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Caesars Entertainment to Sell Caesars Tahoe to Columbia Sussex

LAS VEGAS -- (PRESS RELEASE) -- Caesars Entertainment Inc., (NYSE: CZR) today announced that it has entered into a definitive agreement to sell its Caesars Tahoe casino resort to an affiliate of Columbia Sussex Corporation, a hotel, resort and casino operator based in Fort Mitchell, Kentucky, for approximately $45 million.

The purchase agreement with Columbia Sussex is subject to the right of the owner of the land on which the Caesars Tahoe property is located to purchase the property on the same terms as agreed to with Columbia Sussex. Under the terms of the Caesars Tahoe lease, that right must be exercised within 60 days.

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.

"This acquisition represents a great opportunity to purchase a superior asset in a region in which we have been familiar for 14 years. We look forward to the opportunity to re-brand this property to a new customer base appealing to a younger, hipper audience and remain competitive in light of the proliferation of Indian Gaming in California," said William Yung, President of Columbia Sussex Corporation.

Under the terms of the agreement, Columbia Sussex will purchase certain assets of Caesars Tahoe and will assume certain related current liabilities. The aggregate consideration may be adjusted for changes in net working capital. Libra Securities is the exclusive financial advisor to Columbia Sussex and Caesars Entertainment was represented by CB Richard Ellis on the transaction.

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