a convention center and other amenities when it opens in late 2009.

The centerpiece of the expansion is a new 665-room hotel tower dubbed the Octavius Tower. The Octavius Tower will be located adjacent to a new 263,000-square-foot meeting and convention center. Three new luxurious pool villa suites will be built along the second floor of the new tower and will overlook three new swimming pools that will rim an expanded outdoor whirlpool spa retreat, a poolside cafe and nearby garden wedding venue. The new tower will up the total room count from 3,348 to 4,013.

"This billion dollar investment in our flagship property, Caesars Palace in Las Vegas, is an important part of our comprehensive global growth strategy," said Gary Loveman, chairman, chief executive officer and president of Harrah's Entertainment, Inc. "From the United Kingdom to Las Vegas and beyond, we will continue to enhance our network of branded properties to deliver unforgettable guest experiences and provide good jobs for our nearly 100,000 team members around the world."

"With 2006 operating income up 63% over the prior year and impressive increases in customer service scores during the same period, Caesars Palace hasn't just gotten bigger since the 2005 opening of the Augustus Tower, it's gotten better," said Tom Jenkin, president of the Western Division of Harrah's Entertainment, Inc. "Our expansion plans in Las Vegas are a reality thanks to the hard work of a great employee team."

The $375 million Octavius Tower will include a 665-room, 23-story hotel tower rising 350 feet and a variety of suites including three pool villa suites. Additionally, new Octavius Tower, the resort's existing 512-room Forum Tower will undergo a major refurbishment. A regal new front entrance and expanded valet parking will open to expansive new casino interior decor, inviting guests to a remodeled buffet restaurant, redesigned Cypress Street Marketplace casual restaurant and enlarged Race & Sports Book.

Internationally acclaimed designer Wilson & Associates will create Octavius Tower interiors. Spacious guest rooms will offer the finest entertainment amenities, including large, flat-panel televisions and bedside clock radios with iPod(R) docking stations. Beds will be dressed with premium linens and bolster pillows; fashion-forward matlasses (mat lah SAYS) will replace traditional duvets. Luxurious marble bathrooms will feature generous dual-head showers and whirlpool tubs, with televisions above double vanities. Bathrooms will be bathed in natural light through doors that open into the bedrooms. With a nod to the resort's Greco-Roman heritage, guest room entry doors will be customized with Greek key patterns, where electronic doorbells and electronic "do not disturb" features will ensure guest privacy. Floors 21 through 23 will be comprised exclusively of suites; special key cards will be required to access these levels.

"Our guests have been thrilled with the Augustus Tower and its associated upscale services and amenities," said Gary Selesner, president of Caesars Palace. "This new expansion opens an exciting new chapter in the renaissance that began with opening of The Colosseum, and continues with the February 2008 debut of Bette Midler's all-new production, which will be presented a minimum of two years. With a spectacular new show, new guest rooms, suites and more, Caesars Palace will be well positioned to continue to welcome the world's most discriminating clientele."

The complete refurbishment of the Forum Tower is scheduled to be completed in January 2008 at a cost of $83 million. The tower's two penthouses will be remodeled by the first quarter of 2008.
Renowned design firm Hirsch-Bedner Associates is creating all Forum Tower interiors except the two penthouses, which were created by, and will be remodeled by Wilson & Associates.

Three new swimming pools will replace the resort's Apollo pool and outdoor spas. The three will be elevated to set them apart from the Temple, Venus and Neptune pools. One (1,600 square feet) will be available only to invited guests and will offer premium amenities and services. Two 1,900-square-foot pools will adjoin the new meeting and convention addition. These pools will be created not only for hotel guest use, but also for private pool parties and catered functions.

This expansion is another project in the extensive growth portfolio announced in the past 24 months by Harrah's, including: London Clubs International, Margaritaville Casino & Resort in Biloxi, Miss., The Pier at Caesars Atlantic City, a new hotel tower at Harrah's Atlantic City, a new hotel at Harrah's New Orleans, and a substantial expansion to the Horseshoe Casino in Hammond, Ind.

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