Caesars Entertainment Agrees to Sell Its Interest in Two Nova Scotia C

    Business Editors/Casino Writers

    LAS VEGAS--(BUSINESS WIRE)--May 17, 2005--Caesars Entertainment Inc. (NYSE: CZR) entered into a definitive agreement yesterday to sell its interest in the company that owns and operates two Nova Scotia gaming properties - Casino Nova Scotia Halifax and Casino Nova Scotia Sydney - for approximately US $70 million.
    Under the terms of the agreement, Great Canadian Gaming Corporation of Richmond, British Columbia, will acquire from a Caesars subsidiary its 95 percent ownership interest in Metropolitan Entertainment Group, a Nova Scotia partnership that owns and operates the two Nova Scotia casino properties under an agreement with the government-owned Nova Scotia Gaming Corporation.
    The transaction is expected to close by the end of the second quarter of 2005 and is subject to customary regulatory approvals and closing conditions outlined in the agreement.
    Casino Nova Scotia Halifax is a full-service gaming facility featuring 750 slot machines and 40 table games, along with three restaurants, a bar and conference facilities. The casino facility is adjacent to the Casino Nova Scotia Hotel, a 352-room hotel which is owned and operated by a Caesars subsidiary. Casino Nova Scotia Sydney is a full-service gaming facility within walking distance of all major downtown Sydney hotels. The facility features 387 slot machines and 11 table games, a restaurant and a bar.
    Great Canadian Gaming President and Chief Operating Officer Anthony Martin said, "The company is extremely pleased with the agreements to acquire Metropolitan Entertainment Group and looks forward to developing the Halifax and Sydney properties within the objectives of the Nova Scotia Gaming Corporation. The scope of the operations and regulatory environment of Nova Scotia is one in which we are both familiar and comfortable and believe our expertise will greatly benefit the two properties."

    About Great Canadian Gaming Corporation

    Great Canadian Gaming Corporation, home to more than 3,500 employees, is a multi-jurisdictional gaming and entertainment operator. Within British Columbia, the corporation operates six casinos, a thoroughbred racecourse, two standardbred racecourses, a community gaming centre, numerous licensed restaurants and a marina operation. In Washington State, through Great American Gaming Corporation, the Corporation operates four gaming and restaurant / entertainment facilities.

    About Caesars Entertainment

    Caesars Entertainment, Inc. (NYSE: CZR) is one of the world's leading gaming companies. With annual revenue of $4.2 billion, 24 properties on three continents, more than 25,000 hotel rooms, two million square feet of casino space and 50,000 employees, the Caesars portfolio is among the strongest in the industry. Caesars casino resorts operate under the Caesars, Bally's, Flamingo, Grand Casinos, Hilton and Paris brand names. The company has its corporate headquarters in Las Vegas.
    The company's Board of Directors in July 2004 accepted an offer from Harrah's Entertainment, Inc. to acquire the company for approximately $1.9 billion in cash and 67.9 million shares of Harrah's common stock. Shareholders of both companies approved the merger in separate meetings on March 11, 2005. The transaction is contingent on approval by federal and state regulatory agencies and is expected to close in the second quarter of 2005.
    Additional information on Caesars Entertainment can be accessed through the company's web site at www.caesars.com.

    Safe Harbor

    This document includes "forward-looking statements" intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. You can identify these statements by the fact that they do not relate strictly to historical or current facts. These statements contain words such as "may," "will," "project," "might," "expect," "believe," "anticipate," "intend," "could," "would," "estimate," "continue" or "pursue," or the negative or other variations thereof or comparable terminology. In particular, they include statements relating to, among other things, future actions, strategies, future performance, and future financial results of Caesars and Harrah's anticipated acquisition of Caesars. These forward-looking statements are based on current expectations and projections about future events.
    Readers are cautioned that forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that cannot be predicted or quantified and, consequently, the actual performance or results of Caesars may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to, the following factors as well as other factors described from time to time in our reports filed with the SEC, including Caesars Annual Report on Form 10-K for the year ended December 31, 2004 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2005, (including the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" contained therein): financial community and rating agency perceptions of Caesars, the effects of economic, credit and capital market conditions on the economy in general, and on gaming and hotel companies in particular; construction factors, including delays, zoning issues, environmental restrictions, soil and water conditions, weather and other hazards, site access matters and building permit issues; the effects of environmental and structural building conditions relating to our properties; the ability to timely and cost-effectively consummate Harrah's acquisition of Caesars and integrate Caesars properties into Harrah's operations; the loss of Caesars personnel in connection with Harrah's acquisition of Caesars; access to available and feasible financing, including financing for Harrah's acquisition of Caesars, on a timely basis; changes in laws (including increased tax rates), regulations or accounting standards, third-party relations and approvals, and decisions of courts, regulators and governmental bodies; litigation outcomes and judicial actions, including gaming legislative action, referenda and taxation; the ability of our customer-tracking, customer loyalty and yield-management programs to continue to increase customer loyalty and revenue; our ability to recoup costs of capital investments through higher revenues; acts of war or terrorist incidents; abnormal gaming holds; and the effects of competition, including locations of competitors and operating and market competition. Any forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995 and, as such, speak only as of the date made. Caesars disclaims any obligation to update the forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date stated, or if no date is stated, as of the date of this press release.

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CONTACT: Caesars Entertainment Inc., Las Vegas Josh Hirsberg, 702-699-5269 Investors email: hirsbergj@parkplace.com or Robert W. Stewart, 702-699-5043 Media email: stewartr@parkplace.com

KEYWORD: NEVADA INTERNATIONAL CANADA INDUSTRY KEYWORD: GAMING SOURCE: Caesars Entertainment Inc.

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