Harrah's to Sell Assets

LAS VEGAS -- (PRESS RELEASE) -- Harrah's Entertainment, Inc. (NYSE:HET) announced it has signed a definitive agreement to sell the assets of Grand Casino Gulfport to Gulfside Casino Partnership, subject to the receipt of required regulatory approvals. The purchase price was not disclosed.

The agreement calls for the assets to be sold in an "as is" condition. Harrah's will retain all insurance proceeds. The transaction is expected to close by the end of the first quarter of 2006.

"We are fully committed to this state, and are excited about the opportunity to design and develop a first-class resort at our Biloxi site that will complement our substantial entertainment offerings in northwest Mississippi," said Anthony Sanfilippo, president of Harrah's Central Division. "And by selling these assets to our neighbors in Gulfport, we will give the owners of the Copa Casino site the additional space they need to develop an ambitious project of their own. This agreement is a significant step toward the rebuilding of the Mississippi Gulf Coast."

Harrah's Entertainment, Inc. is the world's largest provider of branded casino entertainment. Since its beginning in Reno, Nevada, 68 years ago, Harrah's has grown through development of new properties, expansions and acquisitions. Harrah's Entertainment is focused on building loyalty and value with its customers through a unique combination of great service, excellent products, unsurpassed distribution, operational excellence and technology leadership.