Harrah's Entertainment Announces Official Groundbreaking for Permanent Casino for Rincon Band of San Luiseno Mission Indians in Southern California

Business Wire, July 27, 2001

Business Editors

LAS VEGAS--(BUSINESS WIRE)--July 27, 2001

Harrah's Entertainment Inc. (NYSE:HET) announced the official groundbreaking ceremonies for construction of a permanent casino and luxury resort hotel on the Rincon Band of San Luiseno Mission Indians Reservation in Southern California are scheduled for July 31.

The $125 million facility, located approximately 25 miles from San Diego, will feature 45,000 square feet of gaming space, more than 1,500 slot machines, about 30 table games, 200 luxury rooms and suites, and six restaurants.

The project, to be managed by a wholly owned subsidiary of Harrah's Operating Co. Inc. for the Rincon Band, is expected to open in the fourth quarter of 2002.

"We have worked with a number of people over the years who promised us the world but gave us nothing," said Tribal Chairman John Currier. "Our partnership with Harrah's, as well as the National Indian Gaming Commission's approval and recognition of the opportunity this project presents to our people, are significant milestones for the Rincon Band.

"We look forward to working with Harrah's to provide Southern Californians with a first-class resort offering superior service, great accommodations and a high-quality casino-entertainment experience," he said.

Currier said the Rincon Band selected Harrah's to manage the resort because of the company's financial stability, reputation for building customer loyalty and experience in operating casinos on behalf of tribal partners across the United States. Harrah's manages Harrah's Ak-Chin in Phoenix, Harrah's Cherokee Smokey Mountains in North Carolina and Harrah's Prairie Band in Kansas.

"Harrah's has won contract extensions from the Ak-Chin Indian Community, the Eastern Band of Cherokee Indians and the Prairie Band Potawatomi Nation, indicating satisfaction with the partnerships and reinforcing our decision to work with the company," Currier said.

"We were honored to be selected to manage what will be the premier casino in Southern California, easily accessible to residents of San Diego, La Jolla, Del Mar, Escondido and Orange County," said Phil Satre, Harrah's Entertainment chairman and chief executive officer.

"We are also enthusiastic about the opportunity to introduce this resort to millions of loyal customers from around the country who frequent Harrah's brand properties when they travel," Satre said.

Tom Dingman, general manager, said the permanent casino will employ more than 1,000 persons. The permanent casino is being built near a temporary casino that opened under Rincon tribal management earlier this year.

Founded more than 60 years ago, Harrah's Entertainment Inc. is the most recognized and respected name in the casino-entertainment industry, operating 21 casinos in the United States under the Harrah's, Showboat, Rio and Players brand names.

With a combined database of more than 23 million players, Harrah's Entertainment is focused on building loyalty and value with its target customers through a unique combination of great service, excellent products, unsurpassed distribution, operational excellence and technology leadership.

Additional information about Harrah's Entertainment is available on the company's Web site, www.harrahs.com.

This release includes "forward-looking statements" intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by phrases such as the company "believes," "expects," "anticipates," "plans," "foresees," "forecasts," "estimates" or other words or phrases of similar import. Similarly, such statements herein that describe the company's business strategy, outlook, objectives, plans, intentions or goals are also forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements. Such risks and uncertainties include, but are not limited to, economic, bank, equity and debt-market condition, changes in laws or regulations, third-party relations and approvals, decisions of courts, regulators and governmental bodies, factors affecting leverage, including interest rates, abnormal gaming holds, construction disruptions and delays, ineffective marketing, effects of competition and other risks and uncertainties described from time to time in the company's reports filed with the U.S. Securities and Exchange Commission.