Harrah’s to build Vegas arena to house NBA, NHL team

Harrah’s
Entertainment, Inc. and AEG unveiled plans for of an approximately 20,000-seat,
privately financed, state-of-the-art arena. This arena is envisioned to be

Las Vegas’ new home for
the most popular and important sports and entertainment events. The site of the
venue will be one block east of the world famous Las Vegas Strip on
approximately 10 acres of land that is part of the current Harrah’s land
holdings.

As
managing partner, AEG will be responsible for developing, operating and
programming a full range of live sports and entertainment events including
concerts, boxing matches, special events and awards presentations, as well as
sporting events, tournaments and exhibitions. The arena will be constructed and
configured in a manner that will make it capable of housing an NBA or NHL
franchise.

“AEG
and Harrah’s Entertainment have put together a compelling, privately funded
arena plan that will be a fantastic new attraction for

Las
Vegas

Valley visitors
and serve as a much needed sports and entertainment venue for

Clark

County,”
said Rory Reid,

Clark

County commission
chairman.

“With
such exemplary reputations in delivering wonderful guest experiences, AEG and
Harrah’s are well-suited to bring the largest arena to the region. I’m looking
forward to working closely with both organizations in bringing this arena to
fruition for the entire region to enjoy.”

Projected
to open in 2010, the venue will also feature private “hospitality
centers,” luxury suites, club seats and an array of amenities, gourmet
food offerings and entertainment options to make every guest’s experience
memorable and world-class.

“This
arena is part of our on-going growth strategy and very much a part of our
master plan for

Las Vegas,”
said Gary Loveman, chairman, CEO and president of Harrah’s Entertainment, Inc.
“We are committed to offering a variety of entertainment options to our
customers, and this arena will allow us to bring to Las Vegas high-quality
sporting events along with top-name entertainment that our partners, AEG, have
an unparalleled track record of delivering.”

The
proposed arena location, directly behind the Bally’s and

Paris resorts, will provide visitors
convenient access between the arena and all the world-renowned amenities the
Strip offers, including thousands of hotel rooms, monorail service, restaurants
and nightclubs. “This site, behind our Bally’s and Paris resorts, is an
ideal location for this arena as it is within walking distance of the Strip and
conveniently located for the nearly 40 million visitors to Las Vegas each
year,” said Mr. Loveman.

“There
has never been a better time to create a world-class arena for

Las Vegas,” said Timothy J. Leiweke,
president and CEO, AEG. “A city known for showcasing the most important
and popular artists, events and extravaganzas needs a state-of-the-art arena to
ensure that every important touring act considers Las Vegas a ‘must-play’ city
while solidifying the city’s reputation globally.”

“This
arena is being developed with the capability of hosting an NHL or NBA franchise
from day one,” continued Leiweke. “We continue to have productive
conversations with potential owners and are optimistic that either basketball
or hockey, or both, will be played in

Las
Vegas when the venue opens.”

“We
would not be here today without the tremendous cooperation and vision of
Commissioner Reid and the members of the Clark County Board of Commissioners.
This privately-funded project will pay enormous dividends to the entire region,”
Leiweke added. “We also would like to extend our thanks to Mayor Goodman
for his interest and devotion to realize the need to have an arena in the

Las Vegas community. To
our friends, our partners and the citizens of Clark County, we are dedicated to
creating an arena Las Vegas can be proud of … I pledge today, we won’t let
you down.”

Pursuant
to a signed letter of intent between the two organizations, and subject to the
completion of definitive documents, the project calls for construction to
commence in summer 2008.