Gaming News

Caesars to Sell Bally's Casino New Orleans

LAS VEGAS -- (PRESS RELEASE) -- Caesars Entertainment Inc., (NYSE: CZR) today announced that it has entered into a definitive agreement to sell Bally's Casino New Orleans to an affiliate of Columbia Sussex Corporation, a hotel, resort and casino operator based in Fort Mitchell, Kentucky, for approximately $24 million. The transaction is expected to close by the end of the second quarter of 2005 and is subject to customary regulatory approvals and closing conditions outlined in the purchase agreement.

"We are excited about the Bally's Casino New Orleans acquisition. We think it provides a great opportunity in the New Orleans market and we plan significant improvements and changes to the property," said William Yung, President of Columbia Sussex Corporation.

Under the terms of the agreement, Columbia Sussex will purchase certain assets of Bally's Casino New Orleans, and will assume certain related current liabilities. The aggregate consideration may be adjusted for changes in net working capital. Caesars Entertainment expects to report no material gain or loss on the transaction. Libra Securities is the exclusive financial advisor to Caesars Entertainment on the transaction.

Columbia Sussex and its affiliates are one of the largest privately held hotel owners in the country, and one of Marriott Corporation's top licensees. Columbia Sussex and its affiliates operate 64 hotels, resorts and casinos in 28 states and overseas, including the Lighthouse Point Casino in Greenville, Mississippi, the Horizon Casino Resort in South Lake Tahoe and the Westin Casuarina property on Grand Cayman Island. It has also recently opened the Westin Casuarina in Las Vegas, and purchased the River Palms Casino in Laughlin, Nevada.

Caesars Entertainment, Inc. (NYSE: CZR) is one of the world's leading gaming companies. With $4.5 billion in annual net revenue, 28 properties on four continents, 26,000 hotel rooms, two million square feet of casino space and 52,000 employees, the Caesars portfolio is among the strongest in the industry. Caesars casino resorts operate under the Caesars, Bally's, Flamingo, Grand Casinos, Hilton and Paris brand names. The company has its corporate headquarters in Las Vegas.

In July 2004, the Board of Directors of Caesars Entertainment approved an offer from Harrah's Entertainment to acquire the company for approximately $1.8 billion and 66.3 million shares of Harrah's common stock. The offer must be approved by shareholders of both companies and federal and state regulators before the transaction can close.

Additional information on Caesars Entertainment can be accessed through the company's web site at www.caesars.com .

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