Harrah's Launches Relief Effort

LAS VEGAS – (PRESS RELEASE) -- Harrah's Entertainment, Inc. (NYSE:HET) today announced a plan to provide its employees in the affected Gulf Coast communities with much-needed emergency relief supplies and money in the wake of Hurricane Katrina. Harrah's will continue providing its more than 6,000 employees from the casinos in Biloxi, Gulfport and New Orleans with their regularly scheduled base pay for up to 90 days. In addition, Harrah's announced the establishment of the Harrah's Employee Recovery Fund with an initial $1 million grant from the Harrah's Foundation.

"Our main priority is for our employees to focus on taking care of themselves and their loved ones," said Gary Loveman, Harrah's Entertainment chairman, chief executive officer, and president. "To help them in the near-term as the Gulf Coast begins the recovery from this devastating hurricane, Harrah's will continue to provide base-pay to our employees for up to 90 days.

"In addition to providing immediate relief, the Harrah's Employee Recovery Fund will help our employees with the long rebuilding task," he continued. "Along with the Harrah's Foundation grant to the recovery fund, we began distributing payroll deduction contribution forms to all of our nearly 100,000 Harrah's employees nationwide so they have the opportunity to pitch in and support the relief efforts. I'm asking all of Harrah's business partners to join us with their contributions to this important recovery fund."

Harrah's relief plan covering its three properties - Grand Casino Biloxi and Grand Casino Gulfport in Mississippi, and Harrah's New Orleans - includes:

-Ensuring the regularly scheduled base-pay of more than 6,000 employees;

-The creation of the Harrah's Employee Recovery Fund;

-We are planning to establish employee relief emergency centers located in Gulfport and New Orleans, pending the ability to move into the area with Harrah's personnel;

-The convention center at the Grand Tunica opened as an American Red Cross shelter for anyone seeking refuge. We continue to offer food and water, bedding and facilities to those using the shelter;

-Our Harrah's Entertainment facilities in Bossier City and Lake Charles, Louisiana, also are working closely with the American Red Cross to provide water, food and supplies for refugees. If the local shelters become too full, we have offered our facilities in both locations as overflow shelters;

-Harrah's Strategic Sourcing team is working with our vendors and others to gather emergency supplies for distribution as soon as we are permitted to return to our communities; and

-Volunteers from nearby properties are being assembled to quickly provide direct assistance to those in need. Staging centers are being designated to receive all supplies and coordinate volunteer efforts, as well as to ensure that donations are being sent to the areas of most immediate need.

As more definitive news and damage assessments become available, Harrah's will take additional steps to bolster relief efforts, and actively participate in the rebuilding of these vital communities.