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Harrah's to Build New Orleans Hotel Tower

LAS VEGAS – (Press Release) --Harrah's Entertainment, Inc. (NYSE: HET) announced its Board of Directors approved the construction of a $142 million, 450-room hotel tower at Harrah's New Orleans Casino.

The 26-story tower is expected to open in early 2006.

"Since our casino opened five years ago, Harrah's has drawn millions of tourists to the New Orleans market," said Anthony Sanfilippo, Harrah's Central Division President. "Our guests want to experience not only the finest in casino entertainment, but also the incomparable excitement and energy of New Orleans and the French Quarter. This hotel will give us the ability to host our most loyal guests from throughout the country in New Orleans, which will provide an additional boost to the New Orleans tourism industry."

As part of the project, which was unanimously approved by the New Orleans City Council in November, two 19th Century-era buildings will be returned to commercial use as part of the Fulton Street retail development. Gordon Biersch Brewery Restaurant will anchor Fulton Street when it opens its 11,000- square-foot restaurant in the second half of 2004.

A third existing building will be incorporated into the hotel, and the facades of the two Poydras Street buildings will be included in the hotel's design.

Harrah's New Orleans was granted the right to develop and operate up to 450 hotel rooms under a bill passed by the state legislature in 2001. Project design is being handled by Billes/Manning Architects of New Orleans and Marnell Carrao Associates of Las Vegas. Construction will be led by a joint venture between Carl E. Woodward, LLC, of New Orleans, and Walton Construction Co. of Kansas City, Mo., in alliance with Broadmoor, LLC, of Metairie, La.

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