Harrah's Presents Pittsburgh Proposal - Thursday 20th of April 2006

PITTSBURGH, Pennsylvania – Forest City Enterprises(NYSE: FCEA; FCEB) and Harrah's Entertainment, Inc. (NYSE: HET) todaypresented their plan for investing more than $1 billion at Station Squareto the Pennsylvania Gaming Control Board during public hearings held inPittsburgh. The two industry leaders reiterated their commitment andability to generate the most revenues for the state, Allegheny County, Cityof Pittsburgh, and Pittsburgh School District. The plan includessubstantial new investment in support of a revitalized downtown Pittsburgh,a $512 million casino, a community partnership with the Pittsburgh History& Landmarks Foundation, and the creation of a new charitable foundationheaded by Franco Harris.

"We're excited about the tremendous potential of bringing the Harrah'sbrand to western Pennsylvania's premier tourist destination," said CharlesAtwood, chief financial officer of Harrah's Entertainment. "We plan tocreate a first-class gaming, retail, and dining experience, one that webelieve, when combined with our industry-leading customer loyalty program,will complement and expand Pittsburgh's tourism industry."

Brian Ratner, director of Forest City Enterprises outlined the group'ssupport of the multi-purpose arena financing plan: "We are looking forwardto the opportunity to work with the government to execute a plan toconstruct a new arena. We believe the Arena Funding Plan offered byGovernor Rendell, Executive Onorato and Mayor O'Connor is a great approachto financing a new multi-purpose Arena." Ratner continued, "Once thePenguins commit to staying in Pittsburgh as an integral part of thecommunity, the Harrah's Station Square team welcomes the opportunity tofinalize the terms of our participation."

The plan expands Station Square into a bustling, new, urban mixed-useresidential and entertainment community. This will include ground-floorretail, sidewalk dining and cafe eateries, a 400,000-square-foot, $512million Harrah's Station Square Casino with 3,000 slots, an additional 200rooms at the adjacent 400-room Sheraton Station Square Hotel, and 1,250residential condominium units. All of these new elements will be connectedby pedestrian scaled streets, creating a neighborhood look and feel. Theresidential units will have porches and stoops, accompanied by new parksand a riverside esplanade offering improved river access. With more than 50acres at Station Square, the plan also allows for future expansion of thecasino to 5,000 slots and the creation of a new hotel tower with 300-500rooms.

"Harrah's Entertainment is committed to creating compelling gamingentertainment experiences in the markets in which we operate," Atwood said."This translates into the greatest economic impact for the City ofPittsburgh and the Commonwealth of Pennsylvania: More jobs, greaterproperty and wage tax relief, and more opportunities for local businesses."

Jesse Fife, Jr., Executive Vice President and Chief Operating Officer,spoke in support of the Harrah's Station Square proposal, explaining therole his institution will play should the license be awarded to the group.

"Our organization is deeply committed to the future of this region andwe entered into a partnership with Harrah's Station Square because werealized their plan offers a unique opportunity to create a diverseworkforce development program and good paying jobs in this region. Bidwellwill serve as the training ground for many of the projected employees thatHarrah's will need to sustain a successful casino in Pittsburgh," Fifesaid. "As we evaluated this partnership, it became clear to us thatHarrah's Station Square is the applicant that has the capacity to createthe most jobs for our region. Their human resources, employment trackrecord and commitment to diversity is unparalleled in the industry and hasbecome the benchmark for every other player in the casino industry. Equallyimportant, Harrah's is a company that understands how to createopportunities for inner city, disadvantaged populations."

Brian Ratner, director of Forest City Enterprises, outlined thefindings of a transportation impact study conducted by nationallyrecognized transportation engineering firm DKS Associates, and Pittsburgh'sGAI Consultants. "Station Square is uniquely positioned to absorb theenhanced visitation a casino will bring from a transportation standpoint.Its location on the west side of Station Square allows for the bestintegration into the overall site and offers the only location thatbenefits from all modes of transportation - interstate highway, river,light rail, bus, pedestrian and incline," Ratner said. "We also will tap aninterstate system that will take traffic off of Carson Street, theSmithfield Street Bridge and the downtown area. When combined with theassets already in place at Station Square and Bessemer court and theadditional retail that will be developed, this development will create a'spine line' or Main Street concept that will connect a dynamicmulti-purpose, mixed use Station Square and a vibrant, walkable community."

Forest City and Harrah's also reviewed their significant philanthropiccommitment to Pittsburgh, both now and in the long-term, that will berealized should they secure the license to develop a casino, as follows:

- The Forest City/Harrah's development proposal will enable the Pittsburgh History and Landmarks Foundation to establish an endowment of $25 million. Proceeds to the Pittsburgh History and Landmarks Foundation will be invested with its existing funds and used to support and expand programs to revitalize inner city neighborhoods.

- In addition, the Forest City/Harrah's development proposal will give a total of more than $1 million a year through a foundation to support the community. Half of the funds must be used in neighborhoods with a 60 percent or higher minority population. Franco Harris will lead the effort to give these funds back to the community. This money will be made available as soon as the license is secured.

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