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Caesars Signs to Develop Fresno Casino

16 September 2004

LAS VEGAS -- (PRESS RELEASE) -- The leaders of the Big Sandy Band of Western Mono Indians and Caesars Entertainment, Inc. (NYSE: CZR), one of the world's leading gaming companies, have signed formal agreements that will govern the development, construction and management of the Tribe's planned new casino, to be built on Tribal land near Fresno, California. The total project cost is estimated at $250 million.

The management and related agreements establish the management fee that Caesars will receive from the Tribe; provide for payment of a development fee to the company; and assign obligations for funding the various portions of the project.

Plans for the Big Sandy project call for construction of a premier-quality casino resort on 48 acres of Tribal land near Fresno in the central San Joaquin Valley. The casino would become the second to directly serve the Fresno metropolitan area, which has a population of approximately 1.2 million.

The casino property initially would include 250 to 300 hotel rooms, more than 75,000 square feet of gaming space, at least 2,000 slot machines, approximately 20 gaming tables and a collection of restaurants, retail shops, meeting space and entertainment facilities. The company and the Tribe are discussing an appropriate brand for the casino.

"The Big Sandy Band of Western Mono Indians is proud to be working with one the largest casino operators in the world," said Big Sandy Rancheria Tribal Chairperson Connie Lewis.

"This collaboration will provide a new economic base for the Tribe and Fresno County. All parties involved will share in the economic benefits that this new casino will bring," Lewis added.

"We are pleased to be associated with the Big Sandy Tribe in this significant California gaming project," said Caesars Entertainment President and Chief Executive Officer Wallace R. Barr. "This casino resort will deliver millions of dollars of investment and thousands of local jobs to the region, in addition to providing substantial economic benefits to members of the Tribe."

Under the terms of the agreements:

-The Tribe and Caesars Entertainment will develop and construct the casino resort and other related facilities on Tribal lands.

-Caesars Entertainment will assist the Tribe in securing financing for the planned development.

-Caesars Entertainment will manage the casino and resort for an initial term of seven years, which is renewable upon the consent of both parties.

-Caesars Entertainment will receive a management fee of 30 percent of Net Total Revenue, as defined in the management agreement, from casino and resort operations. Net Total Revenue is analogous to the GAAP concept of pretax income.

-Caesars Entertainment will receive a one-time development fee of approximately $7 million for its assistance in planning and building the casino resort.

The Big Sandy Tribe currently operates the Mono Wind Casino in Auberry, California, about 15 miles northeast of the proposed Fresno-area casino.

The management agreement between Caesars Entertainment and the Tribe requires the approval of the National Indian Gaming Commission. In addition, the Tribe would have to amend its existing compact with the State of California, or negotiate a new compact for the new casino project. The project also is dependent on other regulatory approvals and contingencies.

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