First Phase of Grand Casino Biloxi Reopening - Wednesday 22nd of March 2006

MISSISSIPPI – Harrah's Entertainment, Inc. (NYSE:HET) today announced plans to reopen Grand Casino Biloxi this summer, in the first phase of plans to create a destination resort on the Mississippi Gulf Coast.

Pending regulatory approval, Grand Casino Biloxi is expected to reopen in mid- to late summer 2006, following an extensive renovation project. The property's existing land-based facilities, including the Bayview Hotel tower and the convention center, will be completely redesigned and rebuilt into a casino and a 500-room hotel, featuring a steakhouse, a 300-seat buffet, a swimming pool, and a 16,000-square-foot full-service spa. The resort is expected to initially employ more than 1,000 people.

"We're excited to begin the process of rebuilding on the Mississippi Gulf Coast," said Gary Loveman, chairman, chief executive officer and president of Harrah's Entertainment. "The Grand will return with the kind of high-quality casino entertainment experience our customers have come to expect. We look forward to contributing to the restoration of the Gulf Coast's tourism industry, and to getting our employees back on the job as quickly as possible."

Karen Sock, formerly assistant general manager of Grand Casino Gulfport, will be named senior vice president and general manager of Grand Casino Biloxi, subject to regulatory approvals. Sock, with more than 20 years of experience in the gaming and hospitality industries, served as vice president of human resources at Harrah's New Orleans before joining Grand Casino Gulfport in June 2005. She will report to Tom O'Donnell, Harrah's Gulf Coast regional president.

The summer reopening will be the first step toward Harrah's development of a world-class resort in the Biloxi market. The project is in the design phase, focusing on the opportunities provided by the introduction of shore-based gaming. Harrah's expects to announce preliminary plans for this development in mid-2006.

"In the coming months and years we will develop our property in Biloxi into a true destination resort, building on the Mississippi Gulf Coast's position as a must-visit vacation spot," said Anthony Sanfilippo, president of Harrah's Central Division.

Harrah's Entertainment, Inc. is the world's largest provider of branded casino entertainment through its operating subsidiaries. Since its beginning in Reno, Nevada 68 years ago, Harrah's has grown through development of new properties, expansions and acquisitions. 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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