Earnings before interest, taxes, depreciation and amortization (�EBITDA�) were $315 million in the first quarter of 2001, compared to last year�s $327 million. 
The Caesars portfolio of properties continued its strong performance as combined EBITDA for the Caesars portfolio increased 5% to $102 million vs. $97 million in the quarter ended March 31, 2000, and combined EBITDA margins increased by 1% to 28% in the first quarter of 2001 vs. 27% last year. The results were primarily due to the successful integration programs that continue to drive incremental property utilization. 

�We are very pleased with our first-quarter results,� said Tom Gallagher, president and CEO. �We continue to produce a significant amount of excess cash flow which we utilize to pay down debt, invest in ROI-driven projects and repurchase shares. This cash-flow allocation allows us to grow our company and continue to take market share in the three major gaming markets while shrinking the right side of the balance sheet.� 

Highlights from the quarter include:

• Generating $133 million of excess cash flow;
• Paying down $78 million in debt;
• Investing $43 million in new unit projects;
• Repurchasing 1.1 million shares at an average price of $10.45;
• Caesars Indiana posting a 36% increase in EBITDA;
• Paris/Bally�s Las Vegas posting an increase in EBITDA over last year;
• Las Vegas Hilton generating $16 million in EBITDA;
• Mississippi Gulf Coast market firming up with flat year-over-year results; and 
• Atlantic City properties achieving premium same-store revenue increases. 

Mid-South Region 

Revenues at Caesars Indiana improved 17% in the first quarter, while EBITDA improved 36% quarter-over-quarter to $15 million. The property also increased its market share from 22.8% in the first quarter of 2000 to 23.5% in the first quarter of 2001, even with a new property opening in the market in October 2000. The improvement resulted primarily from a 19% increase in slot handle and a 9% increase in table drop. 

The increase in play was driven substantially by the recent completion of the Pavilion at Caesars Indiana, which features restaurants, retail shops, an entertainment venue and a conference center, providing the ability to further penetrate the Louisville, Ky., market. A 500-room hotel tower is under construction and should be completed in the third quarter of this year. 

The Mississippi gulf coast market continues to firm as first-quarter results were flat with last year. Grand Biloxi and Grand Gulfport reported EBITDA of $16 million and $12 million, respectively. This quarter marks the first time the gulf properties have not experienced quarter-over-quarter declines since the fourth quarter of 1999. 

Additionally, the company is building an 1,100-space parking garage adjacent to Grand Biloxi. The garage will be completed by mid-summer and will provide customers with direct access to the casino. 

Although down from last year�s $14 million, Grand Tunica showed sequential improvement as it reported $13 million in EBITDA for the first-quarter 2001. 

Eastern Region 

In the Eastern region, the company�s Atlantic City properties led the market with average same-store gross gaming revenue growth of 1.3% compared to a slight decline for the rest of the market as Park Place properties continue to gain market share.

Overall EBITDA for the Eastern Region for the first quarter of 2001 was slightly lower than the first quarter of 2000 primarily due to inclement weather and the threat of bad weather in February and March 2001. 

Caesars Atlantic City revenues were up 4% while EBITDA grew 6% from $31 million in the first quarter of 2000 to $33 million in 2001.

The strength at Caesars was primarily attributable to an increase in slot handle and cost-reduction synergies, partially offset by adverse weather conditions. 
Revenues were up 1.5% at Bally�s Atlantic City, and EBITDA was $35 million for the first quarter of 2001 vs. $38 million reported for the first quarter of 2000. The decline in EBITDA at the property was primarily due to abnormally low gaming volumes on days with inclement weather and increasing energy costs, partially offset by increased revenues generated from the Coyote Kate�s slot parlor expansion at the Wild Wild West casino. 

The Atlantic City Hilton posted a 1% gain in revenues and EBITDA was $12 million for the first quarter of 2001 vs. $14 million in the year-ago quarter. The property�s lower results were partially attributable to slightly lower table win coupled with increased energy expenses and inclement weather. 

Western Region 

In the Western region, the company drove a 4% increase in slot handle and a 5% increase in table drop as well as a 7% increase in room revenue at the �four corners.� These increases were partially attributable to the company�s strong group meeting business division, but were somewhat offset by a decrease in hold percentage and increasing energy costs for the first quarter of this year vs. last year. 

Paris/Bally�s Las Vegas reported EBITDA of $59 million for the first quarter of 2001 vs. $58 million for the first quarter of 2000. Paris/Bally�s Las Vegas rebounded with this $1 million year-over-year increase in EBITDA by driving incremental casino and hotel revenues. 

Caesars Palace generated EBITDA of $31 million, down from last year�s $35 million. The decline in EBITDA was primarily due to this year�s unfavorable calendar. Caesars Palace generated $7 million less in EBITDA on Jan. 1 and 2 this year versus last year primarily due to the New Year�s Eve weekend effect. Also in 2001, Chinese New Year and the Super Bowl fell on the same weekend in January rather than on separate weekends which, given Caesars Palace�s full utilization levels, restrained the property�s ability to meet customer demand. 

EBITDA at the Las Vegas Hilton was $16 million in the first quarter of 2001 vs. $18 million last year. The first-quarter results indicate that the Las Vegas Hilton is back on track and management is successfully repositioning the property as a convention hotel focusing primarily on the slot customer and certain select high-end players. 

The Flamingo Las Vegas reported EBITDA of $29 million in the first quarter of 2001 compared to $33 million last year. The decline was primarily attributable to higher operating costs, while casino revenues remained relatively flat. 

�In the face of a difficult economic environment, our Western Region results continued to display resilience to an economic downturn,� said LaPorta. �We posted an 8.5% increase in RevPar in Las Vegas, and our Northern Nevada and Laughlin properties posted a 4% increase in revenues and a 13% increase in EBITDA. We believe that Nevada will continue to be a strong performer based on our current advance bookings and the diversity of our properties� market segments.� 

International 

On a combined basis, first-quarter 2001 EBITDA from the company�s non-U.S. properties decreased from $31 million to $26 million this year. The decline was primarily due to a decrease in hold percentage at the Conrad properties in Australia as well as weaker foreign currencies in Australia, Canada and South Africa. 

Corporate Items

In the first quarter, Park Place Entertainment generated $133 million in excess cash flow. The company paid down $78 million in bank debt, invested $43 million in ROI-driven projects and repurchased $12 million in stock (1.1 million shares at an average price of $10.45).

The company also implemented cross-charging capabilities at its properties on the �four corners.� The program should stimulate incremental customer cross visitation between the properties. In addition, the company launched its in-room technology platform at Paris Las Vegas, which is designed to further enhance cross-marketing efforts throughout the company portfolio. The product has
experienced a high utilization rate by hotel guests, and the company plans to expand the testing of the product throughout the �four corners.� 

Park Place also attracted new high-end customers to its Las Vegas properties in the first quarter, driven partly by the company�s new exclusive golf course for premium players, Cascata. Customer response has confirmed the perception that Cascata has become the golf destination of choice in Las Vegas. The company believes that this new golf course, together with the previously
announced new Caesars room tower and the 4,000-seat Colosseum showroom at Caesars Palace, will drive significant incremental revenues and EBITDA over the next several years. 

In January, the New Jersey Casino Control Commission approved the company�s proposed acquisition of the Claridge Casino Hotel in Atlantic City. The confirmation hearing is scheduled for May 16, 2001, and the company hopes to close the Claridge acquisition shortly thereafter. 

Also in the quarter, the company announced that the Saint Regis Mohawk Tribe filed an application with the Bureau of Indian Affairs for approval of the acceptance of land into trust for the development of a $500 million Las Vegas-style resort and casino approximately 90 minutes north of New York City in Sullivan County. Park Place will develop and manage the casino once the Tribal application is approved and a compact for gaming in Sullivan County is successfully completed with the state of New York. 

Park Place Entertainment is the world�s largest gaming company and owns, manages or has an interest in 28 gaming properties operating under the Caesars, Bally�s, Paris, Flamingo, Grand and Hilton brand names with a total of 2 million square feet of gaming space, more than 28,000 hotel rooms and approximately 57,000 employees worldwide. 

This news release contains �forward-looking statements,� intended to qualify for the safe harbor from liability under the Private Securities Litigation Reform Act of 1995. All statements that 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.