Correction: Harrah's Entertainment Announces Plan to Sell Harveys Wagon Wheel in Colorado.

Business Editors

LAS VEGAS--(BUSINESS WIRE)--Oct. 3, 2002

Harrah's Entertainment Inc. (NYSE:HET) is negotiating to sell Harveys Wagon Wheel Hotel & Casino in Central City, Colo., to Centaur Colorado, LLC, a wholly owned subsidiary of Centaur Gaming Inc. of Indianapolis.

In a release erroneously issued earlier today, Harrah's said an agreement had been signed.

If a definitive agreement is reached, the transaction will be subject to customary regulatory approvals, and is expected to close by the third quarter of 2003. The projected sale price was not disclosed.

Harrah's Entertainment acquired Wagon Wheel in July 2001 as part of its acquisition of Harveys Casino Resorts. Located 40 miles west of Denver, the property has 118 hotel rooms, 1,055 slot machines and 22 table games.

"The acquisition of Harveys Casino Resorts has been a successful one by any measure," said Phil Satre, chairman and chief executive of Harrah's Entertainment. "As we indicated we would do when we acquired Harveys, we have evaluated the Wagon Wheel and concluded it is a non-strategic asset for us."

Centaur Colorado will have the right to use the Harveys brand at Wagon Wheel for 120 days after the transaction closes. Harrah's Entertainment will not make any significant changes in the property's operations while the transaction is pending.

Founded 65 years ago, Harrah's Entertainment Inc. operates 26 casinos in the United States, primarily under the Harrah's brand name. 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.

Additional information about Harrah's Entertainment is available 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. You can identify these statements by the fact that they do not relate strictly to historical or current facts. These statements contains words such as "may," "will," "project," "might," "expect," "believe," "anticipate," "intend," "could," "would," "estimate," "continue" or "pursue," or the negative or other variations thereof or comparable terminology. In particular, they include statements relating to, among other things, future actions, new projects, strategies, future performance, the outcome of contingencies such as legal proceedings and future financial results. We have based these forward-looking statements on our current expectations and projections about future events.

We caution the reader that forward-looking statements involve risks and uncertainties that cannot be predicted or quantified and, consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to, the following factors as well as other factors described from time to time in our reports filed with the Securities and Exchange Commission:

-- the effect of economic, credit and capital market conditions on the economy in general, and on gaming and hotel companies in particular;

-- construction factors, including delays, zoning issues, environmental restrictions, soil and water conditions, weather and other hazards, site access matters and building permit issues;

-- our ability to timely and cost effectively integrate into our operations the companies that we acquire;

-- access to available and feasible financing;

-- changes in laws (including increased tax rates), regulations or accounting standards, third-party relations and approvals, and decisions of courts, regulators and governmental bodies;

-- litigation outcomes and judicial actions, including gaming legislative action, referenda and taxation;

-- ability of our customer-tracking and yield-management programs to continue to increase customer loyalty;

-- our ability to recoup costs of capital investments through higher revenues;

-- acts of war or terrorist incidents;

-- abnormal gaming holds, and

-- the effects of competition, including locations of competitors and operating and market competition.

Any forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995 and, as such, speak only as of the date made. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.