Video: Harrah's Entertainment and Jimmy Buffett Unveil Plans for New Margaritaville Casino and Resort in Biloxi

Video: Harrah's Entertainment and Jimmy Buffett Unveil Plans for New Margaritaville Casino and Resort in Biloxi

* Simon Property Group to develop retail experience

* $704m single largest development investment in Mississippi since Hurricane Katrina; Continuation of Harrah's commitment to Biloxi, Gulf Coast

BILOXI, Miss., May 16 /PRNewswire-FirstCall/ -- Harrah's Entertainment, Inc. (NYSE:HET), along with world-renowned singer and songwriter Jimmy Buffett, today unveiled plans for a new Gulf Coast destination; Margaritaville Casino & Resort on the shores of Biloxi. The Margaritaville project is expected to cost more than $700 million, representing the single largest investment in Mississippi since Hurricane Katrina. The company expects this to be the first phase of a development that may cost more than $1 billion.

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"I am privileged to announce Harrah's plans for Margaritaville Casino & Resort in Biloxi," said Gary Loveman, chairman, chief executive officer and president. "Along with Jimmy Buffett, we plan to develop the next generation destination resort on the Gulf Coast. This project of more than $700 million dollars is vital to supporting the rebirth of Mississippi's tourism industry."

"I have always considered myself a 'Gulf Coast kid,' said singer / songwriter Jimmy Buffett. "I was born there, grew up there and jumped on a stage for the first time there, before hitting the road. I have seen the world, traveled to distant shores, written a few songs and lived a few tall tales along the way, and now it is good to be coming back home."

"I have seen the best and the worst of times along Mississippi Sound, and as a survivor of storms myself, I feel an enormous sense of gratitude and good fortune to be part of the re-birth of the region by joining forces with Harrah's to bring the Margaritaville Casino & Resort 'Down around Biloxi,'" continued Buffett. "One of the essential elements of life along the Gulf Coast is the Creole belief that hard work and good fun go hand in hand. So, with that in mind I say, 'Let's get to work and let's let the good times roll again,'" he continued.

"Margaritaville Casino & Resort represents Harrah's ongoing commitment to, and vision for, Biloxi, the tourism industry in Mississippi, and the regeneration of the entire Gulf Coast," said Charles Atwood, vice chairman, Harrah's Entertainment. "This development will include many exciting and diverse dining, entertainment and retail experiences that will be unique to the Gulf Coast region. We are pleased that Simon Property Group, the largest retail real estate company in North America, will be partnering with us to deliver such a significant retail development to the Gulf Coast area."

"We're delighted to join Harrah's and Jimmy Buffett in today's announcement and bring a first-class retail center to complement the hotel and casino and continue the recovery on the Gulf Coast," said David Simon, chief executive officer, Simon Property Group, Inc. "We expect that there will be a multitude of restaurant and entertainment options in our portion of the development that will only add to visitors' enjoyment of the Margaritaville Casino & Resort."

"Harrah's is bringing together unique and energizing parties as it takes the leadership role in the redevelopment of the Mississippi Gulf Coast with the size and scope of this project," said John Payne, president, Central Division for Harrah's. "The heart and soul of Margaritaville Casino & Resort, Pascagoula, MS-native Jimmy Buffett, is a world class talent unto himself. Along with Simon Property Group's expertise in retail real estate operations, Margaritaville Casino & Resort promises to be a destination resort which will be amongst the finest in the Southeastern United States."

Margaritaville Casino & Resort features

Margaritaville Casino & Resort will be developed on 46 acres of land south of U.S. Highway 90 in Biloxi on the site formerly occupied by Grand Casino and Casino Magic. With a projected development start date of summer 2007, the Margaritaville Casino & Resort project features include:

* Approximately 100,000 square feet of casino floor;
* 250,000 square feet of retail space;
* Approximately 66,000 square feet of meeting space;
* 420 new hotel rooms;
- 378 renovated hotel rooms;
* Pool deck area with cabanas, bar, and tropical landscaping;
* Full-service Spa;
* Summer 2007 projected project start date; and
* Spring 2010 projected completion date.

Harrah's in Mississippi

Harrah's Entertainment owns branded gaming and resort destinations in Tunica and Biloxi, Mississippi. The following represents an overview of the corporation's economic impact to the state:

* 2006 Wages paid in-state $139,843,098.69
* Paid more than $113 million in gaming, sales, employment, and other
taxes for operations in the state; and
* Paid more than $113 million in gaming, sales, employment, and other
taxes for operations in the state; and
* Paid more than $113 million in gaming, sales, employment, and other
taxes for operations in the state; and

Corporate Social Responsibility

Harrah's Mississippi casinos are particularly active in their support of Boys and Girls Clubs of the Gulf Coast. In 2005, two of the company's properties hosted major fundraisers for the group, which together netted more than $200,000. Early in 2006, Gulf Coast employees hosted a Clean-Up Day, during which volunteers spent the day at the Boys and Girls Club Forrest Heights Unit and the Boys and Girls Club Lundy's Unit to clean, paint and repair the facilities.

Harrah's Entertainment strives to share its success with its communities, making them vibrant places to work and live. The company offers support through donations and sponsorships, public and private partnerships, and encouraging employee volunteerism. In 2006, Harrah's and its Foundation distributed $76.8 million or, on average, nearly $1.5 million a week in community contributions. Additional information can be found at www.harrahscommunityrelations.com.

In 2006, major grants were awarded to many prominent local organizations. Gifts included a $25,000 community partnership grant for the National Civil Rights Museum; a $25,000 grant for the Memphis Jewish Federation's Senior Lunch Program; a $25,000 community partnership grant for the American Heart Association; and a $25,000 donation to the Biloxi Alzheimer Association.

Hurricane Katrina Relief and Recovery

Even before Hurricane Katrina made landfall in August 2005, Harrah's had sprung headlong into recovery mode. When the storm's brute force shuttered our New Orleans property and utterly destroyed our riverboats in Gulfport and Biloxi, Miss., Harrah's had already created makeshift emergency shelters and information centers to give employees and other local residents safe places to stay, access to basic necessities, and resources to find housing and communicate with family members.

The Harrah's Employee Recovery Fund, seeded with a $1 million commitment from the Harrah's Foundation, ultimately swelled to $6.6 million thanks to generous employees, customers, business partners, community leaders, Harrah's entertainers and an additional $500,000 gift from the Foundation. Ultimately, a total of $8.1 million in grants, loans and relocation assistance was distributed to victims of Hurricanes Katrina and Rita.

Within weeks, employee Information Centers were opened in Gulfport, Lake Charles and Baton Rouge, providing Harrah's employees with basic necessities -- including on-site medical care -- and with resources to help them find housing, communicate with family members, and cope with the devastation they'd experienced.

Harrah's Entertainment, Inc. is the world's largest provider of branded casino entertainment. Since its beginning in Reno, Nevada nearly 70 years ago, Harrah's has grown through development of new properties, expansions and acquisitions, and now owns or manages casinos on four continents. The company's properties operate primarily under the Harrah's, Caesars and Horseshoe brand names; Harrah's also owns the London Clubs International family of casinos. 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.

More information, please visit Harrah's Web site at -- www.harrahs.com.

About the Harrah's Foundation

The Harrah's Foundation is a private, 501(c)(3) foundation established to provide financial support to qualified organizations in communities where Harrah's employees live and work. Established in 2002, The Foundation supports social reinvestment programs by funding eligible 501(c)(3) organizations dedicated to seniors, education and civic programs. Since its formation, it has committed nearly $21 million to nonprofit organizations throughout the United States. More information is available at: www.harrahscommunityrelations.com.

This release 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, new projects, strategies, future performance, the outcomes of contingencies and future financial results of Harrah's. These forward-looking statements are based on current expectations and projections about future events.

Investors 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 of Harrah's 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 Securities and Exchange Commission (including the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" contained therein): the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement with TPG and Apollo; the outcome of any legal proceedings that have been, or will be, instituted against the Company related to the merger agreement; the inability to complete the merger due the failure to satisfy conditions to completion of the merger, including the receipt of all regulatory approvals related to the merger; the failure to obtain the necessary financing arrangements set forth in the debt and equity commitment letters delivered pursuant to the merger agreement; risks that the proposed transaction disrupts current plans and operations and the potential difficulties in employee retention as a result of the merger; the impact of the substantial indebtedness to be incurred to finance the consummation of the merger; the effects of local and national economic, credit and capital market conditions on the economy in general, and on the gaming and hotel industries in particular; construction factors, including delays, increased costs for labor and materials, availability of labor and materials, 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; access to available and reasonable financing on a timely basis; the ability to timely and cost-effectively integrate acquisition into our operations, including London Clubs; 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 same store sales or hotel sales; our ability to recoup costs of capital investments through higher revenues; acts of war or terrorist incidents or natural disasters; 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. Harrah's 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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Source: Harrah's Entertainment, Inc.

CONTACT: Alberto Lopez of Harrah's Entertainment, Inc., +1-702-407-6344

Web site:

http://www.harrahscommunityrelations.com/

Web site:

http://www.harrahs.com/

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