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Caesars Entertainment Completes Sale of Interest in Casino Nova Scotia Properties to Great Canadian Gaming Corporation

6/1/2005 6:00:07 AM

Caesars Entertainment Inc. (CZR) today announced that it has completed the sale of 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.

Casino Nova Scotia Halifax is a full-service gaming facility featuring over 750 slot machines and 41 table games. Amenities include three licensed restaurants, conference facility, high limit gaming and is adjacent to several hotels including the Casino Nova Scotia Hotel, a 352 room hotel. Casino Nova Scotia Sydney is a full-service gaming facility within easy walking distance of all major downtown Sydney hotels. The facility features 387 slot machines and 11 table games. The facility features two licensed restaurants and a high limit gaming area.

Both the Halifax and Sydney Casinos are operated pursuant to an Operating Agreement between the Metropolitan Entertainment Group (MEG) and the Nova Scotia Gaming Corporation (NSGC). NSGC is a Crown corporation governed by the Gaming Control Act (Nova Scotia). The NSGC is responsible for the conduct and management of gaming in the Province of Nova Scotia. Under the Operating Agreement MEG is paid a fee for providing operational services for the NSGC at the Halifax and Sydney Casinos.

About Great Canadian Gaming Corporation

Great Canadian Gaming Corporation, home to more than 4,600 employees, is a multi-jurisdictional gaming and entertainment operator. In addition to the two casinos in Nova Scotia, 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. (CZR) is one of the world's leading gaming companies. With annual revenue of $4.2 billion, 22 properties on three continents, nearly 26,000 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.

NOTE: This press release contains "forward-looking statements" within the meaning of the federal securities law, which are intended to qualify for the safe harbor from liability provided thereunder. All statements which are not historical statements of fact are "forward-looking statements" for purposes of these provisions and are subject to numerous risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. Such forward-looking statements include statements regarding the company's strategy, the company's use of the sale proceeds, Great Canadian's plans for the property, the financial impact of this transaction on the company and future uses of the company's capital and resources. Risk factors which could cause actual results to differ from expectations include the closing of the transaction and/or the timing thereof and matters related to the sales and transition processes. Additional information concerning potential risk factors that could affect the company's future performance are described from time to time in the company's reports filed with the Securities and Exchange Commission, including the company's 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. The reports may be viewed free of charge at the following website: www.sec.gov. The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise.

SOURCE: Caesars Entertainment Inc.

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