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Harrah's Prairie Band Casino Contract Not Renewed

10 May 2005

LAS VEGAS -- (PRESS RELEASE) -- The Prairie Band Potawatomi Nation and Harrah's Kansas Casino Corporation, a subsidiary of Harrah's Entertainment, Inc. (NYSE:HET) today announced that Harrah's will not seek renewal of its management contract for Harrah's Prairie Band Casino.

Harrah's will continue to operate the property until its contract expires in January 2008, while working with tribal officials to prepare for a seamless transition of operations to the Nation. Harrah's has managed the property on behalf of the Nation since it opened in January 1998.

"The Prairie Band Potawatomi Nation and Harrah's have been a very successful owner and management team since 1998," said Zach Pahmahmie, chairman of the Prairie Band Potawatomi Nation. "The Nation is honored for the 10 years' management experience we'll have gained by the end of our agreement with Harrah's in 2008. We expect a smooth transition in the remaining years of our management agreement between the Nation and Harrah's."

"We have long understood that the Nation's ultimate goal is self-management, and believe the tribe will be well-prepared for this transition," said Carlos Tolosa, president of Harrah's Eastern Region. "Harrah's is proud to have worked with the Nation in building a successful business, and we're confident their resort will continue to thrive for years to come."

Various subsidiaries of Harrah's Entertainment, Inc. own or manage 25 casinos in the United States, primarily under the Harrah's and Horseshoe brand names. Founded 67 years ago, 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.

 
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