Harrah's Announces Adjustment of Conversion Price for Floating Rate Contingent Convertible Senior Notes Due 2024

LAS VEGAS, Aug. 10 /PRNewswire-FirstCall/ -- Harrah's Operating Company, Inc., a subsidiary of Harrah's Entertainment, Inc. , announced that the conversion price under its outstanding $375 million Floating Rate Contingent Convertible Senior Notes due 2024 has been adjusted to $65.54 from $65.85, subject to further adjustment as provided for in the governing indenture. The adjustment has been made pursuant to the terms of the indenture as a result of the cash dividend of $0.40 per share of Harrah's Entertainment common stock that was declared on July 19, 2007, and which will be payable August 22, 2007 to Harrah's Entertainment stockholders of record as of the close of business on August 8, 2007.

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Harrah's Entertainment, Inc. is the world's largest provider of branded casino entertainment through operating subsidiaries. Since its beginning in Reno, Nevada nearly 70 years ago, Harrah's has grown through development of new properties, expansions and acquisitions, and now owns or manages casinos on four continents. The company's properties operate primarily under the Harrah's, Caesars and Horseshoe brand names; Harrah's also owns the London Clubs International family of casinos. Harrah's Entertainment is focused on building loyalty and value with its customers through a unique combination of great service, excellent products, unsurpassed distribution, operational excellence and technology leadership.

For more information about Harrah's, please visit: http://www.harrahs.com/ .