Harrah's, Caesars Complete Sale of Four Casinos to Colony Capital

LAS VEGAS-4/26/05-Harrah's Entertainment, Inc. (NYSE:HET) and Caesars Entertainment, Inc. (NYSE:CZR) today completed the sale of Harrah's East Chicago, Harrah's Tunica, Atlantic City Hilton and Bally's Tunica to an affiliate of Colony Capital, LLC. 

The Colony affiliate paid a combined total of approximately $1.24 billion for the four properties. 

Harrah's and Caesars sold the four properties in connection with the $9.4 billion merger agreement between the two companies announced July 15, 2004, although the sale was not conditioned on closing of the merger. Stockholders of both companies separately approved the merger on March 11, 2005. Harrah's and Caesars expect the merger to close in the second quarter of 2005, pending receipt of required regulatory approvals. 

Founded 67 years ago, Harrah's Entertainment, Inc. owns or manages through various subsidiaries 25 casinos in the United States, primarily under the Harrah's and Horseshoe brand names. Harrah's Entertainment is focused on building loyalty and value with its valued customers through a unique combination of great service, excellent products, unsurpassed distribution, operational excellence and technology leadership. 

Caesars Entertainment, Inc. (NYSE:CZR) is one of the world's leading gaming companies. With annual revenue of $4.2 billion, 24 properties on three continents, more than 25,000 hotel rooms, two million square feet of casino space and 50,000 employees, the Caesars portfolio is among the strongest in the industry. Caesars casino resorts operate under the Caesars, Bally's, Flamingo, Grand Casinos, Hilton and Paris brand names. The company has its corporate headquarters in Las Vegas. 

The company's Board of Directors in July 2004 accepted an offer from Harrah's Entertainment, Inc. to acquire the company for approximately $1.9 billion in cash and 67.9 million shares of Harrah's common stock. Shareholders of both companies approved the merger in separate meetings on March 11, 2005. The transaction is contingent on approval by federal and state regulatory agencies and is expected to close in the second quarter of 2005. 

More information about Harrah's and Caesars is available at their respective Web sites - www.harrahs.com and www.caesars.com. 

Colony Capital, LLC is a private, international investment firm focusing primarily on real estate-related assets and operating companies. Since 1991, Colony Capital has invested more than $13.9 billion in over 7,650 assets through various corporate, portfolio and complex property transactions. One of the few private investment firms licensed in gaming, Colony owns Resorts Atlantic City and the Las Vegas Hilton. Colony also is a partner in Accor Casinos in Europe. Colony has a staff of more than 100 and is headquartered in Los Angeles, with offices in New York, Boston, Hawaii, Paris, London, Madrid, Rome, Beirut, Hong Kong, Tokyo, Taipei, Shanghai and Seoul. For additional information visit www.colonyinc.com