Caesars Reports Record Financial Results

Caesars Entertainment, Inc. has reported record financial results for the quarter ended March 31, 2004. For the first quarter of 2004, the company reported record net income of $79 million, or $0.25 per fully diluted share. That represents a 93 percent increase from net income of $41 million, or $0.14 per fully diluted share, reported for the first quarter of 2003.Adjusted net income for the first quarter of 2004 was a record $71 million, or $0.23 per diluted share, an increase of 73 percent from adjusted net income of $41 million, or $0.14 per diluted share, recorded in the first quarter of 2003.

Adjusted net income for the first quarter of 2004 excludes results from the Las Vegas Hilton. Las Vegas Hilton results are being treated as “discontinued operations” pending the sale of the property, which is expected to close in the second quarter of 2
004. Adjusted net income for the first quarter of 2003 excludes results from the Las Vegas Hilton and $1 million in pre-opening expense associated with the debut of the Celine Dion show, “A New Day….” at The Colosseum at Caesars Palace.

Net revenue for the first quarter of 2004 was a record $1.196 billion, compared to $1.086 billion in the first quarter of 2003. First quarter EBITDA - earnings before interest, taxes, depreciation and amortization and other charges - was a record $312 m
illion, up 17 percent from the $267 million in EBITDA reported for the first quarter of 2003.

“In our first quarter as Caesars Entertainment, we showed substantial strength in all of our regions,” said Caesars Entertainment President and Chief Executive Officer Wallace R. Barr. “We posted record results in the West, and reported our second-best
performance ever in the Mid-South. In the East, our results were significantly better than expected, given increased health care costs and the presence of new competition.

“Our performance demonstrates that our strategy is working. We’re doing a better job of managing the resources that we have and we continue to make disciplined investments that are paying off for the company and our shareholders,” Barr added.

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