When the merger becomes effective, Harveys shareholders will be entitled to receive $28 in cash for each share of Harveys common stock and Harveys will become a privately held company and affiliate of Colony Capital, Inc. Consummation of the merger is subject to the receipt of all necessary regulatory approvals, including the approvals of Nevada, Colorado and Iowa gaming authorities. The Company anticipates that the merger will be completed in the latter part of 1998.

At the meeting, shareholders also elected three directors as members of the Company's board of directors. Each elected director will serve for a term of the earlier of (i) the consummation of the merger or (ii) 3 years or until their respective successors are duly elected and qualified. The newly elected directors are as follows:

Richard Kudrna, chairman emeritus, Harveys Casino Resorts; Kudrna has been with Harveys since 1968. He served as chairman of the board from 1983 until 1995 when he was appointed chairman emeritus. Kudrna currently sits on the Advisory Board for the University of Nevada-Reno Business College and is active in several service organizations.

Jessica Ledbetter, director, Harveys Casino Resorts; a Harveys director since 1987, Ms. Ledbetter also serves on the board of directors of Barton Memorial Hospital in Lake Tahoe, Lake Tahoe Community Trust and the Lake Tahoe Education Foundation.

Franklin Rahbeck, director, Harveys Casino Resorts; Mr. Rahbeck has been a Harveys director since 1985 and is also a member of the board of directors for the Washoe Tribe's Economic Development Corporation and has served as a director for Barton Memorial Hospital Foundation and First Interstate Bank of Nevada.

Colony Capital is a private, international real estate-related investment firm headquartered in Los Angeles with additional offices in New York, Texas, Florida, Hawaii and Paris, France.

Founded in 1944, Harveys Casino Resorts wholly owns and operates Harveys Resort Hotel/Casino in Lake Tahoe, Nev.; Harveys Wagon Wheel Hotel/Casino in Central City, Colo.; and Harveys Casino Hotel in Council Bluffs, Iowa.

The statements contained in this press release that are not historical facts are forward-looking statements that are based on management's assumptions regarding consummation of the merger and receipt of necessary approvals. The Company cautions that certain factors, including regulatory delays, could cause actual results to differ materially from those in the forward-looking statements.