``We are very pleased this casino project is now once again moving forward,'' stated Philip Satre, chairman, president and chief executive officer of Harrah's Entertainment, Inc. ``It has been a long and challenging three years putting this project back together. We would not have persevered if we did not feel it was in the best interest of our shareholders, our corporate strategy and the Harrah's brand. This is now a project with the potential to make the vision of a world class casino in the heart of New Orleans' international tourist playground a reality.'' 

Harrah's New Orleans will feature 100,000 square feet of casino excitement, providing 2,840 slot machines and 114 table games in five distinct themes and environments -- The Jazz Court, Mardi Gras Court, Court of the Mansion, Court of Good Fortune and Smuggler's Court. A 100,000 square foot second floor will feature yet to be determined non-casino space. The newly constructed architecturally unique casino is at the foot of Canal Street in the heart of the New Orleans tourism and convention business district within easy access to hotels, restaurants and other entertainment venues. 

Total expenditures anticipated to complete the project from this day forward are estimated at approximately $213 million. Harrah's Entertainment's equity interest in the newly reorganized company will be $75 million in cash, $60 million of which has been funded to date through debtor-in-possession loans and, in addition, Harrah's Entertainment will guarantee $141.5 million of debt. 

Also, Harrah's Entertainment will guarantee a standby working capital loan of $25 million and provide a $22.5 million subordinated loan to the project. Harrah's Entertainment will have a further guarantee of the $100 million annual payment to the state for the first 365 days of operations. The guarantee to the state renews year by year for each fiscal year ending March 31 until March 31, 2004, subject to certain renewal conditions. This $100 million is effectively reduced by 1/365th with each daily payment to the state during each year, and therefore the potential liability is reduced with each daily payment. 

Other funding necessary to complete the project is primarily provided by banks and underwriters and is not guaranteed by Harrah's Entertainment. The plan also includes full releases of litigation claims by the parties involved in the project. The former bondholders for the project, whose $435 million in bonds have been exchanged for 52% in equity in JCC Holding Company plus $187.5 million in debt, hold majority ownership in the project. 

Harrah's Entertainment will receive a base management fee of 3% of revenues and an incentive management fee of 7% of EBITDA in excess of $75 million, in addition to fees for providing the $100 million guarantee and credit support for the bank facility and any benefits associated with its equity investment. 

``We now begin a new day for the Harrah's New Orleans Casino. Harrah's Entertainment has confidence that Harrah's New Orleans Casino will be a success for many reasons,'' Satre stated. 

Satre outlined the following favorable developments that will enhance the performance and prospects for the new casino: 

New Building in a Great Location: ``The temporary casino that closed three years ago was in a remodeled municipal auditorium outside of the tourist district. The new casino is purposely built as a casino in an entirely different and more attractive location in the heart of the tourism district bounded by the French Quarter, the convention center and riverfront attractions.'' 

New Marketing Tools: ``As a company, Harrah's Entertainment has better customer relationship tools and systems, especially our patented Total Gold player rewards and recognition program, and even greater geographic distribution, than we had a few years ago. By the time Harrah's New Orleans opens, our active customer database will be twice as big as it was a few years ago. It will include data on more loyal customers whom we feel will want to experience a first-class casino in the heart of a world-class entertainment city that continues to experience increased visitation and additional hotel venues.'' 

New Customers: ``Harrah's Entertainment has grown in our understanding of the value of cross-market customers and the role they play in the industry overall. Pending the completion of a merger with Rio, Harrah's Entertainment's unique national database will include the customer information from three strong casino brands, Harrah's Showboat and Rio. Harrah's Entertainment is better positioned than any other company to use its customer relationships to make the New Orleans casino the kind of success it is capable of being. In addition, Harrah's Entertainment believes the customer relationships it builds at the New Orleans casino will be beneficial to the 19 other Harrah's Entertainment operations throughout the United States.'' 
 
New Attitude: ``The business climate and relationships with New Orleans city leaders and local business owners are stronger as we join together to bring tourism back from the Mississippi Gulf casinos. The plans for the casino itself are also more exciting. We have used the delay to make sure the facility, at the foot of Canal Street and within walking distance of 14,000 hotel rooms and hundreds of great restaurants, is as spectacular in design and experience as it is in location.'' 

New Management Team: ``Harrah's has assembled a first-class management team, operating under the management contract, that will be led by Jay D. Sevigny as president and chief operating officer. The team that Jay has assembled to operate the new casino on behalf of JCC has experience in opening and operating successful casinos that are high in theme and excitement, both in traditional markets and in new markets like New Orleans.'' 

Harrah's Entertainment is the most recognized and respected name in the casino entertainment industry. Founded more than 60 years ago, Harrah's Entertainment is focused on building loyalty with its targeted customers through a unique combination of great service, excellent products, unsurpassed distribution, operational excellence and technology leadership.