Park Place Statement on $1.8 Billion Judgment

LAS VEGAS, July 2, 2002 - Park Place Entertainment Corporation (NYSE: PPE), the world`s largest gaming company, today issued the following statement regarding the Department of Interior`s declaration that a Tribal Court judge who entered a $1.8 billion judgment against the company was not legally appointed and that her “rulings are not recognized by the Department as expressions of tribal law.”

The statement should be attributed to Park Place Executive Vice President and Chief Legal Officer Kim Sinatra.

“The Department of the Interior, in a June 26 letter to U.S. Magistrate David E. Peebles, said in clear and unambiguous language that the Tribal Court judge who entered a $1.8 billion judgment against the company in March 2001 was not legally appointed and had no legal authority to take that action.
“Specifically, the Department said: `...the person representing herself as the tribal judge was not appointed or elected pursuant to the Tribe`s Judiciary Act, and her rulings are not recognized by the Department as expressions of tribal law.`

“We believe this declaration by the Department strongly supports our often-stated position that the Tribal Court`s judgment against Park Place is null and void, and we intend to introduce this statement into evidence in the court cases currently pending on this issue.

“We will continue to work closely with the legitimate and legally recognized Tribal Council chiefs to help the Saint Regis Mohawk Tribe achieve its goal of building a world-class casino resort in New York`s Catskill Mountains - a resort that will bring economic opportunity to the Tribe and economic development to the region.”
Park Place Entertainment is the world`s largest gaming company. Park Place owns, manages or has an interest in 28 gaming properties operating under the Caesars, Bally`s, Flamingo, Grand Casinos, Hilton and Paris brand names with a total of approximately two million square feet of gaming space, more than 28,000 hotel rooms and 55,000 employees worldwide.

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Additional information on Park Place Entertainment can be accessed through the company`s 24-hour investor relations service. Individuals may call toll-free 877-PPE-NYSE (877-773-6973) or visit www.parkplace.com to obtain the latest company news and stock price information, or to request information by email, fax or postal mail delivery.

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