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Harrah's Reports Results of Elections Regarding Merger

LAS VEGAS -- (PRESS RELEASE) -- Harrah's Entertainment, Inc. (NYSE:HET) today announced the merger consideration to be received by stockholders of Caesars Entertainment, Inc. in the acquisition of Caesars by Harrah's, which was completed on June 13, 2005.

Based on the final election results and the proration calculations made pursuant to the merger agreement, the merger consideration to be received by Caesars stockholders is as follows:

-A Caesars stockholder who validly elected to receive shares of Harrah's common stock will receive 0.2211 of a share of Harrah's common stock and $5.66 in cash for each share of Caesars common stock exchanged in the merger; and

-A Caesars stockholder who did not make a valid election will receive $17.75 in cash for every share of Caesars common stock exchanged in the merger.

Pursuant to the merger agreement, fractional shares of Harrah's common stock will not be issued. In lieu thereof, Caesars stockholders will receive cash based on the average closing sale price for Harrah's common stock for each of the ten consecutive trading days ending on June 10, 2005.

Harrah's has been informed by The Bank of New York, the exchange agent for the merger, that immediately prior to the effective time of the merger, there were 314,824,170 shares of Caesars common stock outstanding. Of these shares:

-307,059,463 of the shares, or 97.53%, elected to receive Harrah's common stock; and

-7,764,707 of the shares, or 2.47%, did not make a valid election and are deemed to have elected to receive cash.

Harrah's Entertainment, Inc. is the world's largest provider of branded casino entertainment. Since its beginning in Reno, Nevada 67 years ago, Harrah's has grown through development of new properties, expansions and acquisitions. On June 13, 2005, Harrah's Entertainment acquired Caesars Entertainment, Inc. and now owns or manages through various subsidiaries more than 40 casinos in three countries, primarily under the Harrah's, Caesars and Horseshoe brand names. With nearly 4 million square feet of casino space, more than 40,000 hotel rooms and nearly 100,000 employees, the Harrah's portfolio is the most diverse in the gaming industry. Harrah's Entertainment is focused on building loyalty and value with its customers through a unique combination of great service, excellent products, unsurpassed distribution, operational excellence and technology leadership.

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