Exhibit 99.1

Contact:	Gary Thompson – Media	Jonathan Halkyard – Investors
	Harrah’s Entertainment, Inc.	Harrah’s Entertainment, Inc.
	(702) 407-6529	(702) 407-6080

Harrah’s Entertainment Reports 2008 Third-Quarter Global Results

• Revenues decline 6.8 percent from 2007 third quarter

• Property EBITDA declines 18.8 percent

LAS VEGAS – November 7, 2008 – Harrah’s Entertainment, Inc. today reported the following financial results for the 2008 third quarter and first nine months:

HARRAH’S ENTERTAINMENT, INC.

Company-wide Results

	Successor		Predecessor		Percent Increase/ (Decrease)
	Third Quarter
(In millions)	2008		2007
Total revenues	$	2,645.9	$	2,840.3	(6.8	)%
Property EBITDA		641.7		790.4	(18.8	)%
Adjusted EBITDA (1)		633.9		786.7	(19.4	)%

⁽¹⁾ Does not include the pro forma effect of yet-to-be realized cost savings.

In accordance with Generally Accepted Accounting Principles, we have separated our historical financial results for the Successor period from January 28, 2008 to September 30, 2008, and the Predecessor period from January 1, 2008 to January 27, 2008; however, we have also combined the Successor and Predecessor periods’ results for the nine months ended September 30, 2008, in the presentations included herein because Company management believes that it enables a meaningful presentation and comparison of results.

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	Successor Jan. 28, 2008 through Sept. 30, 2008		Predecessor Jan. 1, 2008 through Jan. 27, 2008		Combined		Predecessor		Percent Increase/ (Decrease)
					Nine Months Ended Sept. 30,
(In millions)					2008		2007
Total revenues	$	7,088.5	$	760.1	$	7,848.6	$	8,197.7	(4.3	)%
Property EBITDA		1,766.9		171.2		1,938.1		2,202.7	(12.0	)%
Adjusted EBITDA (1)		1,722.2		172.0		1,894.2		2,194.7	(13.7	)%

(1) Does not include the pro forma effect of yet-to-be realized cost savings.

Property Earnings Before Interest, Taxes, Depreciation and Amortization (Property EBITDA) and Adjusted EBITDA are not Generally Accepted Accounting Principles (GAAP) measurements but are commonly used in the gaming industry as measures of performance and as bases for valuation of gaming companies and, in the case of Adjusted EBITDA, as a measure of compliance with certain debt covenants. Reconciliations of Property EBITDA to income from operations and Adjusted EBITDA to income from continuing operations are attached to this release.

On January 28, 2008, Harrah’s Entertainment was acquired by affiliates of Apollo Global Management, LLC and TPG Capital, LP in a transaction valued at $30.7 billion, including assumption of $12.4 billion of debt and approximately $1.0 billion of acquisition costs. Harrah’s stockholders received $90 cash for each share of common stock, or a total of $17.3 billion.

The company’s third-quarter income from operations was $349.6 million, compared with $577.2 million in the 2007 third quarter. The net loss for the 2008 third quarter was $129.7 million, compared with net income of $244.4 million in the year-ago quarter.

Revenues for the first nine months of 2008 declined 4.3 percent to $7.85 billion from $8.20 billion in the first nine months of 2007. Income from operations totaled $1.07 billion in the 2008 first nine months, compared with $1.51 billion in the prior-year period. The net loss for the first nine months of 2008 was $415.1 million, compared with net income of $667.2 million in the first nine months of 2007.

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“The economic upheaval weighing on the country continued to impact our results throughout the third quarter,” said Gary Loveman, Harrah’s chairman, president and chief executive officer. “While we’re hopeful the federal government’s recent actions to restore order to the financial markets may lead to an eventual economic recovery, there is no certainty as to its timing.

“As a result, we believe it’s prudent to ensure our costs remain aligned with reduced levels of business activity and that we conserve cash,” Loveman said.

“Reduced spending by visitors to Las Vegas and the closure of our Gulf Coast properties in advance of Hurricane Ike also impacted third-quarter results,” Loveman said. “But our ability to outperform our competition in certain markets once again demonstrated the benefits of operating the most geographically diverse portfolio of properties in gaming. In particular, results from the opening of the $485 million expansion at Horseshoe Hammond midway through the third quarter were strong.”

A substantial portion of the debt of Harrah’s Entertainment’s consolidated group is issued by Harrah’s Operating Company, Inc., (HOC) a wholly owned subsidiary of Harrah’s Entertainment, Inc. Therefore, the company believes it is meaningful to also provide information pertaining solely to the results of operations of HOC. The information for HOC assumes that a post-January 2008 swap of certain properties between HOC and Harrah’s Entertainment that was consummated during the 2008 second quarter actually occurred on January 1, 2007.

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HARRAH’S OPERATING COMPANY

Overall

	Successor		Predecessor		Percent Increase/ (Decrease)
	Third Quarter
(In millions)	2008		2007
Total revenues	$	2,025.5	$	2,153.6	(5.9	)%
Property EBITDA		464.4		584.5	(20.5	)%
Adjusted EBITDA (1)		454.4		584.9	(22.3	)%

	Successor Jan. 28, 2008 through Sept. 30, 2008		Predecessor Jan. 1, 2008 through Jan. 27, 2008		Combined		Predecessor		Percent Increase/ (Decrease)
					Nine Months Ended Sept. 30,
(In millions)					2008		2007
Total revenues	$	5,364.9	$	577.5	$	5,942.4	$	6,164.3	(3.6	)%
Property EBITDA		1,244.3		109.6		1,353.9		1,597.3	(15.2	)%
Adjusted EBITDA (1)		1,179.9		143.0		1,322.9		1,605.4	(17.6	)%

⁽¹⁾ Does not include the pro forma effect of yet-to-be realized cost savings.

Summaries of results by region follow:

Las Vegas Region

Third-quarter results for the company’s Las Vegas Region were lower than in the year-ago quarter due to reduced visitation and lower customer spend per trip. Nine-month declines were driven by lower spend per trip and fewer hotel rooms available due to room remodeling and remediation projects at three Harrah’s properties.

HARRAH’S ENTERTAINMENT, INC.

Las Vegas Region

	Successor		Predecessor		Percent Increase/ (Decrease)
	Third Quarter
(In millions)	2008		2007
Total revenues	$	796.8	$	900.4	(11.5	)%
Income from operations		155.4		212.8	(27.0	)%
Property EBITDA		230.0		275.8	(16.6	)%

	Successor Jan. 28, 2008 through Sept. 30, 2008		Predecessor Jan. 1, 2008 through Jan. 27, 2008		Combined		Predecessor		Percent Increase/ (Decrease)
					Nine Months Ended Sept. 30,
(In millions)					2008		2007
Total revenues	$	2,279.2	$	253.6	$	2,532.8	$	2,721.5	(6.9	)%
Income from operations		497.3		51.9		549.2		687.3	(20.1	)%
Property EBITDA		715.7		76.0		791.7		879.9	(10.0	)%

Las Vegas Region properties include Harrah’s Las Vegas, Rio, Bally’s Las Vegas, Paris, Flamingo Las Vegas, Caesars Palace, Imperial Palace and Bill’s Gamblin’ Hall & Saloon.

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HARRAH’S OPERATING COMPANY

Las Vegas Region

	Successor		Predecessor		Percent Increase/ (Decrease)
	Third Quarter
(In millions)	2008		2007
Total revenues	$	355.1	$	402.1	(11.7	)%
Income from operations		66.8		96.1	(30.5	)%
Property EBITDA		96.5		123.3	(21.7	)%

	Successor Jan. 28, 2008 through Sept. 30, 2008		Predecessor Jan. 1, 2008 through Jan. 27, 2008		Combined		Predecessor		Percent Increase/ (Decrease)
					Nine Months Ended Sept. 30,
(In millions)					2008		2007
Total revenues	$	996.5	$	118.5	$	1,115.0	$	1,207.9	(7.7	)%
Income from operations		207.1		29.7		236.8		306.8	(22.8	)%
Property EBITDA		288.5		38.1		326.6		395.4	(17.4	)%

Las Vegas Region properties include Bally’s Las Vegas, Caesars Palace, Imperial Palace and Bill’s Gamblin’ Hall & Saloon since its acquisition on February 27, 2007.

Atlantic City Region

Lower third-quarter results were due primarily to reduced visitor volume and higher operating costs, partially offset by favorable results at Harrah’s Atlantic City, which benefited from a recent expansion.

Nine-month revenues were slightly higher due to the inclusion of Harrah’s Chester and a strong performance at Harrah’s Atlantic City, which opened its expansion in phases during the first half of the year. Income from operations was affected by the Atlantic City smoking restrictions, competition from slot parlors in feeder markets and higher operating costs.

HARRAH’S ENTERTAINMENT, INC.

Atlantic City Region

	Successor		Predecessor		Percent Increase/ (Decrease)
	Third Quarter
(In millions)	2008		2007
Total revenues	$	655.1	$	671.5	(2.4	)%
Income from operations		123.5		141.0	(12.4	)%
Property EBITDA		164.5		202.7	(18.8	)%

	Successor Jan. 28, 2008 through Sept. 30, 2008		Predecessor Jan. 1, 2008 through Jan. 27, 2008		Combined		Predecessor		Percent Increase/ (Decrease)
					Nine Months Ended Sept. 30,
(In millions)					2008		2007
Total revenues	$	1,663.2	$	160.8	$	1,824.0	$	1,810.2	0.8	%
Income from operations		254.0		18.7		272.7		290.3	(6.1	)%
Property EBITDA		397.3		36.4		433.7		478.8	(9.4	)%

Atlantic City Region properties include Harrah’s Atlantic City, Showboat Atlantic City, Caesars Atlantic City, Bally’s Atlantic City and Harrah’s Chester.

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HARRAH’S OPERATING COMPANY

Atlantic City Region

	Successor		Predecessor		Percent Increase/ (Decrease)
	Third Quarter
(In millions)	2008		2007
Total revenues	$	495.1	$	529.6	(6.5	)%
Income from operations		88.1		106.8	(17.5	)%
Property EBITDA		118.0		154.3	(23.5	)%

	Successor Jan. 28, 2008 through Sept. 30, 2008		Predecessor Jan. 1, 2008 through Jan. 27, 2008		Combined		Predecessor		Percent Increase/ (Decrease)
					Nine Months Ended Sept. 30,
(In millions)					2008		2007
Total revenues	$	1,276.0	$	125.8	$	1,401.8	$	1,430.0	(2.0	)%
Income from operations		184.5		8.0		192.5		222.1	(13.3	)%
Property EBITDA		287.1		21.9		309.0		365.4	(15.4	)%

Atlantic City Region properties include Showboat Atlantic City, Caesars Atlantic City, Bally’s Atlantic City and Harrah’s Chester.

Louisiana/Mississippi Region

Combined third-quarter results declined for the Louisiana/Mississippi Region due to temporary hurricane-related evacuations and property closures. Income from operations declined in the 2008 third quarter from the year-ago period, which included $61.1 million of insurance proceeds.

Combined nine-month revenues decreased due to lower visitor volume in the Tunica market and the impact of disruptions during the renovations at the former Grand Tunica. Income from operations for the first nine months of 2008 included $185.4 million of insurance proceeds in excess of the net book value of impacted assets, costs and expenses related to 2005 hurricanes, while the 2007 nine-month income from operations includes $116.9 million of such insurance proceeds.

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HARRAH’S ENTERTAINMENT, INC.

Louisiana/Mississippi Region

	Successor		Predecessor		Percent Increase/ (Decrease)
	Third Quarter
(In millions)	2008		2007
Total revenues	$	368.2	$	391.6	(6.0	)%
Income from operations		49.2		123.7	(60.2	)%
Property EBITDA		73.8		92.8	(20.5	)%

	Successor Jan. 28, 2008 through Sept. 30, 2008		Predecessor Jan. 1, 2008 through Jan. 27, 2008		Combined		Predecessor		Percent Increase/ (Decrease)
					Nine Months Ended Sept. 30,
(In millions)					2008		2007
Total revenues	$	1,010.8	$	106.1	$	1,116.9	$	1,171.1	(4.6	)%
Income from operations		327.9		10.1		338.0		292.9	15.4	%
Property EBITDA		217.9		18.6		236.5		265.8	(11.0	)%

Louisiana/Mississippi Region properties include Harrah’s New Orleans, Horseshoe Bossier City, Louisiana Downs, Horseshoe Tunica, Harrah’s Tunica, Sheraton Tunica and Grand Casino Biloxi.

Iowa/Missouri Region

Combined third-quarter and nine-month revenues were lower than in the year-ago periods due primarily to competition from a new facility that opened in the St. Louis market. Income from operations was higher in the 2008 third quarter as a result of cost savings and lower depreciation and amortization resulting from the preliminary purchase price allocation in connection with the merger.

HARRAH’S ENTERTAINMENT, INC.

Iowa/Missouri Region

	Successor		Predecessor		Percent Increase/ (Decrease)
	Third Quarter
(In millions)	2008		2007
Total revenues	$	198.0	$	206.8	(4.3	)%
Income from operations		41.8		39.7	5.3	%
Property EBITDA		53.5		59.7	(10.4	)%

	Successor Jan. 28, 2008 through Sept. 30, 2008		Predecessor Jan. 1, 2008 through Jan. 27, 2008		Combined		Predecessor		Percent Increase/ (Decrease)
					Nine Months Ended Sept. 30,
(In millions)					2008		2007
Total revenues	$	537.3	$	55.8	$	593.1	$	613.8	(3.4	)%
Income from operations		112.8		7.7		120.5		110.0	9.5	%
Property EBITDA		148.0		13.0		161.0		169.5	(5.0	)%

Iowa/Missouri Region properties include Harrah’s St. Louis, Harrah’s Council Bluffs, Horseshoe Council Bluffs and Harrah’s North Kansas City.

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Illinois/Indiana Region

The opening of a major renovation and expansion at Horseshoe Hammond on August 8 helped partially offset the impact of a smoking ban in Illinois that led to lower 2008 third-quarter and nine-month results in the Illinois/Indiana Region. The nine-month numbers were also impacted by heavy rains and flooding that lead to the closure of our Southern Indiana property, now known as Horseshoe Southern Indiana, for four days in March 2008.

HARRAH’S ENTERTAINMENT, INC.

Illinois/Indiana Region

	Successor		Predecessor		Percent Increase/ (Decrease)
	Third Quarter
(In millions)	2008		2007
Total revenues	$	301.9	$	328.5	(8.1	)%
Income from operations		21.5		57.7	(62.7	)%
Property EBITDA		54.3		69.7	(22.1	)%

	Successor Jan. 28, 2008 through Sept. 30, 2008		Predecessor Jan. 1, 2008 through Jan. 27, 2008		Combined		Predecessor		Percent Increase/ (Decrease)
					Nine Months Ended Sept. 30,
(In millions)					2008		2007
Total revenues	$	804.5	$	85.5	$	890.0	$	974.7	(8.7	)%
Income from operations		91.3		8.7		100.0		158.9	(37.1	)%
Property EBITDA		150.7		13.6		164.3		204.1	(19.5	)%

Illinois/Indiana properties include Horseshoe Hammond, Harrah’s Joliet, Harrah’s Metropolis and Horseshoe Southern Indiana.

Other Nevada Region

Third-quarter and nine-month results for the Other Nevada Region declined due to lower spend per trip and higher promotional costs in the Reno and Laughlin markets, and increased competition in Reno.

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HARRAH’S ENTERTAINMENT, INC.

Other Nevada

	Successor		Predecessor		Percent Increase/ (Decrease)
	Third Quarter
(In millions)	2008		2007
Total revenues	$	170.4	$	176.4	(3.4	)%
Income from operations		33.7		36.7	(8.2	)%
Property EBITDA		45.4		50.0	(9.2	)%

	Successor Jan. 28, 2008 through Sept. 30, 2008		Predecessor Jan. 1, 2008 through Jan. 27, 2008		Combined		Predecessor		Percent Increase/ (Decrease)
					Nine Months Ended Sept. 30,
(In millions)					2008		2007
Total revenues	$	419.0	$	38.9	$	457.9	$	484.2	(5.4	)%
Income from operations		59.7		0.5		60.2		79.4	(24.2	)%
Property EBITDA		93.0		4.5		97.5		117.4	(17.0	)%

Other Nevada properties include Harrah’s Reno, Harrah’s Lake Tahoe, Harveys Lake Tahoe, Bill’s Casino and Harrah’s Laughlin.

HARRAH’S OPERATING COMPANY

Other Nevada

	Successor		Predecessor		Percent Increase/ (Decrease)
	Third Quarter
(In millions)	2008		2007
Total revenues	$	127.5	$	130.9	(2.6	)%
Income from operations		27.4		25.0	9.6	%
Property EBITDA		34.1		35.5	(3.9	)%

	Successor Jan. 28, 2008 through Sept. 30, 2008		Predecessor Jan. 1, 2008 through Jan. 27, 2008			Combined		Predecessor		Percent Increase/ (Decrease)
						Nine Months Ended Sept. 30,
(In millions)						2008		2007
Total revenues	$	299.8	$	26.8		$	326.6	$	347.2	(5.9	)%
Income/(loss) from operations		40.5		(1.9	)		38.6		43.8	(11.9	)%
Property EBITDA		60.3		1.2			61.5		73.6	(16.4	)%

Other Nevada properties include Harrah’s Reno, Harrah’s Lake Tahoe, Harveys Lake Tahoe and Bill’s Casino.

Managed/International/Other

Third-quarter and nine-month 2008 results were impacted by a $12.6 million charge to recognize the remaining exposure under a lease agreement for office space no longer utilized by the company in Memphis, and a smoking ban in the United Kingdom, a lower table-games hold percentage and higher gaming taxes, all of which affected London Clubs International operations. Also impacting results were lower management fees due to the impact of the

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economy on our managed properties and a change in the fee structure at one of our managed properties. Nine-month results were also affected by termination of a Native American management contract in June 2007. .

HARRAH’S ENTERTAINMENT, INC.

Managed/International/Other

	Successor			Predecessor		Percent Increase/ (Decrease)
	Third Quarter
(In millions)	2008			2007
Total revenues	$	155.5		$	165.1	(5.8	)%
Income from operations		(39.8	)		3.9	N/M
Property EBITDA		20.2			39.7	(49.1	)%

	Successor Jan. 28, 2008 through Sept. 30, 2008			Predecessor Jan. 1, 2008 through Jan. 27, 2008			Combined			Predecessor			Percent Increase/ (Decrease)
							Nine Months Ended Sept. 30,
(In millions)							2008			2007
Total revenues	$	374.5		$	59.4		$	433.9		$	422.2		2.8	%
Income from operations		(113.5	)		(0.3	)		(113.8	)		(6.5	)	N/M
Property EBITDA		44.3			9.1			53.4			87.2		(38.8	)%

Managed/International/Other results include income from our managed properties, results of our international properties and certain marketing and administrative expenses, including development costs, and income from our non-consolidated subsidiaries.

Other items

Interest expense increased significantly from the 2007 third quarter and nine months due to higher debt levels associated with the company’s acquisition, which was consummated in the 2008 first quarter. Interest expense in the 2008 third quarter and nine months, respectively, includes a credit of $14.0 million and a charge of $66.9 million representing changes in the fair-market values of derivative instruments. The average interest rate on the company’s variable-rate debt, including the impact of the derivative instruments, was 5.79 percent at September 30, 2008.

Third-quarter 2008 results also included gains of $7.4 million due to the early extinguishments of debt.

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For the 2008 third quarter, tax benefits were generated by operating losses at an effective rate of 26.1 percent, whereas in the 2007 third quarter operating income resulted in tax expenses at an effective rate of 38.4 percent.

The company performs its annual assessment of intangible assets for impairment during the fourth quarter of each year. The company’s annual budget and forecasting process is also completed in the fourth quarter and provides key inputs into the impairment analysis. The provisions of Statement of Financial Accounting Standards No. 142 call for interim testing if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. An example of an event is a significant adverse change in the business climate, which the company believes has occurred during the third quarter. Given that the purchase price allocation related to the merger has not yet been finalized and that other key inputs that support the impairment analysis are not yet available, it was not reasonably possible to develop an estimate of any potential impairment in the third quarter. The allocation of the purchase price related to the merger and the annual impairment analysis will be completed during the fourth quarter. Management believes there is reasonable possibility that the completion of these activities will result in a non-cash impairment charge in the fourth quarter. Management cannot reasonably estimate the amount of the charge until the analysis is completed.

Harrah’s will host a conference today at 8 a.m. Pacific Time to discuss its 2008 third-quarter results. Persons from the United States and Canada who are interested in participating in the call should dial 1-877-876-8924, or 1-706-758-4271 for international callers, approximately 10 minutes before the call start time. A taped replay of the conference call will be available at

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1-800-642-1687, or 1-706-645-9291 for international callers, beginning at 9 a.m. PDT the day of the call. The replay will be available through 8:59 p.m. PT November 21. The pass-code number for the conference call and replay is 68328144.

Harrah’s Entertainment, Inc. is the world’s largest provider of branded casino entertainment. Since its beginning in Reno, Nevada, more than 70 years ago, Harrah’s has grown through development of new properties, expansions and acquisitions, and now operates 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 and the World Series of Poker^®. 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, please visit 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.

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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 outcome of any legal proceedings that have been, or will be, instituted against the company related to the acquisition of the company by affiliates of TPG Capital and Apollo Management; the impact of the company’s significant indebtedness; 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 acquisition into our operations; changes in laws, including increased tax rates, smoking bans, 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; the potential difficulties in employee retention as a result of the sale of the company to affiliates of

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TPG Capital and Apollo Management; 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.

-More-

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HARRAH’S ENTERTAINMENT, INC.

CONSOLIDATED SUMMARY OF OPERATIONS

(UNAUDITED)

	Successor			Predecessor			Successor			Predecessor			Combined			Predecessor
							Jan. 28, 2008 Through Sept. 30, 2008			Jan. 1, 2008 Through Jan. 27, 2008			Nine Months Ended
	Third Quarter Ended												Sept. 30,
(In millions)	Sept. 30, 2008			Sept. 30, 2007									2008			2007
Revenues	$	2,645.9		$	2,840.3		$	7,088.5		$	760.1		$	7,848.6		$	8,197.7
Property operating expenses		(2,004.2	)		(2,049.9	)		(5,321.6	)		(588.9	)		(5,910.5	)		(5,995.0	)
Depreciation and amortization		(152.0	)		(206.8	)		(452.4	)		(63.5	)		(515.9	)		(601.4	)
Operating profit		489.7			583.6			1,314.5			107.7			1,422.2			1,601.3
Corporate expense		(34.7	)		(37.6	)		(95.9	)		(8.5	)		(104.4	)		(97.7	)
Merger and integration costs		(1.0	)		(0.7	)		(23.1	)		(125.6	)		(148.7	)		(8.3	)
Income/(loss) on interests in non-consolidated affiliates		(2.5	)		(0.1	)		(1.3	)		0.5			(0.8	)		3.6
Amortization of intangible assets		(38.8	)		(17.7	)		(119.2	)		(5.5	)		(124.7	)		(53.5	)
Project opening costs and other items		(63.1	)		49.7			35.5			(5.4	)		30.1			60.9
Income/(loss) from operations		349.6			577.2			1,110.5			(36.8	)		1,073.7			1,506.3
Interest expense, net of interest capitalized		(533.4	)		(216.1	)		(1,469.4	)		(89.7	)		(1,559.1	)		(578.4	)
Losses on early extinguishments of debt		7.4			(2.0	)		(203.9	)		—			(203.9	)		(2.0	)
Other income, including interest income		7.2			4.9			18.7			1.1			19.8			28.7
(Loss)/income before income taxes and minority interests		(169.2	)		364.0			(544.1	)		(125.4	)		(669.5	)		954.6
Income tax benefit/(provision)		46.0			(137.4	)		147.7			26.0			173.7			(354.1	)
Minority interests		(7.2	)		(6.0	)		(6.2	)		(1.6	)		(7.8	)		(17.2	)
(Loss)/income from continuing operations		(130.4	)		220.6			(402.6	)		(101.0	)		(503.6	)		583.3
Discontinued operations, net of tax		0.7			23.8			88.4			0.1			88.5			83.9
Net (loss)/income	$	(129.7	)	$	244.4		$	(314.2	)	$	(100.9	)	$	(415.1	)	$	667.2

15

HARRAH’S ENTERTAINMENT, INC.

SUPPLEMENTAL OPERATING INFORMATION

(UNAUDITED)

	Successor			Predecessor			Successor			Predecessor			Combined			Predecessor
	Third Quarter Ended						Jan. 28, 2008 Through Sept. 30, 2008			Jan. 1, 2008 Through Jan. 27, 2008			Nine Months Ended Sept. 30,
(In millions)	Sept. 30, 2008			Sept. 30, 2007									2008			2007
Revenues
Las Vegas Region	$	796.8		$	900.4		$	2,279.2		$	253.6		$	2,532.8		$	2,721.5
Atlantic City Region		655.1			671.5			1,663.2			160.8			1,824.0			1,810.2
Louisiana/Mississippi Region		368.2			391.6			1,010.8			106.1			1,116.9			1,171.1
Iowa/Missouri Region		198.0			206.8			537.3			55.8			593.1			613.8
Illinois/Indiana Region		301.9			328.5			804.5			85.5			890.0			974.7
Other Nevada Region		170.4			176.4			419.0			38.9			457.9			484.2
Managed/International/Other		155.5			165.1			374.5			59.4			433.9			422.2
Total Revenues	$	2,645.9		$	2,840.3		$	7,088.5		$	760.1		$	7,848.6		$	8,197.7
Income/(loss) from operations
Las Vegas Region	$	155.4		$	212.8		$	497.3		$	51.9		$	549.2		$	687.3
Atlantic City Region		123.5			141.0			254.0			18.7			272.7			290.3
Louisiana/Mississippi Region		49.2			123.7			327.9			10.1			338.0			292.9
Iowa/Missouri Region		41.8			39.7			112.8			7.7			120.5			110.0
Illinois/Indiana Region		21.5			57.7			91.3			8.7			100.0			158.9
Other Nevada Region		33.7			36.7			59.7			0.5			60.2			79.4
Managed/International/Other		(39.8	)		3.9			(113.5	)		(0.3	)		(113.8	)		(6.5	)
Corporate Expense		(34.7	)		(37.6	)		(95.9	)		(8.5	)		(104.4	)		(97.7	)
Merger and integration costs		(1.0	)		(0.7	)		(23.1	)		(125.6	)		(148.7	)		(8.3	)
Total Income/(loss) from operations	$	349.6		$	577.2		$	1,110.5		$	(36.8	)	$	1,073.7		$	1,506.3
Property EBITDA (a)
Las Vegas Region	$	230.0		$	275.8		$	715.7		$	76.0		$	791.7		$	879.9
Atlantic City Region		164.5			202.7			397.3			36.4			433.7			478.8
Louisiana/Mississippi Region		73.8			92.8			217.9			18.6			236.5			265.8
Iowa/Missouri Region		53.5			59.7			148.0			13.0			161.0			169.5
Illinois/Indiana Region		54.3			69.7			150.7			13.6			164.3			204.1
Other Nevada Region		45.4			50.0			93.0			4.5			97.5			117.4
Managed/International/Other		20.2			39.7			44.3			9.1			53.4			87.2
Total Property EBITDA	$	641.7		$	790.4		$	1,766.9		$	171.2		$	1,938.1		$	2,202.7
Project opening costs and other items
Project opening costs	$	(16.3	)	$	(4.8	)	$	(26.3	)	$	(0.7	)	$	(27.0	)	$	(22.1	)
Insurance proceeds for hurricane losses		—			61.1			185.4			—			185.4			116.9
Other write-downs, reserves and recoveries		(46.8	)		(6.6	)		(123.6	)		(4.7	)		(128.3	)		(33.9	)
Total Project opening costs and other items	$	(63.1	)	$	49.7		$	35.5		$	(5.4	)	$	30.1		$	60.9

(a) Property EBITDA (earnings before interest, taxes, depreciation and amortization) consists of Income from operations before depreciation and amortization, write-downs, reserves and recoveries, project opening costs, corporate expense, merger and integration costs, income/(losses) on interests in non-consolidated affiliates and amortization of intangible assets. Property EBITDA is a supplemental financial measure used by management, as well as industry analysts, to evaluate our operations. However, Property EBITDA should not be construed as an alternative to Income from operations (as an indicator of our operating performance) or to Cash flows from operating activities (as a measure of liquidity) as determined in accordance with generally accepted accounting principles. All companies do not calculate EBITDA in the same manner. As a result, Property EBITDA as presented by our Company may not be comparable to similarly titled measures presented by other companies.

16

HARRAH’S ENTERTAINMENT, INC.

SUPPLEMENTAL INFORMATION

RECONCILIATION OF PROPERTY EBITDA TO INCOME FROM OPERATIONS

(UNAUDITED)

	Successor
	Third Quarter Ended Sept. 30, 2008
(In millions)	Las Vegas Region			Atlantic City Region			Louisiana/ Mississippi Region			Iowa/ Missouri Region			Illinois/ Indiana Region			Other Nevada Region			Other			Total
Revenues	$	796.8		$	655.1		$	368.2		$	198.0		$	301.9		$	170.4		$	155.5		$	2,645.9
Property operating expenses		(566.8	)		(490.6	)		(294.4	)		(144.5	)		(247.6	)		(125.0	)		(135.3	)		(2,004.2	)
Property EBITDA		230.0			164.5			73.8			53.5			54.3			45.4			20.2			641.7
Depreciation and amortization		(40.7	)		(40.5	)		(16.4	)		(11.6	)		(18.5	)		(8.4	)		(15.9	)		(152.0	)
Operating profit		189.3			124.0			57.4			41.9			35.8			37.0			4.3			489.7
Amortization of intangible assets		(19.2	)		0.1			(4.0	)		—			(0.2	)		(3.3	)		(12.2	)		(38.8	)
Losses on interests in non-consolidated affiliates		—			—			0.2			—			—			—			(2.7	)		(2.5	)
Project opening costs and other items		(14.7	)		(0.6	)		(4.4	)		(0.1	)		(14.1	)		—			(29.2	)		(63.1	)
Corporate expense		—			—			—			—			—			—			(34.7	)		(34.7	)
Merger and integration costs		—			—			—			—			—			—			(1.0	)		(1.0	)
Income/(loss) from operations*	$	155.4		$	123.5		$	49.2		$	41.8		$	21.5		$	33.7		$	(75.5	)	$	349.6
	Predecessor
	Third Quarter Ended Sept. 30, 2007
	Las Vegas Region			Atlantic City Region			Louisiana/ Mississippi Region			Iowa/ Missouri Region			Illinois/ Indiana Region			Other Nevada Region			Other			Total
Revenues	$	900.4		$	671.5		$	391.6		$	206.8		$	328.5		$	176.4		$	165.1		$	2,840.3
Property operating expenses		(624.6	)		(468.8	)		(298.8	)		(147.1	)		(258.8	)		(126.4	)		(125.4	)		(2,049.9	)
Property EBITDA		275.8			202.7			92.8			59.7			69.7			50.0			39.7			790.4
Depreciation and amortization		(60.4	)		(54.6	)		(25.8	)		(18.1	)		(14.6	)		(13.0	)		(20.3	)		(206.8	)
Operating profit		215.4			148.1			67.0			41.6			55.1			37.0			19.4			583.6
Amortization of intangible assets		(3.4	)		(6.4	)		(2.0	)		(0.7	)		(2.0	)		(0.2	)		(3.0	)		(17.7	)
Income on interests in non-consolidated affiliates		—			—			—			—			—			—			(0.1	)		(0.1	)
Project opening costs and other items		0.8			(0.7	)		58.7			(1.2	)		4.6			(0.1	)		(12.4	)		49.7
Corporate expense		—			—			—			—			—			—			(37.6	)		(37.6	)
Merger and integration costs		—			—			—			—			—			—			(0.7	)		(0.7	)
Income/(loss) from operations*	$	212.8		$	141.0		$	123.7		$	39.7		$	57.7		$	36.7		$	(34.4	)	$	577.2

* Total Income from operations as reported on this schedule corresponds with the amounts reported for the respective periods on our CONSOLIDATED SUMMARY OF OPERATIONS. See our CONSOLIDATED SUMMARY OF OPERATIONS for the additional income and expenses recorded in the determination of Net income.

17

HARRAH’S ENTERTAINMENT, INC.

SUPPLEMENTAL INFORMATION

RECONCILIATION OF PROPERTY EBITDA TO INCOME FROM OPERATIONS

(UNAUDITED)

	Successor
	Jan. 28, 2008 Through Sept. 30, 2008
(In millions)	Las Vegas Region			Atlantic City Region			Louisiana/ Mississippi Region			Iowa/ Missouri Region			Illinois/ Indiana Region			Other Nevada Region			Other			Total
Revenues	$	2,279.2		$	1,663.2		$	1,010.8		$	537.3		$	804.5		$	419.0		$	374.5		$	7,088.5
Property operating expenses		(1,563.5	)		(1,265.9	)		(792.9	)		(389.3	)		(653.8	)		(326.0	)		(330.2	)		(5,321.6	)
Property EBITDA		715.7			397.3			217.9			148.0			150.7			93.0			44.3			1,766.9
Depreciation and amortization		(123.8	)		(128.4	)		(53.8	)		(34.9	)		(40.0	)		(24.1	)		(47.4	)		(452.4	)
Operating profit		591.9			268.9			164.1			113.1			110.7			68.9			(3.1	)		1,314.5
Amortization of intangible assets		(50.6	)		(10.0	)		(14.7	)		—			(0.9	)		(9.2	)		(33.8	)		(119.2	)
Income on interests in non-consolidated affiliates		—			—			0.2			—			—			—			(1.5	)		(1.3	)
Project opening costs and other items		(44.0	)		(4.9	)		178.3			(0.3	)		(18.5	)		—			(75.1	)		35.5
Corporate expense		—			—			—			—			—			—			(95.9	)		(95.9	)
Merger and integration costs		—			—			—			—			—			—			(23.1	)		(23.1	)
Income/(loss) from operations*	$	497.3		$	254.0		$	327.9		$	112.8		$	91.3		$	59.7		$	(232.5	)	$	1,110.5
	Predecessor
	Jan. 1, 2008 Through Jan. 27, 2008
	Las Vegas Region			Atlantic City Region			Louisiana/ Mississippi Region			Iowa/ Missouri Region			Illinois/ Indiana Region			Other Nevada Region			Other			Total
Revenues	$	253.6		$	160.8		$	106.1		$	55.8		$	85.5		$	38.9		$	59.4		$	760.1
Property operating expenses		(177.6	)		(124.4	)		(87.5	)		(42.8	)		(71.9	)		(34.4	)		(50.3	)		(588.9	)
Property EBITDA		76.0			36.4			18.6			13.0			13.6			4.5			9.1			171.2
Depreciation and amortization		(18.7	)		(15.7	)		(8.6	)		(5.1	)		(4.3	)		(3.9	)		(7.2	)		(63.5	)
Operating profit		57.3			20.7			10.0			7.9			9.3			0.6			1.9			107.7
Amortization of intangible assets		(1.0	)		(1.9	)		(0.5	)		(0.2	)		(0.6	)		(0.1	)		(1.2	)		(5.5	)
Income on interests in non-consolidated affiliates		—			—			—			—			—			—			0.5			0.5
Project opening costs and other items		(4.4	)		(0.1	)		0.6			—			—			—			(1.5	)		(5.4	)
Corporate expense		—			—			—			—			—			—			(8.5	)		(8.5	)
Merger and integration costs		—			—			—			—			—			—			(125.6	)		(125.6	)
Income/(loss) from operations*	$	51.9		$	18.7		$	10.1		$	7.7		$	8.7		$	0.5		$	(134.4	)	$	(36.8	)

* Total Income from operations as reported on this schedule corresponds with the amounts reported for the respective periods on our CONSOLIDATED SUMMARY OF OPERATIONS. See our CONSOLIDATED SUMMARY OF OPERATIONS for the additional income and expenses recorded in the determination of Net income.

18

HARRAH’S ENTERTAINMENT, INC.

SUPPLEMENTAL INFORMATION

RECONCILIATION OF PROPERTY EBITDA TO INCOME FROM OPERATIONS

(UNAUDITED)

	Combined
	Nine Months Ended Sept. 30, 2008
(In millions)	Las Vegas Region			Atlantic City Region			Louisiana/ Mississippi Region			Iowa/ Missouri Region			Illinois/ Indiana Region			Other Nevada Region			Other			Total
Revenues	$	2,532.8		$	1,824.0		$	1,116.9		$	593.1		$	890.0		$	457.9		$	433.9		$	7,848.6
Property operating expenses		(1,741.1	)		(1,390.3	)		(880.4	)		(432.1	)		(725.7	)		(360.4	)		(380.5	)		(5,910.5	)
Property EBITDA		791.7			433.7			236.5			161.0			164.3			97.5			53.4			1,938.1
Depreciation and amortization		(142.5	)		(144.1	)		(62.4	)		(40.0	)		(44.3	)		(28.0	)		(54.6	)		(515.9	)
Operating profit		649.2			289.6			174.1			121.0			120.0			69.5			(1.2	)		1,422.2
Amortization of intangible assets		(51.6	)		(11.9	)		(15.2	)		(0.2	)		(1.5	)		(9.3	)		(35.0	)		(124.7	)
Income on interests in non-consolidated affiliates		—			—			0.2			—			—			—			(1.0	)		(0.8	)
Project opening costs and other items		(48.4	)		(5.0	)		178.9			(0.3	)		(18.5	)		—			(76.6	)		30.1
Corporate expense		—			—			—			—			—			—			(104.4	)		(104.4	)
Merger and integration costs		—			—			—			—			—			—			(148.7	)		(148.7	)
Income/(loss) from operations*	$	549.2		$	272.7		$	338.0		$	120.5		$	100.0		$	60.2		$	(366.9	)	$	1,073.7
	Predecessor
	Nine Months Ended Sept. 30, 2007
	Las Vegas Region			Atlantic City Region			Louisiana/ Mississippi Region			Iowa/ Missouri Region			Illinois/ Indiana Region			Other Nevada Region			Other			Total
Revenues	$	2,721.5		$	1,810.2		$	1,171.1		$	613.8		$	974.7		$	484.2		$	422.2		$	8,197.7
Property operating expenses		(1,841.6	)		(1,331.4	)		(905.3	)		(444.3	)		(770.6	)		(366.8	)		(335.0	)		(5,995.0	)
Property EBITDA		879.9			478.8			265.8			169.5			204.1			117.4			87.2			2,202.7
Depreciation and amortization		(177.1	)		(157.9	)		(75.3	)		(55.3	)		(42.6	)		(36.9	)		(56.3	)		(601.4	)
Operating profit		702.8			320.9			190.5			114.2			161.5			80.5			30.9			1,601.3
Amortization of intangible assets		(10.3	)		(19.2	)		(6.1	)		(2.4	)		(5.9	)		(0.6	)		(9.0	)		(53.5	)
Income on interests in non-consolidated affiliates		—			—			—			—			—			—			3.6			3.6
Project opening costs and other items		(5.2	)		(11.4	)		108.5			(1.8	)		3.3			(0.5	)		(32.0	)		60.9
Corporate expense		—			—			—			—			—			—			(97.7	)		(97.7	)
Merger and integration costs		—			—			—			—			—			—			(8.3	)		(8.3	)
Income/(loss) from operations*	$	687.3		$	290.3		$	292.9		$	110.0		$	158.9		$	79.4		$	(112.5	)	$	1,506.3

* Total Income from operations as reported on this schedule corresponds with the amounts reported for the respective periods on our CONSOLIDATED SUMMARY OF OPERATIONS. See our CONSOLIDATED SUMMARY OF OPERATIONS for the additional income and expenses recorded in the determination of Net income.

19

HARRAH’S ENTERTAINMENT, INC.

SUPPLEMENTAL INFORMATION

RECONCILIATION OF EBITDA TO ADJUSTED EBITDA

(UNAUDITED)

Adjusted EBITDA is defined as EBITDA further adjusted to exclude unusual items and other adjustments required or permitted in calculating covenant compliance under the indenture governing the senior notes and senior toggle notes, the interim loan agreement and/or our new senior credit facilities. We believe that the inclusion of supplementary adjustments to EBITDA applied in presenting Adjusted EBITDA are appropriate to provide additional information to investors about certain material non-cash items and about unusual items that we do not expect to continue at the same level in the future. Because not all companies use identical calculations, our presentation of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies.

The following table reconciles EBITDA and Adjusted EBITDA of Harrah’s Entertainment, Inc. for the Successor period for three months ended September 30, 2008.

(In millions)	Successor Three months ended September 30, 2008			Predecessor Three months ended September 30, 2007
(Loss)/income from continuing operations	$	(130.4	)	$	220.6
Interest expense, net		526.2			213.8
(Benefit)/provision for income taxes		(46.0	)		137.4
Depreciation and amortization		194.4			235.2
EBITDA		544.2			807.0
Project opening costs, abandoned projects and development costs (a)		17.1			6.3
Merger and integration costs (b)		1.0			0.7
Losses on early extinguishment of debt (c)		(7.4	)		2.0
Minority interests, net of distributions (d)		1.8			0.6
Non-cash expense for stock compensation benefits (e)		5.5			12.9
Income from insurance claims for hurricane losses (f)		0.2			(61.2	)
Other non-recurring or non-cash items (g)		71.5			17.4
Pro forma adjustment for acquired, new or disposed properties (h)		—			1.0
Adjusted EBITDA (1)	$	633.9		$	786.7

⁽¹⁾ Does not include the pro forma effect of yet-to-be realized cost savings.

a) Represents (i) project opening costs incurred in connection with the integration of acquired properties and with expansion and renovation projects at various properties, (ii) write-off of abandoned development projects and (iii) non-recurring strategic planning and restructuring costs.

b) Represents costs in connection with the Merger, including review of certain strategic matters by the special committee established by Harrah’s Entertainment’s Board of Directors, and costs for consultants and dedicated internal resources executing the plans for the integration of Caesars into Harrah’s.

c) Represents premiums paid and the write-off of historical unamortized deferred financing costs.

d) Represents minority owners’ share of income from our majority-owned subsidiaries, net of cash distributions to minority owners.

e) Represents non-cash compensation expense related to stock options.

f) Represents non-recurring insurance recoveries related to Hurricane Katrina.

g) Represents the elimination of other non-recurring and non-cash items such as litigation awards and settlements, severance and relocation costs, excess gaming taxes, gains and losses from disposal of assets, equity in non-consolidated subsidiaries (net of distributions) and one-time costs relating to new state gaming legislation.

h) Represents the full year/period estimated impact of acquired, new and disposed properties.

20

HARRAH’S ENTERTAINMENT, INC.

SUPPLEMENTAL INFORMATION

RECONCILIATION OF EBITDA TO ADJUSTED EBITDA

(UNAUDITED)

Adjusted EBITDA is defined as EBITDA further adjusted to exclude unusual items and other adjustments required or permitted in calculating covenant compliance under the indenture governing the senior notes and senior toggle notes, the interim loan agreement and/or our new senior credit facilities. We believe that the inclusion of supplementary adjustments to EBITDA applied in presenting Adjusted EBITDA are appropriate to provide additional information to investors about certain material non-cash items and about unusual items that we do not expect to continue at the same level in the future. Because not all companies use identical calculations, our presentation of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies.

The following table reconciles EBITDA and Adjusted EBITDA of Harrah’s Entertainment, Inc. for the Predecessor period from January 1, 2008 to January 27, 2008 and for the Successor period from January 28, 2008 to September 30, 2008.

	Predecessor									Successor			Combined
(In millions)	Dec. 31, 2007			Sept. 30,2007			Jan. 1, 2008 Through Jan. 27, 2008			Jan. 28, 2008 Through Sept. 30, 2008			Jan. 1, 2008 Through Sept. 30, 2008			LTM
Income/(loss) from continuing operations	$	527.2		$	583.3		$	(101.0	)	$	(402.6	)	$	(503.6	)	$	(559.7	)
Interest expense, net		780.8			572.7			89.7			1,451.2			1,540.9			1,749.0
Provision/(benefit) for income taxes		350.1			354.1			(26.0	)		(147.7	)		(173.7	)		(177.7	)
Depreciation and amortization		934.7			686.9			72.7			583.5			656.2			904.0
EBITDA		2,592.8			2,197.0			35.4			1,484.4			1,519.8			1,915.6
Project opening costs, abandoned projects and development costs (a)		29.8			25.3			0.9			28.7			29.6			34.1
Merger and integration costs (b)		13.4			8.3			125.6			23.1			148.7			153.8
Losses on early extinguishment of debt (c)		2.0			2.0			—			203.9			203.9			203.9
Minority interests, net of distributions (d)		(4.8	)		4.6			1.0			(3.6	)		(2.6	)		(12.0	)
Impairment of goodwill, intangible assets and investment securities (e)		169.6			—			—			—			—			169.6
Non-cash expense for stock compensation benefits (f)		53.0			39.4			2.4			12.3			14.7			28.3
Income from insurance claims for hurricane losses (g)		(130.3	)		(116.9	)		—			(185.5	)		(185.5	)		(198.9	)
Other non-recurring or non-cash items (h)		84.0			31.2			6.7			158.9			165.6			218.4
Pro forma adjustment for acquired, new or disposed properties (i)		3.3			3.8			—			—			—			(0.5	)
Pro forma adjustment for yet-to-be realized cost savings (j)		—			—			—			—			—			439.6
Adjusted EBITDA																$	2,951.9

a) Represents (i) project opening costs incurred in connection with the integration of acquired properties and with expansion and renovation projects at various properties, (ii) write-off of abandoned development projects and (iii) non-recurring strategic planning and restructuring costs.

b) Represents costs in connection with the Merger, including review of certain strategic matters by the special committee established by Harrah’s Entertainment’s Board of Directors, and costs for consultants and dedicated internal resources executing the plans for the integration of Caesars into Harrah’s.

c) Represents premiums paid and the write-off of historical unamortized deferred financing costs.

d) Represents minority owners’ share of income from our majority-owned subsidiaries, net of cash distributions to minority owners.

e) Represents impairment of intangible assets and impairment of investment securities.

f) Represents non-cash compensation expense related to stock options.

g) Represents non-recurring insurance recoveries related to Hurricane Katrina.

h) Represents the elimination of other non-recurring and non-cash items such as litigation awards and settlements, severance and relocation costs, excess gaming taxes, gains and losses from disposal of assets, equity in non-consolidated subsidiaries (net of distributions) and one-time costs relating to new state gaming legislation.

i) Represents the full year/period estimated impact of acquired, new and disposed properties.

j) Represents the cost savings yet-to-be realized from our profitability improvement programs.

21

HARRAH’S OPERATING COMPANY, A WHOLLY-OWNED SUBSIDIARY OF

HARRAH’S ENTERTAINMENT, INC.

SUPPLEMENTAL INFORMATION

RECONCILIATION OF PROPERTY EBITDA TO INCOME FROM OPERATIONS

(UNAUDITED)

	Successor
	Third Quarter Ended Sept. 30, 2008
(In millions)	Las Vegas Region			Atlantic City Region			Louisiana/ Mississippi Region			Iowa/ Missouri Region			Illinois Indiana Region			Other Nevada Region			Other			Total
Revenues	$	355.1		$	495.1		$	368.2		$	198.0		$	301.9		$	127.5		$	179.7		$	2,025.5
Property operating expenses		(258.6	)		(377.1	)		(294.4	)		(144.5	)		(247.6	)		(93.4	)		(145.5	)		(1,561.1	)
Property EBITDA		96.5			118.0			73.8			53.5			54.3			34.1			34.2			464.4
Depreciation and amortization		(17.5	)		(27.8	)		(16.4	)		(11.6	)		(18.5	)		(6.3	)		(16.0	)		(114.1	)
Operating profit		79.0			90.2			57.4			41.9			35.8			27.8			18.2			350.3
Amortization of intangible assets		(8.1	)		(1.7	)		(4.0	)		—			(0.2	)		(0.4	)		(12.2	)		(26.6	)
Income/(losses) on interests in non-consolidated affiliates		—			—			0.2			—			—			—			(2.6	)		(2.4	)
Project opening costs and other items		(4.1	)		(0.4	)		(4.4	)		(0.1	)		(14.1	)		—			(20.1	)		(43.2	)
Corporate expense		—			—			—			—			—			—			(18.3	)		(18.3	)
Merger and integration costs		—			—			—			—			—			—			(1.0	)		(1.0	)
Income/(loss) from operations*	$	66.8		$	88.1		$	49.2		$	41.8		$	21.5		$	27.4		$	(36.0	)	$	258.8
	Predecessor
	Third Quarter Ended Sept. 30, 2007
	Las Vegas Region			Atlantic City Region			Louisiana/ Mississippi Region			Iowa/ Missouri Region			Illinois/ Indiana Region			Other Nevada Region			Other			Total
Revenues	$	402.1		$	529.6		$	391.6		$	206.8		$	328.5		$	130.9		$	164.1		$	2,153.6
Property operating expenses		(278.8	)		(375.3	)		(298.8	)		(147.1	)		(258.8	)		(95.4	)		(114.9	)		(1,569.1	)
Property EBITDA		123.3			154.3			92.8			59.7			69.7			35.5			49.2			584.5
Depreciation and amortization		(24.8	)		(40.5	)		(25.8	)		(18.1	)		(14.6	)		(10.2	)		(20.5	)		(154.5	)
Operating profit		98.5			113.8			67.0			41.6			55.1			25.3			28.7			430.0
Amortization of intangible assets		(3.3	)		(6.4	)		(2.0	)		(0.7	)		(2.0	)		(0.2	)		(3.0	)		(17.6	)
Losses on interests in non-consolidated affiliates		—			—			—			—			—			—			(0.1	)		(0.1	)
Project opening costs and other items		0.9			(0.6	)		58.7			(1.2	)		4.6			(0.1	)		(11.6	)		50.7
Corporate expense		—			—			—			—			—			—			(27.9	)		(27.9	)
Merger and integration costs		—			—			—			—			—			—			(0.7	)		(0.7	)
Income/(loss) from operations*	$	96.1		$	106.8		$	123.7		$	39.7		$	57.7		$	25.0		$	(14.6	)	$	434.4

* Total Income from operations as reported on this schedule corresponds with the amounts reported for the respective periods on our CONSOLIDATED SUMMARY OF OPERATIONS. See our CONSOLIDATED SUMMARY OF OPERATIONS for the additional income and expenses recorded in the determination of Net income.

22

HARRAH’S OPERATING COMPANY, A WHOLLY OWNED SUBSIDIARY OF

HARRAH’S ENTERTAINMENT, INC.

SUPPLEMENTAL INFORMATION

RECONCILIATION OF PROPERTY EBITDA TO INCOME FROM OPERATIONS

(UNAUDITED)

	Successor
	Jan. 28, 2008 Through Sept. 30, 2008
(In millions)	Las Vegas Region			Atlantic City Region			Louisiana/ Mississippi Region			Iowa/ Missouri Region			Illinois/ Indiana Region			Other Nevada Region			Other			Total
Revenues	$	996.5		$	1,276.0		$	1,010.8		$	537.3		$	804.5		$	299.8		$	440.0		$	5,364.9
Property operating expenses		(708.0	)		(988.9	)		(792.9	)		(389.3	)		(653.8	)		(239.5	)		(348.2	)		(4,120.6	)
Property EBITDA		288.5			287.1			217.9			148.0			150.7			60.3			91.8			1,244.3
Depreciation and amortization		(53.7	)		(92.2	)		(53.8	)		(34.9	)		(40.0	)		(18.4	)		(47.4	)		(340.4	)
Operating profit		234.8			194.9			164.1			113.1			110.7			41.9			44.4			903.9
Amortization of intangible assets		(21.5	)		(7.2	)		(14.7	)		—			(0.9	)		(1.4	)		(33.7	)		(79.4	)
Income on interests in non-consolidated affiliates		—			—			0.2			—			—			—			(1.4	)		(1.2	)
Project opening costs and other items		(6.2	)		(3.2	)		178.3			(0.3	)		(18.5	)		—			(66.2	)		83.9
Corporate expense		—			—			—			—			—			—			(88.5	)		(88.5	)
Merger and integration costs		—			—			—			—			—			—			(23.1	)		(23.1	)
Income/(loss) from operations*	$	207.1		$	184.5		$	327.9		$	112.8		$	91.3		$	40.5		$	(168.5	)	$	795.6
	Predecessor
	Jan. 1, 2008 Through Jan. 27, 2008
	Las Vegas Region			Atlantic City Region			Louisiana/ Mississippi Region			Iowa/ Missouri Region			Illinois/ Indiana Region			Other Nevada Region			Other			Total
Revenues	$	118.5		$	125.8		$	106.1		$	55.8		$	85.5		$	26.8		$	59.0		$	577.5
Property operating expenses		(80.4	)		(103.9	)		(87.5	)		(42.8	)		(71.9	)		(25.6	)		(55.8	)		(467.9	)
Property EBITDA		38.1			21.9			18.6			13.0			13.6			1.2			3.2			109.6
Depreciation and amortization		(7.4	)		(11.9	)		(8.6	)		(5.1	)		(4.3	)		(3.0	)		(7.2	)		(47.5	)
Operating profit		30.7			10.0			10.0			7.9			9.3			(1.8	)		(4.0	)		62.1
Amortization of intangible assets		(1.0	)		(1.9	)		(0.5	)		(0.2	)		(0.6	)		(0.1	)		(1.2	)		(5.5	)
Income on interests in non-consolidated affiliates		—			—			—			—			—			—			0.5			0.5
Project opening costs and other items		—			(0.1	)		0.6			—			—			—			(1.4	)		(0.9	)
Corporate expense		—			—			—			—			—			—			26.2			26.2
Merger and integration costs		—			—			—			—			—			—			(125.6	)		(125.6	)
Income/(loss) from operations*	$	29.7		$	8.0		$	10.1		$	7.7		$	8.7		$	(1.9	)	$	(105.5	)	$	(43.2	)

* Total Income from operations as reported on this schedule corresponds with the amounts reported for the respective periods on our CONSOLIDATED SUMMARY OF OPERATIONS. See our CONSOLIDATED SUMMARY OF OPERATIONS for the additional income and expenses recorded in the determination of Net income and Earnings per share for the periods presented.

23

HARRAH’S OPERATING COMPANY, A WHOLLY-OWNED SUBSIDIARY OF

HARRAH’S ENTERTAINMENT, INC.

SUPPLEMENTAL INFORMATION

RECONCILIATION OF PROPERTY EBITDA TO INCOME FROM OPERATIONS

(UNAUDITED)

	Combined
	Nine Months Ended Sept. 30, 2008
(In millions)	Las Vegas Region			Atlantic City Region			Louisiana/ Mississippi Region			Iowa/ Missouri Region			Illinois/ Indiana Region			Other Nevada Region			Other			Total
Revenues	$	1,115.0		$	1,401.8		$	1,116.9		$	593.1		$	890.0		$	326.6		$	499.0		$	5,942.4
Property operating expenses		(788.4	)		(1,092.8	)		(880.4	)		(432.1	)		(725.7	)		(265.1	)		(404.0	)		(4,588.5	)
Property EBITDA		326.6			309.0			236.5			161.0			164.3			61.5			95.0			1,353.9
Depreciation and amortization		(61.1	)		(104.1	)		(62.4	)		(40.0	)		(44.3	)		(21.4	)		(54.6	)		(387.9	)
Operating profit		265.5			204.9			174.1			121.0			120.0			40.1			40.4			966.0
Amortization of intangible assets		(22.5	)		(9.1	)		(15.2	)		(0.2	)		(1.5	)		(1.5	)		(34.9	)		(84.9	)
Income on interests in non-consolidated affiliates		—			—			0.2			—			—			—			(0.9	)		(0.7	)
Project opening costs and other Items		(6.2	)		(3.3	)		178.9			(0.3	)		(18.5	)		—			(67.6	)		83.0
Corporate expense		—			—			—			—			—			—			(62.3	)		(62.3	)
Merger and integration costs		—			—			—			—			—			—			(148.7	)		(148.7	)
Income/(loss) from operations*	$	236.8		$	192.5		$	338.0		$	120.5		$	100.0		$	38.6		$	(274.0	)	$	752.4
	Predecessor
	Nine Months Ended Sept. 30, 2007
	Las Vegas Region			Atlantic City Region			Louisiana/ Mississippi Region			Iowa/ Missouri Region			Illinois/ Indiana Region			Other Nevada Region			Other			Total
Revenues	$	1,207.9		$	1,430.0		$	1,171.1		$	613.8		$	974.7		$	347.2		$	419.6		$	6,164.3
Property operating expenses		(812.5	)		(1,064.6	)		(905.3	)		(444.3	)		(770.6	)		(273.6	)		(296.1	)		(4,567.0	)
Property EBITDA		395.4			365.4			265.8			169.5			204.1			73.6			123.5			1,597.3
Depreciation and amortization		(73.8	)		(117.9	)		(75.3	)		(55.3	)		(42.6	)		(28.8	)		(56.3	)		(450.0	)
Operating profit		321.6			247.5			190.5			114.2			161.5			44.8			67.2			1,147.3
Amortization of intangible assets		(10.0	)		(19.3	)		(6.1	)		(2.4	)		(5.9	)		(0.5	)		(8.9	)		(53.1	)
Income on interests in non-consolidated affiliates		—			—			—			—			—			—			3.6			3.6
Project opening costs and other Items		(4.8	)		(6.1	)		108.5			(1.8	)		3.3			(0.5	)		(31.1	)		67.5
Corporate expense		—			—			—			—			—			—			(68.9	)		(68.9	)
Merger and integration costs		—			—			—			—			—			—			(8.3	)		(8.3	)
Income/(loss) from operations*	$	306.8		$	222.1		$	292.9		$	110.0		$	158.9		$	43.8		$	(46.4	)	$	1,088.1

* Total Income from operations as reported on this schedule corresponds with the amounts reported for the respective periods on our CONSOLIDATED SUMMARY OF OPERATIONS. See our CONSOLIDATED SUMMARY OF OPERATIONS for the additional income and expenses recorded in the determination of Net income and Earnings per share for the periods presented.

24

HARRAH’S OPERATING COMPANY, A WHOLLY-OWNED SUBSIDIARY OF

HARRAH’S ENTERTAINMENT, INC.

SUPPLEMENTAL INFORMATION

CALCULATION OF ADJUSTED EBITDA

(UNAUDITED)

Adjusted EBITDA is defined as EBITDA further adjusted to exclude unusual items and other adjustments required or permitted in calculating covenant compliance under the indenture governing the senior notes and senior toggle notes, the interim loan agreement and/or our new senior credit facilities. We believe that the inclusion of supplementary adjustments to EBITDA applied in presenting Adjusted EBITDA are appropriate to provide additional information to investors about certain material non-cash items and about unusual items that we do not expect to continue at the same level in the future. Because not all companies use identical calculations, our presentation of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies.

In connection with the acquisition of the Company by affiliates of Apollo Global Management, LLC and TPG Capital, LP, eight of our properties and their related operating assets were spun off from Harrah’s Operating Company to Harrah’s Entertainment through a series of distributions, liquidations, transfers and contributions, collectively referred to as “the CMBS Spin-Off.” The eight properties, as of the closing, are Harrah’s Las Vegas, Rio, Flamingo Las Vegas, Harrah’s Atlantic City, Showboat Atlantic City, Harrah’s Lake Tahoe, Harveys Lake Tahoe and Bill’s Lake Tahoe. Subsequent to the closing and subject to regulatory approval, Paris Las Vegas and Harrah’s Laughlin and their related operating assets will be spun off from Harrah’s Operating Company and its subsidiaries to Harrah’s Entertainment, and Harrah’s Lake Tahoe, Harveys Lake Tahoe, Bill’s Lake Tahoe and Showboat Atlantic City and their related operating assets will be transferred to subsidiaries of Harrah’s Operating Company from Harrah’s Entertainment (the “Post-Close CMBS Exchange”). The properties spun off from Harrah’s Operating Company and owned by Harrah’s Entertainment, whether at closing or after the subsequent transfer, will collectively be referred to as “the CMBS properties.” Also in connection with the acquisition by affiliates of Apollo and TPG, London Clubs International Limited (“London Clubs”) and its subsidiaries, with the exception of the subsidiaries related to the South Africa operations, became subsidiaries of Harrah’s Operating Company (“the London Clubs Transfer”). London Clubs and its subsidiaries were previously subsidiaries of Harrah Entertainment.

The following table reconciles EBITDA and Adjusted EBITDA of Harrah’s Operating for the Predecessor period from January 1, 2008 to January 27, 2008 and for the Successor period from January 28, 2008 to September 30, 2008 and takes into consideration the CMBS Spin-Off, the London Clubs Transfer and the Post-Close CMBS exchange:

25

HARRAH’S OPERATING COMPANY, A WHOLLY-OWNED SUBSIDIARY OF

HARRAH’S ENTERTAINMENT, INC.

SUPPLEMENTAL INFORMATION

RECONCILIATION OF EBITDA TO ADJUSTED EBITDA

(UNAUDITED)

(In millions)	Successor Three months ended September 30, 2008			Predecessor Three months ended September 30, 2007
Income/(loss) from continuing operations	$	(120.4	)	$	134.2
Interest expense, net		430.5			213.0
Provision/(benefit) for income taxes		(49.6	)		82.8
Depreciation and amortization		144.3			182.8
EBITDA		404.8			612.8
Project opening costs, abandoned projects and development costs (a)		16.6			5.9
Merger and integration costs (b)		1.0			0.5
Losses on early extinguishment of debt (c)		(7.4	)		2.0
Minority interests, net of distributions (d)		1.8			0.4
Non-cash expense for stock compensation benefits (e)		4.1			9.0
Income from insurance claims for hurricane losses (f)		0.2			(61.2	)
Other non-recurring or non-cash items (g)		33.3			14.5
Pro forma adjustment for acquired, new or disposed properties (h)		—			1.0
Adjusted EBITDA (1)	$	454.4		$	584.9

⁽¹⁾ Does not include the pro forma effect of yet-to-be realized cost savings.

a) Represents (i) project opening costs incurred in connection with the integration of acquired properties and with expansion and renovation projects at various properties, (ii) write-off of abandoned development projects and (iii) non-recurring strategic planning and restructuring costs.

b) Represents costs in connection with the Acquisition, including review of certain strategic matters by the special committee established by Harrah’s Entertainment’s Board of Directors, and costs for consultants and dedicated internal resources executing the plans for the integration of Caesars into Harrah’s.

c) Represents premiums paid and the write-off of historical unamortized deferred financing costs.

d) Represents minority owners’ share of income from our majority-owned subsidiaries, net of cash distributions to minority owners.

e) Represents non-cash compensation expense related to stock options.

f) Represents non-recurring insurance recoveries related to Hurricane Katrina.

g) Represents the elimination of other non-recurring and non-cash items such as litigation awards and settlements, severance and relocation costs, excess gaming taxes, gains and losses from disposal of assets, equity in non-consolidated subsidiaries (net of distributions) and one-time costs relating to new state gaming legislation.

h) Represents the full year/period estimated impact of acquired, new and disposed properties.

The following tables present the condensed combined statement of operations of Harrah’s Operating Company, Inc. for the Predecessor period from January 1, 2008 to January 27, 2008 and for the Successor period from January 28, 2008 to September 30, 2008, taking into consideration the CMBS Spin-Off, the London Clubs Transfer and the Post-Close CMBS Transactions:

26

HARRAH’S OPERATING COMPANY, A WHOLLY-OWNED SUBSIDIARY OF

HARRAH’S ENTERTAINMENT, INC.

SUPPLEMENTAL INFORMATION

RECONCILIATION OF EBITDA TO ADJUSTED EBITDA

(UNAUDITED)

	Predecessor									Successor			Combined
(In millions)	Dec. 31, 2007			Sept. 30, 2007			Jan. 1, 2008 Through Jan. 27, 2008			Jan. 28, 2008 Through Sept. 30, 2008			Jan. 1, 2008 Through Sept. 30, 2008			LTM
Income/(loss) from continuing operations	$	166.8		$	330.6		$	(107.6	)	$	(415.9	)	$	(523.5	)	$	(687.3	)
Interest expense, net		787.5			570.1			85.7			1,193.2			1,278.9			1,496.3
Provision/(benefit) for income taxes		152.6			195.3			(21.6	)		(186.7	)		(208.3	)		(251.0	)
Depreciation and amortization		729.4			535.1			56.7			431.7			491.3			682.7
EBITDA		1,836.3			1,631.1			13.2			1,022.3			1,038.4			1,240.7
Project opening costs, abandoned projects and development costs (a)		26.8			22.3			0.9			27.1			28.0			32.5
Merger and integration costs (b)		9.4			5.8			125.6			23.1			148.7			152.3
Losses on early extinguishment of debt (c)		2.0			2.0			—			203.9			203.9			203.9
Minority interests, net of distributions (d)		(3.7	)		5.3			0.8			(3.9	)		(3.1	)		(12.1	)
Impairment of goodwill, intangible assets and investment securities (e)		155.9			—			—			—			—			155.9
Non-cash expense for stock compensation benefits (f)		38.2			28.1			1.7			9.2			10.9			21.0
Income from insurance claims for hurricane losses (g)		(130.3	)		(116.9	)		—			(185.5	)		(185.5	)		(198.9	)
Other non-recurring or non-cash items (h)		55.6			23.9			0.8			83.7			81.5			116.2
Pro forma adjustment for acquired, new or disposed properties (i)		3.3			3.8			—			—			—			(0.5	)
Pro forma adjustment for yet-to-be realized cost savings (j)																	321.3
Adjusted EBITDA																$	2,032.3

a) Represents (i) project opening costs incurred in connection with the integration of acquired properties and with expansion and renovation projects at various properties, (ii) write-off of abandoned development projects and (iii) non-recurring strategic planning and restructuring costs.

b) Represents costs in connection with the Acquisition, including review of certain strategic matters by the special committee established by Harrah’s Entertainment’s Board of Directors, and costs for consultants and dedicated internal resources executing the plans for the integration of Caesars into Harrah’s.

c) Represents premiums paid and the write-off of historical unamortized deferred financing costs.

d) Represents minority owners’ share of income from our majority-owned subsidiaries, net of cash distributions to minority owners.

e) Represents impairment of intangible assets and impairment of investment securities.

f) Represents non-cash compensation expense related to stock options.

g) Represents non-recurring insurance recoveries related to Hurricane Katrina.

h) Represents the elimination of other non-recurring and non-cash items such as litigation awards and settlements, severance and relocation costs, excess gaming taxes, gains and losses from disposal of assets, equity in non-consolidated subsidiaries (net of distributions) and one-time costs relating to new state gaming legislation.

i) Represents the full year/period estimated impact of acquired, new and disposed properties.

j) Represents the cost savings yet-to-be realized from our profitability improvement programs.

The following tables present the condensed combined statement of operations of Harrah’s Operating Company, Inc. for the Predecessor period from January 1, 2008 to January 27, 2008 and for the Successor period from January 28, 2008 to September 30, 2008, taking into consideration the CMBS Spin-Off, the London Clubs Transfer and the Post-Close CMBS Transactions:

27

Unaudited Condensed Combined Statement of Operations

Harrah’s Operating Company, Inc. (Successor)

For the Three Months Ended Sept. 30, 2008

	Harrah’s Entertainment (1)			HET Parent and Other Harrah’s Entertainment Subsidiaries and Accounts (2)			Harrah’s Operating (3)
Revenues
Casino	$	2,130.1		$	(424.2	)	$	1,705.9
Food and beverage		427.6			(152.8	)		274.8
Rooms		316.7			(128.8	)		187.9
Management fees		16.6			—			16.6
Other		181.9			(31.7	)		150.2
Less: casino promotional allowances		(427.0	)		117.1			(309.9	)
Net revenues		2,645.9			(620.4	)		2,025.5
Operating expenses
Direct
Casino		1,129.4			(203.2	)		926.2
Food and beverage		178.1			(73.7	)		104.4
Rooms		64.9			(29.6	)		35.3
Property general, administrative and other		631.8			(136.6	)		495.2
Depreciation and amortization		152.0			(37.9	)		114.1
Write-downs, reserves and recoveries		46.8			(19.6	)		27.2
Project opening costs		16.3			(0.3	)		16.0
Corporate expense		34.7			(16.4	)		18.3
Merger and integration costs		1.0			—			1.0
Equity in losses of non-consolidated affiliates		2.5			(0.1	)		2.4
Amortization of intangible assets		38.8			(12.2	)		26.6
Total operating expenses		2,296.3			(529.6	)		1,766.7
Income from operations		349.6			(90.8	)		258.8
Interest expense, net of interest capitalized		(533.4	)		98.9			(434.5	)
Gains on early extinguishment of debt		7.4			—			7.4
Other income, including interest income		7.2			(3.2	)		4.0
Loss before income taxes and minority interests		(169.2	)		4.9			(164.3	)
Income tax benefit		46.0			3.6			49.6
Minority interests		(7.2	)		1.5			(5.7	)
Loss from continuing operations	$	(130.4	)	$	10.0		$	(120.4	)

(1) Represents the financial information of Harrah’s Entertainment.

(2) Represents the financial information of (i) all subsidiaries of Harrah’s Entertainment that are not a component of HOC, namely, captive insurance companies and the CMBS properties, pursuant to the CMBS Spin-Off; and (ii) accounts at Harrah’s Entertainment.

(3) Represents the financial information of HOC.

28

Unaudited Condensed Combined Statement of Operations

Harrah’s Operating Company, Inc. (Predecessor)

For the Three Months Ended Sept. 30, 2007

	Harrah’s Entertainment(1)			HET Parent and Other Harrah’s Entertainment Subsidiaries and Accounts(2)			Historical HOC(3)			CMBS Spin -Off(4)			London Clubs Transfer(5)			HOC Restructured
Revenues
Casino	$	2,333.6		$	(90.2	)	$	2,243.4		$	(451.4	)	$	90.2		$	1,882.2
Food and beverage		445.1			(13.3	)		431.8			(160.5	)		13.3			284.6
Rooms		341.6			(0.7	)		340.9			(139.2	)		0.7			202.4
Management fees		20.5			(0.1	)		20.4			—			0.1			20.5
Other		184.8			(3.5	)		181.3			(65.0	)		2.4			118.7
Less: casino promotional allowances		(485.3	)		5.5			(479.8	)		130.5			(5.5	)		(354.8	)
Net revenues		2,840.3			(102.3	)		2,738.0			(685.6	)		101.2			2,153.6
Operating expenses
Direct
Casino		1,195.9			(66.2	)		1,129.7			(208.6	)		66.2			987.3
Food and beverage		194.3			(11.9	)		182.4			(77.9	)		11.9			116.4
Rooms		67.0			(0.3	)		66.7			(29.4	)		0.3			37.6
Property general, administrative and other		592.7			(25.7	)		567.0			(153.8	)		14.6			427.8
Depreciation and amortization		206.8			(3.1	)		203.7			(52.3	)		3.1			154.5
Write-downs, reserves and recoveries		(54.5	)		—			(54.5	)		(1.0	)		—			(55.5	)
Project opening costs		4.8			(4.6	)		0.2			—			4.6			4.8
Corporate expense		37.6			—			37.6			(9.7	)		—			27.9
Merger and integration costs		0.7			—			0.7			—			—			0.7
Equity in income of non-consolidated affiliates		0.1			(0.9	)		(0.8	)		—			0.9			0.1
Amortization of intangible assets		17.7			—			17.7			(0.1	)		—			17.6
Total operating expenses		2,263.1			(112.7	)		2,150.4			(532.8	)		101.6			1,719.2
Income/(loss) from operations		577.2			10.4			587.6			(152.8	)		(0.4	)		434.4
Interest expense, net of interest capitalized		(216.1	)		3.9			(212.2	)		—			(3.9	)		(216.1	)
Losses on early extinguishment of debt		(2.0	)		2.0			—			—			(2.0	)		(2.0	)
Other income, including interest income		4.9			(0.4	)		4.5			0.4			0.4			5.3
Income/(loss) before income taxes and minority interests		364.0			15.9			379.9			(152.4	)		(5.9	)		221.6
Income tax (provision)/benefit		(137.4	)		(3.2	)		(140.6	)		54.1			3.7			(82.8	)
Minority interests		(6.0	)		1.5			(4.5	)		1.4			(1.5	)		(4.6	)
Income/(loss) from continuing operations	$	220.6		$	14.2		$	234.8		$	(96.9	)	$	(3.7	)	$	134.2

(1) Represents the financial information of Harrah’s Entertainment.

(2) Represents the financial information of (i) all subsidiaries of Harrah’s Entertainment that are not a component of HOC, namely, captive insurance companies and London Clubs and its subsidiaries; and (ii) accounts at Harrah’s Entertainment.

(3) Represents the historical financial information of HOC.

(4) Reflects the removal of the operating results of the CMBS properties, pursuant to the CMBS Transaction in which certain properties and operations of HOC were spun-off into a separate borrowing structure and held side-by-side with HOC under Harrah’s Entertainment. The historical operating expenses of HOC include unallocated costs attributable to services that have been performed by HOC on behalf of the CMBS properties. These costs are primarily related to corporate functions such as accounting, tax, treasury, payroll and benefits administration, risk management, legal, and information management and technology. The CMBS spin-off reflects the push-down of corporate expense of $9.7 million that was unallocated at September 30, 2007. Following the Merger, many of these services will continue to be provided by HOC pursuant to a shared services agreement with the CMBS properties.

(5) Reflects the inclusion of the London Clubs operating results pursuant to the London Clubs Transfer, in which London Clubs and its subsidiaries became subsidiaries of HOC.

29

Unaudited Condensed Combined Statement of Operations

Harrah’s Operating Company, Inc. (Successor)

For the Period from Jan. 28, 2008

Through Sept. 30, 2008

	Harrah’s Entertainment (1)			HET Parent and Other Harrah’s Entertainment Subsidiaries and Accounts (2)			Harrah’s Operating (3)
Revenues
Casino	$	5,653.2		$	(1,152.1	)	$	4,501.1
Food and beverage		1,160.2			(426.8	)		733.4
Rooms		894.2			(375.4	)		518.8
Management fees		45.8			—			45.8
Other		462.4			(82.4	)		380.0
Less: casino promotional allowances		(1,127.3	)		313.1			(814.2	)
Net revenues		7,088.5			(1,723.6	)		5,364.9
Operating expenses
Direct
Casino		3,037.1			(542.8	)		2,494.3
Food and beverage		486.1			(203.9	)		282.2
Rooms		179.4			(81.7	)		97.7
Property general, administrative and other		1,619.0			(372.6	)		1,246.4
Depreciation and amortization		452.4			(112.0	)		340.4
Write-downs, reserves and recoveries		(61.8	)		(47.1	)		(108.9	)
Project opening costs		26.3			(1.3	)		25.0
Corporate expense		95.9			(7.4	)		88.5
Merger and integration costs		23.1			—			23.1
Equity in losses of non-consolidated affiliates		1.3			(0.1	)		1.2
Amortization of intangible assets		119.2			(39.8	)		79.4
Total operating expenses		5,978.0			(1,408.7	)		4,569.3
Income from operations		1,110.5			(314.9	)		795.6
Interest expense, net of interest capitalized		(1,469.4	)		261.2			(1,208.2	)
Losses on early extinguishment of debt		(203.9	)		—			(203.9	)
Other income, including interest income		18.7			(3.2	)		15.5
(Loss)/income before income taxes and minority interests		(544.1	)		(56.9	)		(601.0	)
Income tax benefit/(provision)		147.7			39.0			186.7
Minority interests		(6.2	)		4.6			(1.6	)
(Loss)/income from continuing operations	$	(402.6	)	$	(13.3	)	$	(415.9	)

(1) Represents the financial information of Harrah’s Entertainment.

(2) Represents the financial information of (i) all subsidiaries of Harrah’s Entertainment that are not a component of HOC, namely, captive insurance companies and the CMBS properties, pursuant to the CMBS Spin-Off; and (ii) accounts at Harrah’s Entertainment.

(3) Represents the financial information of HOC.

30

Unaudited Condensed Combined Statement of Operations

Harrah’s Operating Company, Inc. (Predecessor)

For the Period from Jan. 1, 2008

Through Jan. 27, 2008

	Harrah’s Entertainment(1)			HET Parent and Other Harrah’s Entertainment Subsidiaries and Accounts(2)			Historical HOC(3)			CMBS Spin-Off(4)			London Clubs Transfer(5)			HOC Restructured
Revenues
Casino	$	614.6		$	(29.5	)	$	585.1		$	(116.4	)	$	29.5		$	498.2
Food and beverage		118.4			(4.7	)		113.7			(41.1	)		4.7			77.3
Rooms		96.4			(0.4	)		96.0			(40.4	)		0.4			56.0
Management fees		5.0			(0.1	)		4.9			—			0.1			5.0
Other		42.7			(1.4	)		41.3			(14.4	)		1.1			28.0
Less: casino promotional allowances		(117.0	)		1.8			(115.2	)		30.0			(1.8	)		(87.0	)
Net revenues		760.1			(34.3	)		725.8			(182.3	)		34.0			577.5
Operating expenses
Direct
Casino		340.6			(24.5	)		316.1			(55.4	)		24.5			285.2
Food and beverage		50.5			(1.8	)		48.7			(20.2	)		1.8			30.3
Rooms		19.6			(0.2	)		19.4			(8.9	)		0.2			10.7
Property general, administrative and other		178.2			(2.0	)		176.2			(42.0	)		7.5			141.7
Depreciation and amortization		63.5			(1.6	)		61.9			(16.0	)		1.6			47.5
Write-downs, reserves and recoveries		4.7			—			4.7			(4.5	)		—			0.2
Project opening costs		0.7			(0.7	)		—			—			0.7			0.7
Corporate expense		8.5			—			8.5			(34.7	)		—			(26.2	)
Merger and integration costs		125.6			—			125.6			—			—			125.6
Equity in income of non-consolidated affiliates		(0.5	)		—			(0.5	)		—			—			(0.5	)
Amortization of intangible assets		5.5			(0.2	)		5.3			—			0.2			5.5
Total operating expenses		796.9			(31.0	)		765.9			(181.7	)		36.5			620.7
(Loss)/income from operations		(36.8	)		(3.3	)		(40.1	)		(0.6	)		(2.5	)		(43.2	)
Interest expense, net of interest capitalized		(89.7	)		—			(89.7	)		—			—			(89.7	)
Losses on early extinguishment of debt		—			—			—			—			—			—
Other income, including interest income		1.1			(3.3	)		(2.2	)		4.0			3.3			5.1
(Loss)/income before income taxes and minority interests		(125.4	)		(6.6	)		(132.0	)		3.4			0.8			(127.8	)
Income tax benefit/(provision)		26.0			(4.1	)		21.9			(1.2	)		0.9			21.6
Minority interests		(1.6	)		0.9			(0.7	)		0.2			(0.9	)		(1.4	)
(Loss)/income from continuing operations	$	(101.0	)	$	(9.8	)	$	(110.8	)	$	2.4		$	0.8		$	(107.6	)

(1) Represents the financial information of Harrah’s Entertainment.

(2) Represents the financial information of (i) all subsidiaries of Harrah’s Entertainment that are not a component of HOC, namely, captive insurance companies and London Clubs and its subsidiaries; and (ii) accounts at Harrah’s Entertainment.

(3) Represents the historical financial information of HOC.

(4) Reflects the removal of the operating results of the CMBS properties, pursuant to the CMBS Transaction in which certain properties and operations of HOC were spun-off into a separate borrowing structure and held side-by-side with HOC under Harrah’s Entertainment. The historical operating expenses of HOC include unallocated costs attributable to services that have been performed by HOC on behalf of the CMBS properties. These costs are primarily related to corporate functions such as accounting, tax, treasury, payroll and benefits administration, risk management, legal, and information management and technology. The CMBS spin-off reflects the push-down of corporate expense of $34.7 million that was unallocated at January 27, 2008. Following the Merger, many of these services will continue to be provided by HOC pursuant to a shared services agreement with the CMBS properties.

(5) Reflects the inclusion of the London Clubs operating results pursuant to the London Clubs Transfer, in which London Clubs and its subsidiaries became subsidiaries of HOC.

31

Unaudited Condensed Combined Statement of Operations

Harrah’s Operating Company, Inc. (Predecessor)

For the Nine Months Ended Sept. 30, 2007

	Harrah’s Entertainment(1)			HET Parent and Other Harrah’s Entertainment Subsidiaries and Accounts(2)			Historical HOC(3)			CMBS Spin-Off(4)			London Clubs Transfer(5)			HOC Restructured
Revenues
Casino	$	6,686.7		$	(199.6	)	$	6,487.1		$	(1,315.8	)	$	199.6		$	5,370.9
Food and beverage		1,299.1			(25.5	)		1,273.6			(476.4	)		25.5			822.7
Rooms		1,035.9			(1.9	)		1,034.0			(431.3	)		1.9			604.6
Management fees		64.2			(0.4	)		63.8			—			0.4			64.2
Other		525.1			(7.4	)		517.7			(182.6	)		4.9			340.0
Less: casino promotional allowances		(1,413.3	)		10.4			(1,402.9	)		375.2			(10.4	)		(1,038.1	)
Net revenues		8,197.7			(224.4	)		7,973.3			(2,030.9	)		221.9			6,164.3
Operating expenses
Direct
Casino		3,444.8			(152.2	)		3,292.6			(608.2	)		152.2			2,836.6
Food and beverage		553.7			(20.3	)		533.4			(231.1	)		20.3			322.6
Rooms		201.1			(0.9	)		200.2			(90.2	)		0.9			110.9
Property general, administrative and other		1,795.4			(72.2	)		1,723.2			(459.0	)		32.7			1,296.9
Depreciation and amortization		601.4			(7.8	)		593.6			(151.4	)		7.8			450.0
Write-downs, reserves and recoveries		(83.0	)		—			(83.0	)		(4.5	)		—			(87.5	)
Project opening costs		22.1			(13.5	)		8.6			(2.1	)		13.5			20.0
Corporate expense		97.7			(0.1	)		97.6			(28.7	)		—			68.9
Merger and integration costs		8.3			—			8.3			—			—			8.3
Equity in income of non-consolidated affiliates		(3.6	)		0.5			(3.1	)		—			(0.5	)		(3.6	)
Amortization of intangible assets		53.5			—			53.5			(0.4	)		—			53.1
Total operating expenses		6,691.4			(266.5	)		6,424.9			(1,575.6	)		226.9			5,076.2
Income/(loss) from operations		1,506.3			42.1			1,548.4			(455.3	)		(5.0	)		1,088.1
Interest expense, net of interest capitalized		(578.4	)		9.0			(569.4	)		—			(9.0	)		(578.4	)
Losses on early extinguishment of debt		(2.0	)		2.0			—			—			(2.0	)		(2.0	)
Other income, including interest income		28.7			(0.7	)		28.0			1.8			0.8			30.6
Income/(loss) before income taxes and minority interests		954.6			52.4			1,007.0			(453.5	)		(15.2	)		538.3
Income tax (provision)/benefit		(354.1	)		(1.7	)		(355.8	)		158.1			2.4			(195.3	)
Minority interests		(17.2	)		1.5			(15.7	)		4.8			(1.5	)		(12.4	)
Income/(loss) from continuing operations	$	583.3		$	52.2		$	635.5		$	(290.6	)	$	(14.3	)	$	330.6

(1) Represents the financial information of Harrah’s Entertainment.

(2) Represents the financial information of (i) all subsidiaries of Harrah’s Entertainment that are not a component of HOC, namely, captive insurance companies and London Clubs and its subsidiaries; and (ii) accounts at Harrah’s Entertainment.

(3) Represents the historical financial information of HOC.

(4) Reflects the removal of the operating results of the CMBS properties, pursuant to the CMBS Transaction in which certain properties and operations of HOC were spun-off into a separate borrowing structure and held side-by-side with HOC under Harrah’s Entertainment. The historical operating expenses of HOC include unallocated costs attributable to services that have been performed by HOC on behalf of the CMBS properties. These costs are primarily related to corporate functions such as accounting, tax, treasury, payroll and benefits administration, risk management, legal, and information management and technology. The CMBS spin-off reflects the push-down of corporate expense of $28.7 million that was unallocated at September 30, 2007. Following the Merger, many of these services will continue to be provided by HOC pursuant to a shared services agreement with the CMBS properties.

(5) Reflects the inclusion of the London Clubs operating results pursuant to the London Clubs Transfer, in which London Clubs and its subsidiaries became subsidiaries of HOC.

32