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HARRAH'S AND NEW ORLEANS LOUISIANA DEVELOPMENT CORPORATION JOIN FOR LOUISIANA CASINO PROPOSAL OFFERS STATE $100 MILLION FOR EXCLUSIVE LAND-BASED CASINO RIGHTS

 NEW ORLEANS, June 4 /PRNewswire/ -- Harrah's, the casino entertainment division of The Promus Companies Incorporated (NYSE: PRI), and New Orleans Louisiana Development Corporation today announced they have submitted a joint proposal for the state license to operate the State of Louisiana's only land-based casino entertainment complex to be located in New Orleans.
 If the Harrah's/New Orleans Louisiana Development Corporation proposal is selected by the state agency, a joint venture called Harrah's Jazz Company will develop, own and operate the proposed Harrah's Jazz Casino. Harrah's will manage the facility under a management contract and have a significant equity ownership in the project.
 If selected, Harrah's Jazz Company has offered to pay the state $100 million for the exclusive land-based casino rights in the state upon opening of the first phase of the casino, targeted for April 1994.
 New Orleans Louisiana Development Corporation is owned by ten businessmen and attorneys, all residents of Louisiana.
 Based in Memphis, Tenn., Harrah's is the only casino company operating in all five major Nevada and New Jersey casino markets -- Atlantic City, N.J., Lake Tahoe, Laughlin, Las Vegas and Reno, Nev. Harrah's first riverboat casino opened in May 1993 in Joliet, Ill. Additional casino entertainment projects in Vicksburg and Tunica, Miss., North Kansas City, Mo., Shreveport, La., and Central City, Colo., reinforce Harrah's commitment to be the country's most recognized and only true national casino brand.
 "We are thrilled to be associated with the most-respected name in casino gaming," said Wendell Gauthier, president of New Orleans Louisiana Development Corporation. "Harrah's longtime reputation for integrity, quality service to guests, marketing expertise and its exceptional financial strength means this will be the strongest, most- attractive proposal to the State of Louisiana. This is a match made in heaven and delivered to Louisiana."
 Michael D. Rose, chairman and chief executive officer for Promus, said, "New Orleans Louisiana Development Corporation's unique position as a group of highly-accomplished Louisiana businessmen who care about their state's economic future, together with Harrah's strength in developing and operating highly-successful casino entertainment facilities, makes for a strong bid for the state license.
 "Harrah's participation in this proposal process underscores our strategy to be the first national casino brand," Rose added. "With Louisiana's and New Orleans' reputations as world-class tourist destinations, this presents an ideal opportunity to expand Harrah's brand name."
 RENOVATION OF RIVERGATE EXPEDITES BENEFITS TO CITY AND STATE
 THREE PHASE OPENING PLANNED
 As described in its formal submission to the state, Harrah's Jazz Casino, if selected, will renovate the existing Rivergate Convention Site in New Orleans at a total expected construction cost of $168.2 million. Construction and opening of Harrah's Jazz Casino will be on a phased schedule. A 40,000 square foot Phase I temporary casino at the Rivergate site will be open by April 1994, if all approvals and leases are finalized by November 30, 1993.
 A second phase of an additional 40,000 square feet of casino space will be open by December 1, 1994 and the final phase, bringing the total casino size to 120,000 square feet, will open in March 1995.
 "The key advantage to our bid, in addition to bringing the Harrah's brand and impeccable reputation to New Orleans, is our plan to refurbish the Rivergate Center. This will create new jobs, new tax revenues and new tourism with almost no disruption in the downtown business district which will occur for a two-year period if new construction is pursued," said Rose. "This expedited development schedule, plus the $100 million payment to the state and a $30 million up-front payment to the city show a strong commitment by the joint venture to New Orleans and Louisiana to make this project a success."
 When fully operational, the 120,000 square foot casino will feature 200 table games and 4,800 slot machines. Harrah's conservatively estimates a casino of this size, drawing approximately 5.6 million casino visitors annually, will gross approximately $600 million in annual gaming revenue, making it the highest revenue generating casino in the world and generating state gaming taxes of $4.4 billion over the next 30 years.
 If demand warrants, Harrah's Jazz Casino is prepared to expand the facility, within the current Rivergate structure, to 200,000 square feet of casino space in a very short time frame.
 AGGRESSIVE MARKETING AND HUMAN RESOURCES COMMITMENTS
 Harrah's Jazz Casino will employ more than 4,000 people with a total payroll and benefits impact of more than $105 million each year. The company has pledged to hire 80 percent Louisiana residents.
 "As detailed in the proposal, we are committed to make this casino a financial and tourism success for the city and the state," Rose commented. "In addition to the current marketing benefits of the Harrah's brand name and systems, Harrah's Jazz Casino will work with the state and city, and has proposed spending in excess of $100 million to market the casino during the first year alone."
 In addition to the casino, Harrah's Jazz Casino will feature one 250-seat food court. Harrah's Jazz Casino expects the remainder of the casino patrons to dine in New Orleans' world-famous restaurants -- many within walking distance of the casino. Parking for 1,300 cars will be constructed at the site, 815 of which will be completed for the Phase I opening.
 If selected by the state, the project is subject to other governmental and regulatory approvals and completion of definitive agreements, including an agreement with the city of New Orleans.
 Harrah's parent company, Promus, also owns and operates three leading hotel brands: Embassy Suites, Hampton Inn and Homewood Suites hotels.
 -0- 6/4/93 R
 /CONTACT: Bob Dowd of Harrah's Casino Hotels, 901-762-8790, or Ralph Berry of The Promus Companies, 901-762-8629/
 (PRI)


CO: Harrah's Casino Hotels; The Promus Companies Incorporated;
 New Orleans Louisiana Development Corporation ST: Louisiana, Tennessee IN: CNO SU:


CM -- CH005 -- 5808 06/07/93 08:22 EDT
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Publication:PR Newswire
Date:Jun 7, 1993
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