LAS VEGAS & NORTH LIBERTY, Iowa June 5, 2007 - Harrah�s Operating Company, a wholly-owned subsidiary of Harrah�s Entertainment, Inc (NYSE:HET) today announced it is moving forward with Kinseth Hospitality Group to develop a nationally branded, upscale, select service hotel at Horseshoe Council Bluffs Casino. Kinseth will develop, own, and operate the hotel. 

�The new hotel at Horseshoe Council Bluffs will be a much-needed addition to the entertainment experience we currently offer,� said Michael Silberling, regional president for Harrah�s operations in Missouri and Iowa. �With approximately 158 new rooms, our guests will find it easier to enjoy their visit to Horseshoe. Kinseth Hospitality Group, with its unsurpassed expertise in this niche, is the ideal company to develop this project.� 

�An upscale, select service product is the ideal addition to the current first class Harrah�s Entertainment offering at Horseshoe Council Bluffs,� said Bruce Kinseth, executive vice president of Kinseth Hospitality. �The brand to be announced soon will be a well recognized, best in class brand hotel and we are excited to bring this to the city of Council Bluffs and Horseshoe.� 

New Hotel at Horseshoe Council Bluffs features 

The new hotel at Horseshoe Council Bluffs will be developed adjacent to the casino, located at 2701 23rd Avenue, in Council Bluffs, Iowa. With a projected development start date of summer 2007, the five story hotel at Horseshoe Council Bluffs is projected to be completed in the spring of 2008 and features will include: 

� Approximately 3,000 square feet meeting space; 
� Fitness facility; 
� Indoor pool; and 
� 158 new luxury rooms and suites. 

About Kinseth Hospitality Group 
KHC is a hospitality management company and ownership organization based in North Liberty, Iowa, with a proven track record of developing and operating award-winning hotels, restaurants and meeting facilities. A leader in the hospitality field, KHC now owns and/or operates 36 hotels and fourteen chain-affiliated restaurants in eight states. Their extensive background, coupled with a seasoned executive team, fosters a culture that is oriented towards success. KHC�s ongoing mission is to build value for their guests, associates and investors. For more information regarding KHC, please visit www.kinseth.com 

About Harrah�s Entertainment 
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. 

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.