Harrahs Announces $165 Million Expansion

PRNewswire-FirstCall LAS VEGAS Nov. 19 :

Harrah`s Entertainment, Inc. today announced plans for a $165 million
expansion of the Harrah`s Rincon hotel-casino owned by the Rincon San
Luiseno Band of Mission Indians.
The expansion of the property, located near San Diego, California, will
more than triple the size of the hotel and includes a spa, a parking
garage, expansion of the casino floor and other facility enhancements. The
expansion, designed to transform the facility into a full-service
destination resort, is scheduled to be completed by the end of 2004.

The National Indian Gaming Commission has also approved the Tribe`s
extension of its agreement for HCAL Corporation, a Harrah`s subsidiary, to
manage the hotel-casino through November 14, 2010.

“This expansion marks another milestone for the Rincon tribe,” said John
Currier, Rincon Tribal Chairman. “We knew from the outset that Harrah`s
was the absolute best partner for us. Their expertise in casino management
has benefited us in many ways, including better education, health care,
and basic infrastructure services for our people. We look forward to what
this new chapter will bring.”
“We are deeply grateful to the Rincon Tribe for this expression of
confidence in our company,” said Gary Loveman, President and Chief
Executive Officer of Harrah`s. “In just over a year, the tribe and
Harrah`s have built a thriving, successful business in Southern
California, supported by a relationship of mutual trust and respect. We
are proud of our latest success in Indian Country, and determined to build
on the Harrah`s Rincon success story for years to come.”

Harrah`s Entertainment has approved an additional $165 million loan
guaranty to finance the expansion project.

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Founded 66 years ago, Harrah`s Entertainment, Inc. owns or manages through
various subsidiaries 25 casinos in the United States, primarily under the
Harrah`s brand name. 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.

More information about Harrah`s Entertainment is available on the
company`s Web site, http://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. You can identify these statements by the
fact that they do not relate strictly to historical or current facts.
These statements contains words such as “may,” “will,” “project,” “might,”
“expect,” “believe,” “anticipate,” “intend,” “could,” “would,” “estimate,”
“continue” or “pursue,” or the negative or other variations thereof or
comparable terminology. In particular, they include statements relating
to, among other things, future actions, new projects, strategies, future
performance, the outcome of contingencies such as legal proceedings and
future financial results. We have based these forward-looking statements
on our current expectations and projections about future events.

We caution the reader that forward-looking statements involve risks and
uncertainties that cannot be predicted or quantified and, consequently,
actual results may differ materially from those expressed or implied by
such forward- looking statements. Such risks and uncertainties include,
but are not limited to, the following factors as well as other factors
described from time to time in our reports filed with the Securities and
Exchange Commission:

* the effect of economic, credit and capital market conditions on the
economy in general, and on gaming and hotel companies in particular; *
construction factors, including delays, zoning issues, environmental
restrictions, soil and water conditions, weather and other hazards, site
access matters and building permit issues; * the effects of environmental
and structural building conditions relating to the company`s properties; *
our ability to timely and cost effectively integrate into our operations
the companies that we acquire; * access to available and feasible
financing; * changes in laws (including increased tax rates), regulations
or accounting standards, third-party relations and approvals, and
decisions of courts, regulators and governmental bodies; * litigation
outcomes and judicial actions, including gaming legislative action,
referenda and taxation; * ability of our customer-tracking,
customer-loyalty and yield-management programs to continue to increase
customer loyalty and same-store sales; * our ability to recoup costs of
capital investments through higher revenues; * acts of war or terrorist
incidents; * abnormal gaming holds, and * the effects of competition,
including locations of competitors and operating and market competition.

Any forward-looking statements are made pursuant to the Private Securities
Litigation Reform Act of 1995 and, as such, speak only as of the date
made. We undertake no obligation to publicly update any forward-looking
statements, whether as a result of new information, future events or
otherwise.
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