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Caesars Completes Sale of South African Casino Interests

LAS VEGAS -- (PRESS RELEASE) -- Caesars Entertainment Inc. (NYSE: CZR), one of the world's leading gaming companies, today completed the sale of its ownership and management interests in Caesars Gauteng, a casino resort near Johannesburg, South Africa, for approximately $145 million. Net after-tax cash proceeds from the sale are expected to be approximately $100 million, which will be used to reduce outstanding debt under the company's credit facility.

Under the terms of the transaction, Peermont Global Limited, a South African luxury hotel and casino company, and its economic empowerment partner, Marang (East Rand) Gaming Investments, jointly acquired the 25 percent interest held by Caesars' South African affiliate in the company that owns Caesars Gauteng. Peermont also acquired Caesars' 50 percent interest in the company that manages the South African casino resort.

Caesars Entertainment expects to record a pre-tax gain of approximately $95 million on the transaction in the first quarter of 2005.

Situated near the Johannesburg International Airport, Caesars Gauteng features 276 guest rooms and suites, a casino with 1,640 slot machines and 67 table games, ten restaurants, an award-winning spa, a 1,000-seat showroom, an indoor roller coaster and theme park, a unique retail concourse and extensive conference facilities. As a result of the transaction, the resort is being re-branded.

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