Park Place Resorts Promote Water Conservation to Battle Record Drought.

Business Editors

LAS VEGAS--(BUSINESS WIRE)--Aug. 5, 2003

In response to the region's record drought, the five Las Vegas resorts owned by Park Place Entertainment Corporation (NYSE: PPE) are working closely with the Southern Nevada Water Authority to significantly reduce their overall water consumption.

The company's water conservation efforts, designed and implemented in consultation with the SNWA, build on Park Place's existing "Green Room" conservation program to incrementally reduce water usage throughout the resorts. New measures include more carefully managed watering of outdoor landscaping as well as installation of water conserving hardware in guest rooms and other resort facilities.

"Park Place has a strong commitment to environmental responsibility and the Southern Nevada community," said Anthony F. Santo, senior vice president of the company's Western and Mid-South regions. "These additional conservation measures will help further reduce our community's water consumption without seriously impacting the world-class resort experience we provide to our guests."

The Park Place properties implementing the new water conservation measures are: Bally's Las Vegas, Caesars Palace, Flamingo Las Vegas, Paris Las Vegas and the Las Vegas Hilton. In addition, Cascata, the company's golf course in Boulder City reserved for resort guests, also has increased its conservation efforts in response to the drought.

About six percent of Park Place resort properties in Las Vegas is landscaped with trees or turf, a significantly lower percentage than found in residential developments. The properties range from 24 acres to 87 acres. Park Place is reducing water consumption in these outdoor areas with a variety of programs.

They include reduced off-hour watering of all vegetation and the use of irrigation drip systems instead of sprinkler systems. Both the Flamingo Las Vegas and Caesars Palace use a state-of-the-art computer weather station that calculates the rate of water evaporation in landscaped areas and then automatically sets irrigation systems to replace only that which has been lost. This system eliminates any chance of over-watering the turf and trees at the resorts. The Las Vegas Hilton is currently converting several areas from natural landscaping to xeriscape - an artificial 'desert landscape' designed for aesthetic appeal and reduced water requirements.

Indoor water usage also has been reduced. The majority of Park Place guestrooms now are equipped with water saving toilets, faucets and showerheads. The new Bricor shower and sink fixtures scheduled for installation at Paris Las Vegas will conserve an estimated 22 million gallons of water annually. "Green Room" programs throughout the Park Place family of resorts ensure that sheets and towels are changed upon guest request only, thereby reducing the use of electricity and water consumption in resort laundries.

Kitchens throughout Park Place Entertainment have had water restrictors installed in faucets, and restaurants on Park Place properties now offer drinking water on an if-requested basis only, reducing not only the water consumed, but the water required to wash unused drinking glasses. Park Place Entertainment also is committed to fully comply with SNWA guidelines on ornamental water feature operation and comfort misting systems when the agency declares a formal "Drought Alert" or "Drought Emergency."

During the summer months, air conditioning consumes a significant amount of water and electricity in Las Vegas. In large resorts, large water cooled fans are used to produce comfortable indoor temperatures. To help eliminate overflow of water in these cooling towers, several resorts have installed water equalizing lines which conserve each Park Place resort approximately 300,000 gallons of water annually.

At the Cascata golf course, the Park Place management team, working in conjunction with the Boulder City municipal government, has voluntarily undertaken steps to dramatically reduce water usage. Increased aeration of fairways, greens and other turf areas, in addition to the use of wetting agents, has improved the ability of the golf course turf to hold moisture and reduced water demand. The course has also made a seasonal transition from rye grass to a more hardy variety of Bermuda grass, which requires less water.

As a result, the course has been able to convert to a six-day-a-week watering schedule that will conserve an estimated 60 million gallons of water per year. In addition, water features such as pools, fountains and waterfalls have been redesigned, improving their efficiency by more than 80 percent. Cascata also has begun using raw lake water from Lake Mead for its irrigation needs, reducing demands on the Boulder City water supply.

Park Place also is implementing an internal communications program to educate and inform its 15,000 Las Vegas employees about the value and necessity of responsible water usage in their homes, as well as in the workplace.

With the assistance of the SNWA, the company is putting in place a program to display and distribute Water Smart brochures, newsletters, tent cards and posters to thousands of Park Place employees.

About Park Place

Park Place Entertainment Corporation (NYSE: PPE) is one of the world's leading gaming companies. Park Place owns, manages or has an interest in 29 gaming properties operating under the Caesars, Bally's, Flamingo, Grand Casinos, Hilton and Paris brand names with a total of approximately two million square feet of gaming space, 29,000 hotel rooms and 54,000 employees worldwide. The company has announced plans to change its name to Caesars Entertainment, Inc., effective in January 2004, pending shareholder and regulatory approval.

Additional information on Park Place Entertainment can be accessed through the company's web site at www.parkplace.com.

NOTE: This press release contains "forward-looking statements" within the meaning of the federal securities law, which are intended to qualify for the safe harbor from liability provided there under. All statements which are not historical statements of fact are "forward-looking statements" for purposes of these provisions and are subject to numerous risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. Forward-looking statements include all financial projections, including projections of revenue, market share, earnings, EBITDA, free cash flow, statements of management's plans, objectives or expectations of future economic performance, statements regarding new developments or opportunities, statements of belief, and/or statements regarding anticipated construction, development, or acquisition. Additional information concerning potential risk factors that could affect the company's future performance are described from time to time in the company's reports filed with the Securities and Exchange Commission, including the company's Annual Report on Form 10-K for the year ended December 31, 2002 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2003. The reports may be viewed free of charge at the following website: www.sec.gov. The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise.