Harrah's Entertainment's Rio First Nevada Casino to Offer Raining Diamonds Video Slots, Featuring Real Diamonds as Prizes

Press Release
July 11, 2001
LAS VEGAS, NV -- Harrah's Entertainment Inc. (NYSE:HET) yesterday announced that its Rio All-Suite Hotel & Casino in Las Vegas will be the first Nevada casino to offer customers a chance to play the new Raining Diamonds(TM) video slots, which offer authentic diamond jewelry jackpots.

Beginning July 12, Rio slot customers will have the first opportunity to win genuine diamond jewelry while playing the nine- line, nickel-denomination video slots developed and manufactured by Sierra Design Group.

Each Raining Diamonds(TM) machine features an exclusive, patented display unit incorporating a secure diamond vault. In addition, each game bank includes a larger prize vault, showcasing diamond jewelry in multiple prize tiers. Sierra Design Group worked for more than a year to develop, test and refine this distinctive slot product.

``These new machines contain real diamonds secured in vaults as part of the game's design,'' said Bruce Rowe, Harrah's Entertainment's vice president of Slot Operations Research and Development. ``The idea that customers can hit one of several possible jackpots and immediately select beautiful diamond jewelry to wear home is an exciting concept and one that is sure to appeal to slot players looking for something a little different on our casino floors.''

Rowe said the agreement between Harrah's Entertainment and Sierra Design Group grants Harrah's and Rio an exclusive right to introduce Raining Diamonds(TM) in each gaming market, including Nevada.

``This new product extends our strategy of securing the hottest new slot machines for our loyal customers to enjoy,'' explained David Norton, Harrah's vice president of Loyalty Marketing. ``We expect that this strategy, in association with our Total Rewards loyalty program and award-winning customer service, will make Harrah's the overwhelming choice for serious slot players.''

Founded more than 60 years ago, Harrah's Entertainment is the most recognized and respected name in the casino-entertainment industry, operating 21 casinos in the United States under the Harrah's, Showboat, Rio and Players brand names.

With a combined database of more than 23 million players, 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 on the company's Web site, www.harrahs.com.

Sierra Design Group, a Nevada corporation, is an industry-leading technology provider with principal offices in Reno, Nev., and Las Vegas as well as operations in California and Washington. Additional information about SDG is available on the company's Web site, www.sierradesign.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. These forward-looking statements generally can be identified by phrases such as the company ``believes,'' ``expects,'' ``anticipates,'' ``foresees,'' ``forecasts,'' ``estimates'' or other words or phrases of similar import. Similarly, such statements herein that describe the company's business strategy, outlook, objectives, plans, intentions or goals are also forward- looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements. Such risks and uncertainties include but are not limited to economic, bank, equity and debt-market conditions, changes in laws or regulations, third-party relations and approvals, decisions of courts, regulators and governmental bodies, factors affecting leverage, including interest rates, abnormal gaming holds, and effects of competition.

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Contact: 

     Harrah's Entertainment Inc., Las Vegas
     Gary Thompson, 702/407-6529 (media)
                    gthompson@harrahs.com
     Josh Hirsberg, 702/407-6376 (investors)
                    jhirsberg@harrahs.com