>
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<P align="center"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        CHURCHILL DOWNS INCORPORATED<BR>
        SUPPLEMENTAL INFORMATION BY OPERATING UNIT<BR>
        for the three months ended March 31,<BR>
        (Unaudited)<BR>
        (In thousands)<BR>
</FONT></P>
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 border=0><!-- Table #####################################################-->
<!-- BLANK LINE--><TR><TD>&nbsp;</TD></TR>
<TR valign="TOP">
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=55% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="center"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>2003</U></FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="center"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>2002</U></FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR valign="TOP">
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD colspan=7 align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                Net Revenues:</FONT></TD>
</TR>

<TR valign="TOP">
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=55% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;Kentucky Operations</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                $&nbsp;&nbsp;&nbsp;&nbsp;4,898</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                $&nbsp;&nbsp;&nbsp;&nbsp;5,596</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR valign="TOP">
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=55% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;Hollywood Park</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                4,973</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                5,032</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR valign="TOP">
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=55% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;Calder Race Course</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                1,380</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                1,254</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR valign="TOP">
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=55% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;Arlington Park</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                11,989</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                6,119</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR valign="TOP">
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=55% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;Hoosier Park</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                9,434</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                12,036</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR valign="TOP">
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=55% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;CDSN</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                843</FONT><HR WIDTH=90% SIZE=1 NOSHADE></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT><HR WIDTH=93% SIZE=1 NOSHADE></TD>
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                697</FONT><HR WIDTH=87% SIZE=1 NOSHADE></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT><HR WIDTH=93% SIZE=1 NOSHADE></TD>
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR valign="TOP">
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=55% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total racing operations</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                33,517</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                30,734</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR valign="TOP">
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=55% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;Other investments</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                672</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                531</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR valign="TOP">
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=55% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;Corporate revenues</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                283</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                438</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR valign="TOP">
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=55% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;Eliminations</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                (683</FONT><HR WIDTH=90% SIZE=1 NOSHADE></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT><HR WIDTH=100% SIZE=1 NOSHADE></TD>
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                (731</FONT><HR WIDTH=90% SIZE=1 NOSHADE></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT><HR WIDTH=100% SIZE=1 NOSHADE></TD>
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR valign="TOP">
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=55% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                $&nbsp;33,789</FONT><HR WIDTH=90% SIZE=3 NOSHADE></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT><HR WIDTH=100% SIZE=3 NOSHADE></TD>
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                $&nbsp;30,972</FONT><HR WIDTH=90% SIZE=3 NOSHADE></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT><HR WIDTH=100% SIZE=3 NOSHADE></TD>
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR valign="TOP">
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD colspan=7 align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                EBITDA:</FONT></TD>
</TR>

<TR valign="TOP">
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=55% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;Kentucky Operations</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                $&nbsp;&nbsp;(5,147</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT></TD>
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                $&nbsp;&nbsp;(5,211</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT></TD>
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR valign="TOP">
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=55% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;Hollywood Park</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                (2,215</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT></TD>
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                (2,217</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT></TD>
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR valign="TOP">
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=55% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;Calder Race Course</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                (2,667</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT></TD>
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                (3,075</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT></TD>
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR valign="TOP">
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=55% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;Arlington Park</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
               (1,469</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT></TD>
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                (2,261</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT></TD>
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR valign="TOP">
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=55% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;Hoosier Park</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                674</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                1,990</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                </FONT></TD>
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR valign="TOP">
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=55% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;CDSN</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                219</FONT><HR WIDTH=90% SIZE=1 NOSHADE></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT><HR WIDTH=93% SIZE=1 NOSHADE></TD>
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                263</FONT><HR WIDTH=90% SIZE=1 NOSHADE></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT><HR WIDTH=93% SIZE=1 NOSHADE></TD>
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR valign="TOP">
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=55% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total racing operations</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                (10,605</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT></TD>
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                (10,511</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT></TD>
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR valign="TOP">
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=55% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;Other investments</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                35</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                (332</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT></TD>
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR valign="TOP">
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=55% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;Corporate expenses</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                (1,827</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                 )</FONT></TD>
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                (1,604</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT></TD>
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR valign="TOP">
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=55% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;Eliminations</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                -&nbsp;&nbsp;</FONT><HR WIDTH=90% SIZE=1 NOSHADE></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT><HR WIDTH=100% SIZE=1 NOSHADE></TD>
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                (60</FONT><HR WIDTH=90% SIZE=1 NOSHADE></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT><HR WIDTH=100% SIZE=1 NOSHADE></TD>
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR valign="TOP">
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=55% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                $(12,397</FONT><HR WIDTH=90% SIZE=3 NOSHADE></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT><HR WIDTH=100% SIZE=3 NOSHADE></TD>
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                $(12,507</FONT><HR WIDTH=90% SIZE=3 NOSHADE></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT><HR WIDTH=100% SIZE=3 NOSHADE></TD>
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR valign="TOP">
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD colspan=7 align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                Operating income (loss):</FONT></TD>
</TR>

<!-- BLANK LINE--><TR><TD>&nbsp;</TD></TR>

<TR valign="TOP">
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=55% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;Kentucky Operations</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                $&nbsp;&nbsp;(6,769</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT></TD>
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                $&nbsp;&nbsp;(6,671</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT></TD>
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR valign="TOP">
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=55% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;Hollywood Park</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                (3,637</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT></TD>
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                (3,578</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT></TD>
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR valign="TOP">
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=55% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;Calder Race Course</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                (3,262</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT></TD>
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                (3,647</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT></TD>
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR valign="TOP">
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=55% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;Arlington Park</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
               (2,253</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT></TD>
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                (2,920</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT></TD>
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR valign="TOP">
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=55% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;Hoosier Park</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                276</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                1,607</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                </FONT></TD>
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR valign="TOP">
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=55% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;CDSN</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                219</FONT><HR WIDTH=90% SIZE=1 NOSHADE></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT><HR WIDTH=93% SIZE=1 NOSHADE></TD>
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                263</FONT><HR WIDTH=90% SIZE=1 NOSHADE></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT><HR WIDTH=93% SIZE=1 NOSHADE></TD>
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR valign="TOP">
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=55% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total racing operations</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                (15,426</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT></TD>
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                (14,946</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT></TD>
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR valign="TOP">
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=55% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;Other investments</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                (656</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                 )</FONT></TD>
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                (592</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT></TD>
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR valign="TOP">
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=55% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;Corporate expenses</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                (1,798</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                 )</FONT></TD>
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                (1,577</FONT></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT></TD>
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR valign="TOP">
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=55% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;Eliminations</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                19</FONT><HR WIDTH=90% SIZE=1 NOSHADE></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT><HR WIDTH=100% SIZE=1 NOSHADE></TD>
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
               (38</FONT><HR WIDTH=90% SIZE=1 NOSHADE></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT><HR WIDTH=100% SIZE=1 NOSHADE></TD>
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR valign="TOP">
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=55% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                $(17,861</FONT><HR WIDTH=90% SIZE=3 NOSHADE></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT><HR WIDTH=100% SIZE=3 NOSHADE></TD>
        <TD width=5% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD width=9% align="right"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                $(17,153</FONT><HR WIDTH=90% SIZE=3 NOSHADE></TD>
        <TD width=1% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT><HR WIDTH=100% SIZE=3 NOSHADE></TD>
        <TD width=10% align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>
<!-- BLANK LINE--><TR><TD>&nbsp;</TD></TR>
<TR valign="TOP">
        <TD colspan=8 align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                Certain financial statement amounts have been reclassified in the
                prior periods to conform to current period presentation.</FONT></TD>
</TR>
</TABLE>
<!-- PAGE BREAK^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^-->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 border=0><!-- Table ##############-->
<!-- BLANK LINE--><TR><TD>&nbsp;</TD></TR>
<!-- BLANK LINE--><TR><TD>&nbsp;</TD></TR>
<TR VALIGN=TOP>
        <TD COLSPAN=3 ALIGN="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                8</FONT></TD>
</TR>
<TR VALIGN=TOP>
        <TD COLSPAN=3 ALIGN="center"><HR SIZE=5 NOSHADE></TD>
</TR>
<!-- BLANK LINE--><TR><TD>&nbsp;</TD></TR>
<!-- BLANK LINE--><TR><TD>&nbsp;</TD></TR>
</TABLE>
<!-- END OF PAGE BREAK^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^-->
<P align="center"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        CHURCHILL DOWNS INCORPORATED<BR>
        SUPPLEMENTAL INFORMATION<BR>
        for the three months ended March 31,<BR>
        (Unaudited)<BR>
        (in thousands)
</FONT></P>


<BR>

<P align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        The following table is a reconciliation of our non-GAAP financial measure
        of EBITDA to the accompanying financial statements:
</FONT></P>

<TABLE width=100% CELLPADDING=0 CELLSPACING=0 BORDER=0><!-- Table #####################################################-->
<TR VALIGN=TOP>
        <TD WIDTH=11% align="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=45% align="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=5% align="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD colspan=5 align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                <U>Three Months Ended March 31,</U></FONT></TD>
        <TD WIDTH=10% align="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR VALIGN=TOP>
        <TD WIDTH=11% align="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=45% align="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=5% align="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD colspan=2 align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                <U>2003</U></FONT></TD>
        <TD WIDTH=11% align="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD colspan=2 align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                <U>2002</U></FONT></TD>
        <TD WIDTH=10% align="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>


<TR VALIGN=TOP>
        <TD WIDTH=11% align="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=45% align="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                Total EBITDA</FONT></TD>
        <TD WIDTH=5% align="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=8% align="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                $(12,397</FONT></TD>
        <TD WIDTH=1% align="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT></TD>
        <TD WIDTH=11% align="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=8% align="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                $(12,507</FONT></TD>
        <TD WIDTH=1% align="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT></TD>
        <TD WIDTH=10% align="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR VALIGN=TOP>
        <TD WIDTH=11% align="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=45% align="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                Depreciation and amortization</FONT></TD>
        <TD WIDTH=5% align="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=8% align="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                (5,062</FONT></TD>
        <TD WIDTH=1% align="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT></TD>
        <TD WIDTH=11% align="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=8% align="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                (4,815</FONT></TD>
        <TD WIDTH=1% align="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT></TD>
        <TD WIDTH=10% align="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR VALIGN=TOP>
        <TD WIDTH=11% align="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=45% align="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                Interest income (expense), net</FONT></TD>
        <TD WIDTH=5% align="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=8% align="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                (1,765</FONT><HR WIDTH=100% SIZE=1 NOSHADE></TD>
        <TD WIDTH=1% align="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT><HR WIDTH=100% SIZE=1 NOSHADE></TD>
        <TD WIDTH=11% align="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=8% align="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                (2,571</FONT><HR WIDTH=100% SIZE=1 NOSHADE></TD>
        <TD WIDTH=1% align="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT><HR WIDTH=100% SIZE=1 NOSHADE></TD>
        <TD WIDTH=10% align="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR VALIGN=TOP>
        <TD WIDTH=11% align="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=45% align="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                Loss before income tax benefit</FONT></TD>
        <TD WIDTH=5% align="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=8% align="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                $(19,224</FONT><HR WIDTH=100% SIZE=3 NOSHADE></TD>
        <TD WIDTH=1% align="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT><HR WIDTH=100% SIZE=3 NOSHADE></TD>
        <TD WIDTH=11% align="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=8% align="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                $(19,893</FONT><HR WIDTH=100% SIZE=3 NOSHADE></TD>
        <TD WIDTH=1% align="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT><HR WIDTH=100% SIZE=3 NOSHADE></TD>
        <TD WIDTH=10% align="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<!-- BLANK LINE--><TR><TD>&nbsp;</TD></TR>
</TABLE>
<!-- PAGE BREAK^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^-->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 border=0><!-- Table ##############-->
<!-- BLANK LINE--><TR><TD>&nbsp;</TD></TR>
<!-- BLANK LINE--><TR><TD>&nbsp;</TD></TR>
<TR VALIGN=TOP>
        <TD COLSPAN=3 ALIGN="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                9</FONT></TD>
</TR>
<TR VALIGN=TOP>
        <TD COLSPAN=3 ALIGN="center"><HR SIZE=5 NOSHADE></TD>
</TR>
<!-- BLANK LINE--><TR><TD>&nbsp;</TD></TR>
<!-- BLANK LINE--><TR><TD>&nbsp;</TD></TR>
</TABLE>
<!-- END OF PAGE BREAK^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^-->

<P align="center"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
        CHURCHILL DOWNS INCORPORATED<BR>
        CONDENSED CONSOLIDATED BALANCE SHEETS<BR>
        (in thousands)
</FONT></P>
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 border=0><!-- Table #####################################################-->
<!-- BLANK LINE--><TR><TD>&nbsp;</TD></TR>

<!-- CONDENSED CONSOLIDATED BALANCE SHEETS-->

<TR VALIGN="BOTTOM">
        <TD WIDTH=49% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=4% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=12% align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                March 31,</FONT></TD>
        <TD WIDTH=5% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=14% align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                December 31,</FONT></TD>
        <TD WIDTH=5% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=12% align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                March 31,</FONT></TD>
        <TD WIDTH=1% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<!-- Assets ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~-->
<TR VALIGN="BOTTOM">
        <TD WIDTH=49% align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=4% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=12% align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                <u>2003</u></FONT></TD>
        <TD WIDTH=5% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=12% align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                <u>2002</u></FONT></TD>
        <TD WIDTH=5% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=12% align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                <u>2002</u></FONT></TD>
        <TD WIDTH=1% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR VALIGN="BOTTOM">
        <TD WIDTH=49% align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                ASSETS</FONT></TD>
        <TD WIDTH=4% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=12% align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                (unaudited)</FONT></TD>
        <TD WIDTH=5% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=12% align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=5% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=12% align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                (unaudited)</FONT></TD>
        <TD WIDTH=1% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>
</table>

<TABLE width=100% CELLPADDING=0 CELLSPACING=0 BORDER=0><!-- Table #####################################################-->
<!-- Current Assests Table~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~-->

<TR VALIGN="BOTTOM">
        <TD colspan=9 align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                Current assests:</FONT></TD>
</TR>

<TR VALIGN="BOTTOM">
        <TD WIDTH=49% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                Cash and cash equivalents</FONT></TD>
        <TD WIDTH=4% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                $&nbsp;&nbsp;11,084</FONT></TD>
        <TD WIDTH=5% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=12% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                $&nbsp;&nbsp;14,662</FONT></TD>
        <TD WIDTH=9% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                $&nbsp;&nbsp;13,828</FONT></TD>
        <TD WIDTH=3% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR VALIGN="BOTTOM">
        <TD WIDTH=49% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                Restricted cash</FONT></TD>
        <TD WIDTH=4% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                629</FONT></TD>
        <TD WIDTH=5% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=12% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                3,247</FONT></TD>
        <TD WIDTH=9% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                1,340</FONT></TD>
        <TD WIDTH=3% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR VALIGN="BOTTOM">
        <TD WIDTH=49% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                Accounts receivable, net</FONT></TD>
        <TD WIDTH=4% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                17,435</FONT></TD>
        <TD WIDTH=5% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=12% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                34,435</FONT></TD>
        <TD WIDTH=9% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                13,889</FONT></TD>
        <TD WIDTH=3% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR VALIGN="BOTTOM">
        <TD WIDTH=49% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                Deferred income taxes</FONT></TD>
        <TD WIDTH=4% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                2,513</FONT></TD>
        <TD WIDTH=5% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=12% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                2,159</FONT></TD>
        <TD WIDTH=9% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                2,288</FONT></TD>
        <TD WIDTH=3% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR VALIGN="TOP">
        <TD WIDTH=49% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                Other current assets</FONT></TD>
        <TD WIDTH=4% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                16,834</FONT><HR WIDTH=100% SIZE=1 NOSHADE></TD>
        <TD WIDTH=5% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=12% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                5,988</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TD>
        <TD WIDTH=9% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                13,900</FONT><HR WIDTH=100% SIZE=1 NOSHADE></TD>
        <TD WIDTH=3% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR VALIGN="BOTTOM">
        <TD WIDTH=49% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                Total current assets</FONT></TD>
        <TD WIDTH=4% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                48,495</FONT></TD>
        <TD WIDTH=5% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=12% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                60,491</FONT></TD>
        <TD WIDTH=9% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                45,245</FONT></TD>
        <TD WIDTH=3% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<!-- BLANK LINE--><TR><TD>&nbsp;</TD></TR>

<TR VALIGN="BOTTOM">
        <TD WIDTH=49% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                Other assets</FONT></TD>
        <TD WIDTH=4% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                10,707</FONT></TD>
        <TD WIDTH=5% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=12% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                10,606</FONT></TD>
        <TD WIDTH=9% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                12,320</FONT></TD>
        <TD WIDTH=3% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR VALIGN="BOTTOM">
        <TD WIDTH=49% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                Plant and equipment, net</FONT></TD>
        <TD WIDTH=4% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                343,910</FONT></TD>
        <TD WIDTH=5% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=12% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                338,381</FONT></TD>
        <TD WIDTH=9% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                339,804</FONT></TD>
        <TD WIDTH=3% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR VALIGN="BOTTOM">
        <TD WIDTH=49% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                Goodwill, net</FONT></TD>
        <TD WIDTH=4% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                52,239</FONT></TD>
        <TD WIDTH=5% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=12% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                52,239</FONT></TD>
        <TD WIDTH=9% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                52,239</FONT></TD>
        <TD WIDTH=3% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR VALIGN="TOP">
        <TD WIDTH=49% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                Othe intangible assets, net</FONT></TD>
        <TD WIDTH=4% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                7,404</FONT><HR WIDTH=100% SIZE=1 NOSHADE></TD>
        <TD WIDTH=5% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=12% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                7,495</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TD>
        <TD WIDTH=9% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                7,769</FONT><HR WIDTH=100% SIZE=1 NOSHADE></TD>
        <TD WIDTH=3% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR VALIGN="BOTTOM">
        <TD WIDTH=49% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=4% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                $462,755</FONT><HR WIDTH=100% SIZE=3 NOSHADE></TD>
        <TD WIDTH=5% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=12% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                $469,212</FONT><HR WIDTH=75% SIZE=3 NOSHADE></TD>
        <TD WIDTH=9% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                $457,377</FONT><HR WIDTH=100% SIZE=3 NOSHADE></TD>
        <TD WIDTH=3% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR VALIGN="BOTTOM">
        <TD colspan=8 align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                LIABILITIES AND SHAREHOLDERS' EQUITY</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
        <TD colspan=8 align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                Current liabilities:</FONT></TD>
</TR>

<TR VALIGN="BOTTOM">
        <TD WIDTH=49% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                Accounts payable</FONT></TD>
        <TD WIDTH=4% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                $&nbsp;&nbsp;27,296</FONT></TD>
        <TD WIDTH=5% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=12% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                $&nbsp;&nbsp;31,189</FONT></TD>
        <TD WIDTH=9% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                $&nbsp;&nbsp;28,250</FONT></TD>
        <TD WIDTH=3% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR VALIGN="BOTTOM">
        <TD WIDTH=49% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                Accrued expenses</FONT></TD>
        <TD WIDTH=4% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                27,609</FONT></TD>
        <TD WIDTH=5% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=12% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                31,782</FONT></TD>
        <TD WIDTH=9% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                28,270</FONT></TD>
        <TD WIDTH=3% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR VALIGN="BOTTOM">
        <TD WIDTH=49% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                Dividends payable</FONT></TD>
        <TD WIDTH=4% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                -&nbsp;&nbsp;</FONT></TD>
        <TD WIDTH=5% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=12% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                6,578</FONT></TD>
        <TD WIDTH=9% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                -&nbsp;&nbsp;</FONT></TD>
        <TD WIDTH=3% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR VALIGN="BOTTOM">
        <TD WIDTH=49% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                Income taxes payable</FONT></TD>
        <TD WIDTH=4% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                -&nbsp;&nbsp;</FONT></TD>
        <TD WIDTH=5% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=12% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                727</FONT></TD>
        <TD WIDTH=9% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                -&nbsp;&nbsp;</FONT></TD>
        <TD WIDTH=3% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR VALIGN="BOTTOM">
        <TD WIDTH=49% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                Deferred revenue</FONT></TD>
        <TD WIDTH=4% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                28,579</FONT></TD>
        <TD WIDTH=5% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=12% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                14,876</FONT></TD>
        <TD WIDTH=9% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                23,817</FONT></TD>
        <TD WIDTH=3% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR VALIGN="top">
        <TD WIDTH=49% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                Long-term debt, current portion</FONT></TD>
        <TD WIDTH=4% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                513</FONT><HR WIDTH=100% SIZE=1 NOSHADE></TD>
        <TD WIDTH=5% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=12% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                508</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TD>
        <TD WIDTH=9% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                524</FONT><HR WIDTH=100% SIZE=1 NOSHADE></TD>
        <TD WIDTH=3% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR VALIGN="BOTTOM">
        <TD WIDTH=49% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                Total current liabilities</FONT></TD>
        <TD WIDTH=4% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                83,997</FONT></TD>
        <TD WIDTH=5% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=12% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                85,660</FONT></TD>
        <TD WIDTH=9% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                80,861</FONT></TD>
        <TD WIDTH=3% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<!-- BLANK LINE--><TR><TD>&nbsp;</TD></TR>

<TR VALIGN="top">
        <TD WIDTH=49% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                Long-term debt, due after one year</FONT></TD>
        <TD WIDTH=4% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                127,646</FONT></TD>
        <TD WIDTH=5% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=12% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                122,840</FONT></TD>
        <TD WIDTH=9% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                142,748</FONT></TD>
        <TD WIDTH=3% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR VALIGN="BOTTOM">
        <TD WIDTH=49% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                Other liabilities</FONT></TD>
        <TD WIDTH=4% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                12,997</FONT></TD>
        <TD WIDTH=5% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=12% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                12,603</FONT></TD>
        <TD WIDTH=9% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                12,241</FONT></TD>
        <TD WIDTH=3% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR VALIGN="top">
        <TD WIDTH=49% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                Deferred income taxes</FONT></TD>
        <TD WIDTH=4% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                14,822</FONT><HR WIDTH=100% SIZE=1 NOSHADE></TD>
        <TD WIDTH=5% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=12% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                13,112</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TD>
        <TD WIDTH=9% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                15,124</FONT><HR WIDTH=100% SIZE=1 NOSHADE></TD>
        <TD WIDTH=3% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR VALIGN="BOTTOM">
        <TD WIDTH=49% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                Total Liabilities</FONT></TD>
        <TD WIDTH=4% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                239,462</FONT></TD>
        <TD WIDTH=5% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=12% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                234,215</FONT></TD>
        <TD WIDTH=9% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                250,974</FONT></TD>
        <TD WIDTH=3% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<!-- BLANK LINE--><TR><TD>&nbsp;</TD></TR>

<TR VALIGN="BOTTOM">
        <TD WIDTH=49% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                Commitments and contingencies</FONT></TD>
        <TD WIDTH=4% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                -&nbsp;&nbsp;</FONT></TD>
        <TD WIDTH=5% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=12% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                -&nbsp;&nbsp;</FONT></TD>
        <TD WIDTH=9% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                -&nbsp;&nbsp;</FONT></TD>
        <TD WIDTH=3% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR VALIGN="BOTTOM">
        <TD colspan=8 align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                Shareholders' equity:</FONT></TD>
</TR>

<TR VALIGN="BOTTOM">
        <TD colspan=8 align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                Preferred stock, no par value;</FONT></TD>
</TR>

<TR VALIGN="BOTTOM">
        <TD WIDTH=49% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                250 shares authorized; no shares issued</FONT></TD>
        <TD WIDTH=4% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                -&nbsp;&nbsp;</FONT></TD>
        <TD WIDTH=5% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=12% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                -&nbsp;&nbsp;</FONT></TD>
        <TD WIDTH=9% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                -&nbsp;&nbsp;</FONT></TD>
        <TD WIDTH=3% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR VALIGN="BOTTOM">
        <TD colspan=8 align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                Common stock, no par value; 50,000 shares</FONT></TD>
</TR>

<TR VALIGN="BOTTOM">
        <TD colspan=8 align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                authorized; issued: 13,168 shares March 31,</FONT></TD>
</TR>

<TR VALIGN="BOTTOM">
        <TD colspan=8 align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                2003, 13,157 shares December 31, 2002, and</FONT></TD>
</TR>

<TR VALIGN="BOTTOM">
        <TD WIDTH=49% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                13,115 shares March 31, 2002</FONT></TD>
        <TD WIDTH=4% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                126,302</FONT></TD>
        <TD WIDTH=5% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=12% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                126,043</FONT></TD>
        <TD WIDTH=9% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                125,132</FONT></TD>
        <TD WIDTH=3% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR VALIGN="BOTTOM">
        <TD WIDTH=49% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                Retained earnings</FONT></TD>
        <TD WIDTH=4% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                97,745</FONT></TD>
        <TD WIDTH=5% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=12% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                109,241</FONT></TD>
        <TD WIDTH=9% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                82,815</FONT></TD>
        <TD WIDTH=3% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR VALIGN="BOTTOM">
        <TD WIDTH=49% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                Accumulated other comprehensive loss</FONT></TD>
        <TD WIDTH=4% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                (754</FONT></TD>
        <TD WIDTH=5% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT></TD>
        <TD WIDTH=12% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                (222</FONT></TD>
        <TD WIDTH=9% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                (1,479</FONT></TD>
        <TD WIDTH=3% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT></TD>
</TR>

<TR VALIGN="top">
        <TD WIDTH=49% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                Note receivable for common stock</FONT></TD>
        <TD WIDTH=4% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                -&nbsp;&nbsp;</FONT><HR WIDTH=100% SIZE=1 NOSHADE></TD>
        <TD WIDTH=5% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=12% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                (65</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TD>
        <TD WIDTH=9% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                (65</FONT><HR WIDTH=100% SIZE=1 NOSHADE></TD>
        <TD WIDTH=3% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                )</FONT></TD>
</TR>

<TR VALIGN="BOTTOM">
        <TD WIDTH=49% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=4% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                223,293</FONT><HR WIDTH=100% SIZE=1 NOSHADE></TD>
        <TD WIDTH=5% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=12% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                234,997</FONT><HR WIDTH=75% SIZE=1 NOSHADE></TD>
        <TD WIDTH=9% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                206,403</FONT><HR WIDTH=100% SIZE=1 NOSHADE></TD>
        <TD WIDTH=3% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>

<TR VALIGN="BOTTOM">
        <TD WIDTH=49% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=4% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                $462,755</FONT><HR WIDTH=100% SIZE=3 NOSHADE></TD>
        <TD WIDTH=5% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=12% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                $469,212</FONT><HR WIDTH=75% SIZE=3 NOSHADE></TD>
        <TD WIDTH=9% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
        <TD WIDTH=9% align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                $457,377</FONT><HR WIDTH=100% SIZE=3 NOSHADE></TD>
        <TD WIDTH=3% align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                &nbsp;</FONT></TD>
</TR>
<!-- BLANK LINE--><TR><TD>&nbsp;</TD></TR>
<TR valign="TOP">
        <TD colspan=8 align="left"> <FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                Certain financial statement amounts have been reclassified in the
                prior periods to conform to current period presentation.</FONT></TD>
</TR>
</TABLE>
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<TR VALIGN=TOP>
        <TD COLSPAN=3 ALIGN="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
                10</FONT></TD>
</TR>
<TR VALIGN=TOP>
        <TD COLSPAN=3 ALIGN="center"><HR SIZE=5 NOSHADE></TD>
</TR>
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