Continuing efforts to provide assistance to those hardest hit by Hurricanes
Katrina and Rita, the Harrah’s Employee Recovery Fund (HERF) recently issued
$2.1 million in assistance to nearly 2,800 current and former employees of
Harrah’s Entertainment, Inc. and its subsidiaries. The distribution is the
second made by the HERF, which previously paid $4.5 million to 3,600
employees. Any non-management employee impacted by the two hurricanes was
eligible to apply for financial assistance from HERF; decisions were made
according to need. “The remarkable generosity shown by our employees,
customers, business partners and friends in the community was truly
inspiring,” said Gary Loveman, chairman, chief executive officer and
president of Harrah’s Entertainment. “Their donations and efforts have
helped thousands of our colleagues start down the path of recovery. We will
not soon forget the kindness so many showed in our employees’ hour of need.”

Shortly after Hurricane Katrina made landfall, the Harrah’s Foundation
seeded the HERF with a contribution of $1 million, which was later raised to
$1.5 million. Additional contributions were made by thousands of donors in
the months that followed, capped by $2.1 million raised in a February 2006
benefit concert by Celine Dion, Elton John and Jerry Seinfeld at Caesars
Palace.

The fund was just one facet of the company’s comprehensive relief efforts
for the nearly 9,000 employees who worked at four Harrah’s properties closed
by the storms. The company guaranteed employees’ pay for 90 days, continued
health insurance benefits, opened employee information and recovery centers
in Mississippi and Louisiana, gave affected employees first preference for
available jobs at the company’s other casinos across the United States, and
provided nearly $1.5 million in assistance to employees relocating to other
properties.

Nine months after Katrina, Harrah’s efforts to return to the Gulf Coast are
well underway. In February Harrah’s New Orleans re-opened its doors, and
later this summer the company will open the first phase of a completely
refurbished Grand Casino Biloxi. Harrah’s expects to announce plans for the
development of a destination resort in Biloxi later this summer.

“We are committed to the Gulf Coast, and look forward to expanding our
presence in New Orleans and Biloxi in the years to come,” Loveman said.