Harrah's Operating Company Commences Tender - Friday 2nd of June 2006

LAS VEGAS Harrah's Operating Company, Inc. (the "Company"), a wholly-owned subsidiary of Harrah's Entertainment, Inc. (NYSE:HET), today announced that it has commenced tender offers (the "Offers") for any and all of its outstanding 7.50% Senior Notes due January 15, 2009 (the "2009 Notes") and 8.00% Senior Notes due February 1, 2011 (the "2011 Notes" and, together with the 2009 Notes, the "Notes").

The Offers are being made upon and are subject to the terms and conditions set forth in the Offer to Purchase dated May 30, 2006 (the "Offer to Purchase") and the related Letter of Transmittal. Under the terms of the Offers, the purchase price for each $1,000 principal amount of 2009 Notes validly tendered and accepted for payment will be based on a fixed spread of 60 basis points, or 0.60%, over the yield to maturity based on the bid side price of the 4.875% U.S. Treasury Note due May 15, 2009. The purchase price for each $1,000 principal amount of 2011 Notes validly tendered and accepted for payment will be based on a fixed spread of 80 basis points, or 0.80%, over the yield to maturity based on the bid side price of the 4.875% U.S. Treasury Note due May 31, 2011. The yield to maturity of the reference U.S. Treasury Notes used in the fixed spread formulas will be set at 2:00 p.m. ET, on June 6, 2006 or a later date if the Offers are extended.

The Offers will expire at 5:00 p.m. ET, on June 8, 2006, unless the Offers are extended or earlier terminated. Tendered Notes may be withdrawn at any time prior to the expiration time. Payment of the purchase price for tendered Notes, plus accrued and unpaid interest up to the date of payment, will be paid in same-day funds on the next business day following the expiration of the Offers or as soon as practical thereafter. It is expected that payment will be made on June 9, 2006. The Company intends to raise proceeds through the issuance of securities to pay for all or a portion of the Notes purchased pursuant to the Offers. Alternatively, the Company may elect to use cash on hand, available borrowing under its credit facility or commercial paper programs to pay for the Notes purchased pursuant to the Offers.

Subject to applicable law and certain provisions in the applicable indenture governing the Notes, the Company may, in its sole discretion, waive any condition applicable to the Offers and may extend or otherwise amend the Offers. The Offers are not conditioned on a minimum amount of Notes being tendered.

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