The project, which is subject to regulatory approvals, will boost the capacity at Showboat to 1,230 rooms and suites. The expansion is expected to be completed in the third quarter of 2003.

�With the Showboat operating at 99 percent occupancy for much of the year, we need this expansion to better accommodate demand from our guests,� said Tim Wilmott, Harrah�s Entertainment�s Eastern Division President. �It is also another expression of our confidence in the future of Atlantic City.

�Our company is also spending more than $190 million to expand Harrah�s Atlantic City, adding 450 hotel rooms and suites and 50,000 square feet of casino space to that facility,� Wilmott said.

The Harrah�s Atlantic City expansion will boost that property�s room count to 1,624 and its casino space to 144,622 square feet. Combined with the Showboat, the company will have nearly 246,000 square feet of casino space in Atlantic City.

�Earlier this year, we completed $34 million in upgrades to the Showboat, including construction of two new restaurants that opened last week and a reconfiguration of the casino floor,� said Tom O�Donnell, Showboat General Manager. �The addition of the hotel tower will further enhance the guest experience for our customers.�

Founded more than 60 years ago, Harrah�s Entertainment, Inc. is the most recognized and respected name in the casino-entertainment industry, operating 25 casinos in the United States, primarily under the Harrah�s brand name. With a combined database of more than 24 million players, Harrah�s Entertainment is focused on building loyalty and value with its target customers through a unique combination of great service, excellent products, unsurpassed distribution, operational excellence and technology leadership.

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.