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LAS VEGAS --(BUSINESS WIRE)-- Continuing efforts to provide assistance to those hardest hit by Hurricanes Katrina and Rita, the Harrah's Employee Recovery Fund (HERF) recently issued $2.1 million in assistance to nearly 2,800 current and former employees of Harrah's Entertainment, Inc. (NYSE:HET) and its subsidiaries.

The distribution is the second made by the HERF, which previously paid $4.5 million to 3,600 employees. Any non-management employee impacted by the two hurricanes was eligible to apply for financial assistance from HERF; decisions were made according to need.

"The remarkable generosity shown by our employees, customers, business partners and friends in the community was truly inspiring," said Gary Loveman, chairman, chief executive officer and president of Harrah's Entertainment. "Their donations and efforts have helped thousands of our colleagues start down the path of recovery. We will not soon forget the kindness so many showed in our employees' hour of need."

Shortly after Hurricane Katrina made landfall, the Harrah's Foundation seeded the HERF with a contribution of $1 million, which was later raised to $1.5 million. Additional contributions were made by thousands of donors in the months that followed, capped by $2.1 million raised in a February 2006 benefit concert by Celine Dion, Elton John and Jerry Seinfeld at Caesars Palace.

The fund was just one facet of the company's comprehensive relief efforts for the nearly 9,000 employees who worked at four Harrah's properties closed by the storms. The company guaranteed employees' pay for 90 days, continued health insurance benefits, opened employee information and recovery centers in Mississippi and Louisiana, gave affected employees first preference for available jobs at the company's other casinos across the United States, and provided nearly $1.5 million in assistance to employees relocating to other properties.

Nine months after Katrina, Harrah's efforts to return to the Gulf Coast are well underway. In February Harrah's New Orleans re-opened its doors, and later this summer the company will open the first phase of a completely refurbished Grand Casino Biloxi. Harrah's expects to announce plans for the development of a destination resort in Biloxi later this summer.

"We are committed to the Gulf Coast, and look forward to expanding our presence in New Orleans and Biloxi in the years to come," Loveman said.

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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 68 years ago, Harrah's has grown through development of new properties, expansions and acquisitions. 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.

More information about Harrah's is available at its Web site -- http://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 contain 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 outcomes of contingencies and future financial results of Harrah's. These forward-looking statements are based on current expectations and projections about future events.

Investors are cautioned that forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that cannot be predicted or quantified and, consequently, the actual performance of Harrah's 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 (including the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" contained therein): the effects of local and national economic, credit and capital market conditions on the economy in general, and on the gaming and hotel industries in particular; construction factors, including delays, increased costs for labor and materials, availability of labor and materials, zoning issues, environmental restrictions, soil and water conditions, weather and other hazards, site access matters and building permit issues; the effects of environmental and structural building conditions relating to our properties; access to available and reasonable financing on a timely basis; the ability to timely and cost-effectively integrate Caesars into our operations; 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; the ability of our customer-tracking, customer loyalty and yield-management programs to continue to increase customer loyalty and same store sales or hotel sales; our ability to recoup costs of capital investments through higher revenues; acts of war or terrorist incidents or natural disasters; 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. Harrah's disclaims any obligation to update the forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date stated, or if no date is stated, as of the date of this press release.

CONTACT: Harrah's Entertainment, Inc., Las Vegas
Daniel Foley, 702-407-6370 (Investors)
Alberto Lopez, 702-407-6344 (Media)

SOURCE: Harrah's Entertainment, Inc.