Colonial Holdings, Inc.
             10515 Colonial Downs Parkway, New Kent, Virginia 23124

March  21,  2001                       CONTACT:  Ian  M.  Stewart
                                                 (804)  966-7223
FOR  IMMEDIATE  RELEASE                President  and  Chief  Financial  Officer


      KOSLO RESIGNS AS DIRECTOR, PESKOFF APPOINTED TO FILL VACANCY AND CHAIR
                              INDEPENDENT COMMITTEE

     NEW  KENT,  Va.  --(BUSINESS  WIRE)-March 21, 2001--Colonial Holdings, Inc.
(NASDAQ:  OTC:  CHLD) (the "Company") which, through its subsidiaries, holds the
only licenses to own and operate a pari-mutuel horse-racing course and satellite
racing  centers  in  Virginia  announced  today  that William J. Koslo, Jr., had
resigned  from  its Board of Directors.  Koslo resigned his position as Director
of  Colonial  Holdings due to demands from his other commitments.  Mr. Koslo had
been  a  director  of  the  Company  since  March  of  1997.

     Colonial  Holdings  also announced that Stephen Peskoff, a former member of
its  Board  of  Directors,  consultant  of Friedman, Billings, Ramsey & Co., and
President of Underhill Investment Corp., has been appointed to fill the Director
position  vacated  by Mr. Koslo. Additionally, Peskoff was appointed to serve as
the  Chairman of the recently constituted Independent Committee of the Company's
Board of Directors which is charged with the task of reviewing and analyzing the
merger  proposal  received  from entities affiliated with Mr. Jeffrey P. Jacobs,
the  Chairman  and  Chief  Executive Officer of the Company, and considering the
Company's  alternatives,  in  light  of  that  proposal.