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Harrah's Entertainment to Appeal Station Casinos Patent Ruling

22 June 2004

LAS VEGAS – (PRESS RELEASE) -- Harrah's Entertainment, Inc. (NYSE: HET) said it plans to appeal a recent decision by the United States District Court for the District of Nevada granting a Station Casinos, Inc. motion for summary judgment in patent litigation between the two companies.

Harrah's sued Station in July 2001 over infringement of Harrah's national customer-recognition system and methods patents (U.S. patent Nos. 5,761,647 and 6,183,362) (the "Customer Recognition Patents") and its patent involving the activation of physical instrumentalities through the use of a customer reward card (U.S. patent No. 6,003,013) -- the "013 Patent".

In granting Station's motion, the District Court last month ruled that Harrah's Customer Recognition Patents and a portion of the 013 Patent are invalid. The District Court denied other motions by Station seeking to invalidate and render unenforceable the patents. The District Court has additional motions pending with respect to the portion of Harrah's 013 Patent claims that are not affected by the invalidity ruling. Harrah's will dismiss the unaffected 013 Patent claims, and will not pursue those claims against Station.

"We expect that a dismissal of our remaining claims relating to the 013 Patent will enable us to expedite an appeal of the trial court's ruling on our Customer Recognition Patents and resolve our claims as promptly as possible," said Stephen Brammell, Harrah's senior vice president and general counsel. "A substantial percentage of trial court rulings in patent litigation are overturned on appeal. We are confident that we will prevail on appeal and that our patents will be found to be valid and enforceable. We will continue to vigorously protect our patents against infringing parties."

Founded 66 years ago, Harrah's Entertainment, Inc. owns or manages through various subsidiaries 25 casinos in the United States, primarily under the Harrah's brand name. Harrah's Entertainment is focused on building loyalty and value with its target customers through a unique combination of great service, excellent products, unsurpassed distribution, operational excellence and technology leadership.

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