As previously reported, the company�s 2000 results included the following restructuring and other special charges, which were recorded in the fourth quarter:

• Reserves of $220 million related to the bankruptcy reorganization of JCC Holding Company, which is approximately 43 percent owned by Harrah�s Entertainment.  The impact of the reserves on the full year and fourth quarter 2000 operating results was approximately $(1.21) per share and $(1.25) per share after tax, respectively.
• Reserves of approximately $39 million related to the bankruptcy reorganization of National Airlines, which is approximately 48 percent owned by Harrah�s Entertainment.  The impact of these reserves on Harrah�s Entertainment�s full year and fourth-quarter 2000 diluted earnings per share is (21) cents, after tax.

Excluding the reserves, project opening costs and nonrecurring items and the gains on equity interests, the company�s diluted earnings per share were $1.49 and $1.52 for full year 2000 and 1999, respectively, and 20 cents for fourth quarter 2000 compared with 29 cents for the fourth quarter of 1999.  Harsh winter weather late in the year and a much lower than normal hold percentage on table games at the Rio offset strong performance at Harrah�s brand casinos.

For the full year 2000, the company reported record revenues of $3.5 billion, up 15 percent over the prior year, and record Property EBITDA of $887 million, up 12 percent.  These results include the impact of the acquisition of Players International, Inc. since the March 22, 2000, date of acquisition.

�I am encouraged that our fundamental results continue to be strong, though I am disappointed by the impact of the reserves and other charges we recorded in 2000,� said Phil Satre, Chairman and Chief Executive Officer.  �I am especially pleased that we achieved record revenues and Property EBITDA, even before considering the operating results of the Players properties we acquired in March 2000.

�Virtually every Harrah�s-brand property reported record revenues for 2000, exemplifying the continued strength and success of our Total Rewards player-loyalty program for customers who consolidate their play at Harrah�s properties,� Satre said.  �Same-store gaming revenue at Harrah�s-brand properties grew 12 percent for the year, and same-store Property EBITDA grew 21 percent.�

In addition to achieving record revenue and Property EBITDA, significant accomplishments in 2000 included:

• Completion of the acquisition of Players International, Inc., and conversion of its St. Louis and Lake Charles properties to the Harrah�s brand.  Players Metropolis is expected to be converted by third quarter 2001.
• Extension of management agreements with the Ak-Chin tribe near Phoenix, Arizona, and Cherokee tribe in North Carolina.
• Receipt of several national awards honoring Harrah�s excellence in the area of information technology; including the 2000 Data Warehousing Award in recognition of the success of the Total Rewards loyalty program.  Shortly after year-end 2000, Harrah�s also received the prestigious CIO Magazine Enterprise Value Award recognizing its superior use of information technology in building customer relationships.
• Induction in June 2000 into the Gaming Hall of Fame in recognition of the company�s leading role in promoting responsible gaming.
• The successful launch of the Company�s new web site, www.harrahs.com, offering state-of-the-art technology and customer interaction.
• Harrah�s won more than 150 �Best Of� awards by the readers of Casino Player magazine, more than any other gaming company.

Full-year revenues in the Western Region, which is comprised of the company�s Nevada casinos, reached $1.1 billion, despite a low hold percentage at the Rio.

�Record revenues at our Harrah�s-brand properties in Nevada show the true success of Total Rewards in creating value for both our customers and our shareholders,� said Satre.  �Property enhancements at Reno and Lake Tahoe also helped propel our revenue, and both properties benefited from cross-market play.�

In the fourth quarter and full year, Western Region results were impacted by a low hold percentage on table games at the Rio.  Harrah�s estimates revenues were impacted by approximately $8 million in the fourth quarter 2000 and $52 million for the full year.  Property EBITDA at the Rio was impacted by the lower hold percentage, as well as increased expenses, particularly entertainment-related costs.

�We identified and addressed issues at the Rio, and we are implementing plans that we believe will lead to improved performance at the property for the year 2001,� Satre said.

Eastern Region Results
(in millions)
                       2000      1999    Percent     2000     1999   Percent
                      Fourth    Fourth   Increase    Full     Full   Increase
                     Quarter   Quarter  (Decrease)   Year     Year  (Decrease)
Harrah�s Atlantic
City
       Revenues        $97.7    $95.4     2.4%     $428.2    $405.8     5.5%
       Operating Profit 22.2     21.3     4.2%      113.0      96.8    16.7%
       EBITDA           28.0     27.4     2.2%      137.2     120.9    13.5%
Showboat Atlantic
City
       Revenues        $80.4    $85.5    -6.0%     $363.6    $369.8    -1.7%
       Operating Profit  9.9     13.6   -27.2%       69.3      77.0   -10.0%
       EBITDA           16.2     18.0   -10.0%       93.7      98.5    -4.9%
Total Eastern
Region
Revenues       $178.1   $180.9    -1.5%     $791.8    $775.6     2.1%
Operating
        Profit          32.1     34.9    -8.0%      182.3     173.8     4.9%
       EBITDA           44.2     45.4    -2.6%      230.9     219.4     5.2%

Harrah�s Atlantic City reported record revenues and Property EBITDA for both the fourth quarter and year 2000.  Continued execution of the company�s customer loyalty program produced strong growth for the Harrah�s property.  A 450-room, $110 million hotel tower addition is expected to open in the first quarter of 2002.

Harrah�s Showboat reported a decline in revenue and lower Property EBITDA for the fourth quarter and year 2000.  The integration of the Total Rewards system at Showboat Atlantic City was completed in 2000.  That integration, along with physical enhancements to the property anticipated to be completed by mid-year 2001, are expected to improve that property�s performance this year.

Central Region Results
(in millions)
                       2000      1999    Percent     2000    1999    Percent
                      Fourth    Fourth   Increase    Full    Full   Increase
                     Quarter   Quarter  (Decrease)   Year    Year  (Decrease)
Central Region
       Revenues       $373.3   $262.0    42.5%   $1,453.9  $1,020.1    42.5%
       Operating Profit 69.6     51.6    34.9%      304.8     201.8    51.0%
       EBITDA           90.3     65.2    38.5%      383.3     254.6    50.5%

The Central Region�s 2000 results benefited from record revenues and Property EBITDA at most Harrah�s-brand properties, and the addition of the Players facilities in Maryland Heights, Mo., Metropolis, Ill., and Lake Charles, La., acquired on March 22, 2000.

�Harrah�s Chicagoland properties continue to show strength, reporting a 40 percent gain in Property EBITDA, with Joliet benefiting from its first full year of both dockside gaming and the luxury hotel that we opened there in November 1999,� said Satre.  �Harrah�s East Chicago also will benefit in 2002 from a new 292-room, $45 million hotel expected to be completed by this year�s end.�

�In Missouri, our properties� operating results grew as a result of the positive impact of Total Rewards and consolidation of the Players facility with our own in St. Louis.  Combined revenues from the Missouri properties rose 34%, and combined Property EBITDA was up 42% percent from the prior year.

�In Shreveport, Louisiana, Property EBITDA was down 15% from the prior year, impacted by construction underway on a $150 million hotel and shore-side amenities project,� Satre said.  �That project is expected to be completed by the end of the first quarter 2001.�

Agreements Extended on Two Managed Properties

The three Indian-owned casinos managed by Harrah�s, which also share the company�s Total Rewards marketing capabilities, reported a strong 2000.  Two of those casinos completed extensions of their management contracts with Harrah�s in 2000.  The Rincon Band of Luiseno Indians north of San Diego opened a temporary casino soon after year-end; Harrah�s will manage the tribe�s permanent facility that is expected to open in the first half of 2002.

Other Items

The increase in project opening costs relates to the expansion of Harrah�s Shreveport and to preparations for the re-branding and integration of Total Rewards into the Players properties.

Interest expense was higher than in the previous year, due to higher debt levels associated with the Players acquisition and the company�s stock repurchase program.  The company repurchased 12.4 million shares during 2000 at an average price of $22.39 per share.

Last year, the company reported a gain on a sale of equity investments in two companies, whereas this year Harrah�s reported a loss associated with its investment in National Airlines.

Other income was below prior year for both the fourth quarter and full year due to mark-to-market adjustments recorded in the fourth quarter 2000 for company-owned life insurance policies.

The effective tax rate in 2000 was higher than in the prior year due to the impact of the reserves recorded for Harrah�s New Orleans and National Airlines, and additional non-deductible amortization of goodwill.

Founded more than 60 years ago, Harrah�s Entertainment, Inc. is the most recognized and respected name in the casino entertainment industry operating 21 casinos in the United States under the Harrah�s, Showboat and Rio brand names. 

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.