LAS VEGAS--(BUSINESS WIRE)--06/18/2004--Caesars Entertainment, Inc. (NYSE:CZR) today announced that it has completed the previously announced sale of the Las Vegas Hilton to an affiliate of Colony Capital, LLC, a Los Angeles-based international private investment firm, for approximately $280 million.

   The company will use the proceeds from the sale -- estimated at $265 million after taxes -- to reduce its indebtedness to approximately $4.2 billion. After applying the proceeds of the sale, debt reduction since the beginning of 2002 will total more than $1.1 billion.

   Caesars Entertainment expects to report an after-tax gain on sale in the second quarter of approximately $85 million. The final purchase price for the property is subject to an adjustment for changes to working capital, which will be calculated following the closing.

   "The sale of the Las Vegas Hilton will advance our overall business strategy by enabling us to pay down additional debt and focus our attention on our core assets at the center of the Las Vegas Strip," said Caesars Entertainment President and Chief Executive Officer Wallace R. Barr. "The new owners of the legendary Las Vegas Hilton have a strong track record and are in an excellent position to ensure a bright future for the property and its world-class employees," Barr added.

   "This is a one-of-a-kind asset and we look forward to repositioning the property and recapturing its luster as one of the great resorts of the world," said Thomas J. Barrack, Jr., Chairman and CEO of Colony Capital. Nicholas L. Ribis, Vice Chairman of Colony Resorts LVH Acquisitions, LLC ("Colony LVH") added, "We are excited about operating one of the best-known resorts in the world and being a part of the number one gaming market in the world."

   Colony LVH will invest up to $67 million over a four-year period to renovate the hotel, including updates to the guest rooms, restaurants and casino area and will focus on developing convention business for the hotel.

   Under the terms of the agreement, Colony LVH has purchased all of the assets of the Las Vegas Hilton Hotel and Casino, and has assumed certain related current liabilities.

   Colony LVH has entered into an agreement with Hilton Hotels Corporation pursuant to which the hotel will continue to use certain elements of the Hilton brand, primarily The Hilton Reservation System. The firm intends to continue the operation of the property as a hotel-casino, and may construct additional facilities on land that is currently unused.

   Colony owns Resorts International in Atlantic City and is a partner in Accor Casinos in Europe.

   Opened in July, 1969 as The International, then the largest hotel in Las Vegas, the Las Vegas Hilton immediately took its place as the home of legendary entertainment. Barbra Streisand was the featured performer at the opening gala and Elvis Presley made his famous Las Vegas comeback at the hotel during its opening month.

   Rising 30 stories above the desert skyline, the hotel adjoins the 3.2 million-square-foot Las Vegas Convention Center. The resort features three distinct casinos, nearly 3,000 guest rooms and suites, 13 restaurants, a pool, spa and fitness centers and more than 200,000 square feet of conference space.