New Park Place Foundation Contributes $300,000 to Aid Displaced Nevada Casino Employees; New...

Business Editors

LAS VEGAS--(BUSINESS WIRE)--Dec. 11, 2001

A new charitable foundation created by Park Place Entertainment Corporation (NYSE:PPE) to better focus the company's philanthropic activities today made its first donations -- a total of $300,000 that will benefit displaced

The Park Place Foundation contributed $100,000 to the crisis fund established by the United Way of Las Vegas to aid unemployed or under-employed workers from all of the city's casinos. The foundation gave another $100,000 to a United Way fund established specifically to aid Park Place employees in Las Vegas who have been laid off or whose work hours have been reduced. A third $100,000 contribution is being made to the United Way of Reno to benefit displaced Park Place workers in that community.

The new contributions to the casino worker aid funds follow the company's earlier decision to extend approximately $1.8 million in additional health benefits to laid-off workers at its Las Vegas properties. In addition, Park Place funded $1 million in incremental benefits -- over and above what is required by law -- to Park Place employees who were displaced as a result of the sale of the Flamingo Reno.

In 2001, Park Place and the employees of its 19 domestic properties contributed more than $19 million to philanthropic and civic causes.

"The past few months have been difficult ones for our industry, our company and our employees," said Park Place President and Chief Executive Officer Thomas E. Gallagher. "As we launch the new Park Place Foundation, we felt that it was particularly important to specifically address the needs of our own communities.

"These donations will not change the events of September 11 or solve the underlying economic problems that created the significant decline in tourism that we've experienced this fall," Gallagher added. "But they will at least offer some help to the families of Park Place and other casino workers who have been directly affected by the downturn."

Park Place human resources departments at Las Vegas and Reno resorts will administer the United Way funds for Park Place's displaced workers. United Way of Las Vegas will administer the Las Vegas city-wide program.

The Park Place Foundation has been created to direct and energize the company's philanthropic activities. The Foundation will focus on the specific needs of the many communities in the six states in which Park Place operates casino resorts, with particular emphasis on charitable programs related to job creation, professional training and economic development. It also will serve as a catalyst to generate additional assistance to deserving programs for youth and disadvantaged people.

"The Foundation will work with each of our properties and community leaders to develop ongoing programs that will continue to give back to our communities, year in and year out," Gallagher said.

In Las Vegas, for example, Park Place and other casino and resort operators have long supported a widely acclaimed program that provides disadvantaged young people with free job training for positions in the casino, resort and hospitality industry.

In Mississippi, Park Place properties created the "Adopt a Town" program, which provides job training, life skills training and job transportation to unemployed and under-employed people.

And in Atlantic City, Park Place has been a leader in working with local Boys and Girls Clubs to develop facilities and programs intended to help local youngsters stay in school and develop the skills they need to move into successful careers.

The Foundation will offer employees the opportunity to participate with Park Place in making a difference in the company's communities through Foundation-sponsored charitable activities and events. Park Place will contribute directly to the Foundation and also will match employee contributions for specific Foundation programs.

The Park Place Foundation will be administered by a board of directors and will work closely with executives at each Park Place casino resort. Employees and management will jointly administer the Foundation, to ensure that donations and programs are tailored to meet the needs of each Park Place community.

Park Place Entertainment is the world's largest gaming company and owns, manages or has an interest in 28 gaming properties operating under the Bally's, Caesars, Flamingo, Grand Casinos and Hilton brand names with a total of approximately 2 million square feet of gaming space, more than 28,000 hotel rooms and approximately 60,000 employees worldwide.

Additional information about Park Place Entertainment can be accessed through the company's 24-hour investor relations service. Individuals may call toll-free 877-PPE-NYSE (877/773-6973) or visit www.parkplace.com to obtain the latest company news and stock price information, or to request information by email, fax or postal mail delivery.

Note: This news release contains "forward-looking statements" within the meaning of federal securities law, including statements concerning company plans, expectations and projections. The forward-looking statements in this news release are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those expressed in or implied by the statements herein. Additional information concerning potential factors that could affect Park Place's future financial results is included in the company's annual report on Form 10-K for the year ended Dec. 31, 2000, and its quarterly reports on Forms 10-Q for the quarters ended March 3, 2001, June 30, 2001, and Sept. 30, 2001.