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Caesars Entertainment Reports Fourth-Quarter and Full-Year 2012 Results

   Caesars Entertainment Reports Fourth-Quarter and Full-Year 2012 Results

PR Newswire

LAS VEGAS, Feb. 25, 2013

LAS VEGAS, Feb. 25, 2013 /PRNewswire/ -- Caesars Entertainment Corporation
(NASDAQ: CZR) today reported the following fourth-quarter and full-year 2012
results.

(Logo: http://photos.prnewswire.com/prnh/20120607/LA21221LOGO)

Financial Highlights

  oFourth-quarter revenues decline due mainly to Hurricane Sandy property
    closures, full-year revenues relatively unchanged
  oFourth-quarter customer spend per trip increases, full-year spending
    remains stable
  oHarrah's St. Louis sale and $2.75 billion of secured-notes offerings in
    2012 boost liquidity, strengthen balance sheet
  o$185 million raised for Bill's hotel-casino renovation and Linq project
    moves forward on Las Vegas Strip

The table below highlights certain GAAP and non-GAAP financial measures:

              Quarter Ended         Percent        YearEnded            Percent
              December 31,                         December31,
(Dollars in                         Favorable/                           Favorable/
millions,     2012       2011                      2012       2011
except per                          (Unfavorable)                        (Unfavorable)
share data)
Net revenues  $ 2,016.8  $ 2,108.2  (4.3)%         $ 8,586.7  $ 8,573.3  0.2%
(Loss)/income
from          (343.6)    198.8      *              (313.4)    816.3      *
operations
^(1)
Loss from
continuing
operations,   (427.0)    (201.7)    (111.7)%       (1,382.7)  (698.1)    (98.1)%
net of income
taxes
(Loss)/income
from
discontinued  (38.9)     6.3        *              (109.5)    31.4       *
operations,
net of income
taxes
Net loss
attributable  (469.7)    (220.6)    (112.9)%       (1,497.5)  (687.6)    (117.8)%
to Caesars ^
Diluted loss
per share     (3.75)     (1.76)     (113.1)%       (11.95)    (5.50)     (117.3)%
^(2)
Property      451.9      492.8      (8.3)%         2,038.7    2,016.7    1.1%
EBITDA ^(3)
Adjusted
EBITDA ^(4)   420.1      466.0      (9.8)%         1,937.7    1,943.6    (0.3)%
^

Net revenues, (loss)/income from operations, and loss from continuing
operations, net of income taxes for all periods presented in the table above
exclude the results of the Harrah's St. Louis casino and the results of the
subsidiaries that hold the Company's land concession in Macau, both of which
are presented as discontinued operations.
See footnotes following Caesars Entertainment Operating Company, Inc. results
later in this release.
* Not meaningful

Management Commentary

"The fourth quarter capped a year that was marked by significant progress on
our strategy to reinvigorate our core business, expand our domestic
distribution network, pursue growth online and internationally and continue to
improve the company's capital structure," said Gary Loveman, chairman, chief
executive officer and president of Caesars Entertainment Corporation. "In our
core business, we were encouraged by double-digit growth in customer spend per
trip in our Las Vegas Region, and an overall 6.2% increase in that key metric.

"Our efforts to enhance the hospitality presence we provide in Las Vegas
progressed with the opening in early February 2013 of the Nobu Hotel and
restaurant at Caesars Palace, construction of the Linq retail, dining and
entertainment experience on schedule to allow for an opening at the end of
this year and the beginning of the renovation of Bill's Gamblin' Hall &
Saloon," Loveman said. "Outside of Las Vegas, we are continuing to expand our
distribution network with the opening next week of Horseshoe Cincinnati and
the submission of our application for pre-approval to build an integrated
resort in the Incheon region of Korea in partnership with the Lippo Group.

"In the Internet space, Caesars Interactive Entertainment acquired Bingo
Blitz, further boosting our presence in the social and mobile-games market,"
Loveman said."We received approval from Nevada gaming regulators of our
application for a license to be an operator of interactive gaming in that
state and expect to begin offering play in the coming months. We are also
encouraged by New Jersey Gov. Chris Christie's support of online gaming in his
state, and anticipate having the opportunity to pursue online gaming there
soon.

"Finally, we have taken additional steps to further improve our capital
structure," he said. "During 2012, we issued $2.75 billion of new CEOC senior
secured notes. And, in concert with a new $1.5 billion CEOC senior secured
notes offering earlier this month, we received consent from our lenders for an
amendment to our credit facility that is expected to give us added flexibility
as we continue our efforts to drive equity value. The proceeds from this
recent offering will be used to repay outstanding term loans, a portion of
which mature in 2015."

Financial Results

Quarterly Results

Net revenues for the fourth quarter 2012 decreased $91.4 million or 4.3% from
the year-earlier period, due mainly to hurricane-related property closures in
the Atlantic City Region as well as continued competitive pressures in that
region. All five properties in the Atlantic City Region had closures during
the quarter due to Hurricane Sandy, which made landfall on October 29, 2012.
Harrah's Philadelphia reopened two days later and the Atlantic City properties
reopened five days later. However, the region's economy has been slow to
recover due to the devastation caused by the hurricane. The Company estimates
that the negative impact of Hurricane Sandy on net revenues was approximately
$40 million to $45 million. These revenue declines were partially offset by
higher revenues from Caesars' management companies resulting from the opening
of Horseshoe Cleveland in May 2012.

For the fourth quarter 2012, loss from operations was $343.6 million compared
with income from operations of $198.8 million in the prior-year quarter. This
change was due primarily to non-cash impairment charges in the fourth quarter
of 2012 and the income impact of revenue declines caused by Hurricane Sandy.
Non-cash impairment charges recorded in the fourth quarter 2012 totaled $448.2
million and were primarily comprised of an impairment charge of $450.0 million
related to the Company's tangible assets of one of the properties in the
Atlantic City Region, trademark impairment charges of $49.0 million and
goodwill impairment charges of $8.2 million, partially offset by a $60.0
million reversal of goodwill impairment charges recorded during the third
quarter of 2012 resulting from the finalization of the Company's preliminary
annual impairment assessment of goodwill as of September 30, 2012. The Company
estimates that the negative impact of Hurricane Sandy on loss from operations
and Property EBITDA was approximately $35 million to $40 million.

Net loss attributable to Caesars increased $249.1 million or 112.9% in the
fourth quarter of 2012 from 2011, due mainly to the changes described above,
partially offset by the increased tax benefit resulting from a higher pre-tax
loss, a decrease in interest expense, net of interest capitalized, and a
fourth-quarter 2012 gain on early extinguishments of debt, all of which are
further described in "Other Items" that follows later in this release.

For the fourth quarter 2012, Property EBITDA and Adjusted EBITDA decreased
$40.9 million or 8.3% and $45.9 million or 9.8%, respectively, from 2011
primarily driven by the income impact of lower revenues, notably the impact of
Hurricane Sandy.

Full-Year Results

Net revenues for 2012 increased $13.4 million or 0.2% from 2011 due mainly to
higher revenues from the Company's online businesses and from Caesars'
management companies due in part to the opening of Horseshoe Cleveland in May
2012. These higher revenues were mostly offset by revenue declines in the
Atlantic City Region resulting from the property closures mentioned above, as
well as economic and competitive pressure in that region during 2012.

For 2012, loss from operations was $313.4 million compared with income from
operations of $816.3 million in 2011. This change was due largely to non-cash
impairment charges that totaled $1,067.7 million comprised of the impairment
charges discussed above, together with intangible asset impairment charges of
$247.0 million related to goodwill, $160.0 million related to trademarks and
$32.0 million related to gaming rights, as well as tangible asset impairment
charges of $180.5 million related to a previously halted development project
in Biloxi, Mississippi, all of which were recorded earlier in 2012. By
comparison, non-cash intangible and tangible asset impairment charges were
$32.8 million in 2011. Also contributing to the loss from operations in 2012
was an increase in depreciation expense associated with the opening of the
Octavius Tower in January 2012, and increases in corporate expenses and
write-downs, reserves, and project opening costs, net of recoveries.

Net loss attributable to Caesars for 2012 increased $809.9 million or 117.8%
from 2011, due mainly to the increase in loss from operations and a net loss
from our discontinued operations of $109.5 million, partially offset by
increases in gains on early extinguishments of debt and the tax rate benefit,
as further described in "Other Items" that follows later in this release.

For the full year 2012, Property EBITDA increased 1.1% and Adjusted EBITDA
remained stable compared with the full year 2011.

Performance Metrics

The Company measures its performance in part through the tracking of trips by
rated customers, which means a customer whose gaming activity is tracked
through the Total Rewards customer-loyalty system ("trips"), and by spend per
rated customer trip ("spend per trip").

The following table reflects the percentage increase/(decrease) in trips and
spend per trip for the U.S. regions for the fourth quarter and full year of
2012 compared with the same periods in 2011.

                      Quarter Ended       YearEnded
                      December 31,        December31,
                      Trips    Spend per  Trips    Spend per
                               Trip                Trip
Consolidated Caesars  (10.9)%  6.2%       (4.1)%   0.9%
Las Vegas region      (3.0)%   11.1%      1.0%     3.2%
Atlantic City region:
Lodgers               (23.4)%  0.5%       (10.2)%  (0.8)%
Non-lodgers           (22.0)%  (0.3)%     (8.3)%   (1.1)%
All other regions     (6.2)%   4.1%       (2.5)%   (0.5)%

On a consolidated basis, trips decreased in the fourth quarter of 2012 from
the same period in 2011, due mainly to hurricane-related property closures and
competitive pressures in the Atlantic City Region, as well as uncertainty over
the course of the economy. The overall increase in spend per trip in the
fourth quarter of 2012 was attributable to an 11.1% increase in the Las Vegas
Region largely as a result of strength in the international high-end segment.

For the full year 2012, trips decreased on a consolidated basis compared with
2011, due to large declines in Atlantic City and modest declines in the rest
of the U.S. regions, except for Las Vegas where trips rose slightly. For 2012,
spend per trip increased compared with 2011, due mainly to an increase in the
Las Vegas region, which was partially offset by declines in Atlantic City and
the Company's other domestic regions.

On a consolidated basis, fourth-quarter cash average daily room rates for 2012
declined 6.0% to $84 from $90 in 2011 and the rates for the full year were
relatively unchanged. The fourth-quarter decline was due mainly to declines in
the Atlantic City Region as a result of lost convention business due to the
hurricane, as well as declines in the Las Vegas region as a result of a mix
shift away from group business. Total occupancy percentage decreased 2.5
percentage points and 0.6 percentage points in the fourth quarter and full
year 2012, respectively, compared with 2011. These declines were due mainly to
declines in the Atlantic City Region, partially offset by increases in several
of the other U.S. regions.

Results by Region

To provide more meaningful information than would be possible on either a
consolidated basis or an individual property basis, the Company's casino
properties and other operations have been grouped into seven regions.
Operating results for each of the regions are provided below.

Las Vegas Region

Las Vegas Region properties include Bally's Las Vegas, Bill's Gamblin' Hall&
Saloon, Caesars Palace, Flamingo Las Vegas, Harrah's Las Vegas, The Quad
Resort & Casino (formerly the Imperial Palace Hotel and Casino), Paris Las
Vegas, Planet Hollywood Resort & Casino and Rio.

           Quarter Ended     Percent        YearEnded            Percent
           December 31,                     December31,
(Dollars                     Favorable/                           Favorable/
in         2012     2011                    2012       2011
millions)                    (Unfavorable)                        (Unfavorable)
Net        $ 742.6  $ 767.2  (3.2)%         $ 3,029.9  $ 3,013.1  0.6%
revenues
Income
from       118.4    147.1    (19.5)%        428.7      495.5      (13.5)%
operations
Property
EBITDA     216.7    224.4    (3.4)%         806.3      823.7      (2.1)%
^(3)

Net revenues for the fourth quarter of 2012 declined $24.6 million or 3.2%
from the 2011 fourth quarter. Revenues were negatively impacted by the Project
Linq construction activities in 2012, which included the closure of O'Shea's
casino and several retail outlets at Harrah's Las Vegas earlier in the year,
and the ongoing renovation of The Quad Resort & Casino. The Company estimates
that Project Linq construction activities reduced fourth quarter 2012 net
revenues in Las Vegas by approximately $10 million to $15 million. Trips in
the region decreased 3.0% from 2011, while spend per trip rose 11.1% due to
strength in the international high-end segment. In the fourth quarter 2012,
hotel revenues remained stable, cash average daily room rates decreased from
$91 to $87 due mainly to a mix shift away from group business, and occupancy
rates decreased 1.0 percentage point from the fourth quarter of 2011. Income
from operations decreased $28.7 million or 19.5% compared with the fourth
quarter 2011 due mainly to the income impact of lower revenues, an increase in
depreciation expense due to the opening of the Octavius Tower in early 2012,
and an increase in write-downs, reserves, and project opening costs, net of
recoveries resulting from additional remediation costs compared with the
prior-year period. Fourth-quarter 2012 Property EBITDA declined $7.7 million
due to the decline in revenues. The Company estimates the Project Linq
construction activities reduced income from operations and Property EBITDA by
approximately $5 million to $10 million.

Net revenues for the full year 2012 increased $16.8 million or 0.6% from 2011
due primarily to strength in the international, high-end gaming segment
contributing to higher casino revenues and the January 2012 opening of 662
additional rooms in the Octavius Tower contributing to higher rooms revenue.
Revenues rose, despite the negative impact on results caused by Project Linq
construction, which the Company estimates to have reduced full year 2012 net
revenues by approximately $30 million to $40 million. Trips increased 1.0% in
2012 from 2011 and spend per trip increased 3.2%. In 2012, hotel revenues
increased 1.9%, cash average daily room rates were relatively unchanged and
occupancy rates decreased 1.5 percentage points from 2011. Income from
operations decreased $66.8 million or 13.5% from 2011, due primarily to an
increase in property operating expenses and depreciation expense associated
with the Octavius Tower, in addition to an increase in write-downs, reserves,
and project opening costs, net of recoveries. Property EBITDA for the full
year 2012 declined 2.1% from 2011 due mainly to the increase in property
operating expenses, partially offset by higher revenues. The Company estimates
that the Project Linq construction activities reduced full-year 2012 income
from operations and Property EBITDA by approximately $15 million to $25
million.

During the fourth quarter 2012, the Company secured $185.0 million in
financing to fund the complete renovation of Bill's Gamblin' Hall & Saloon
into a boutique lifestyle hotel that includes a dayclub/nightclub. The
conversion will include a complete remodeling of the guest rooms, casino
floor, and common areas, the addition of a second floor restaurant, and the
construction of an approximately 65,000 square foot rooftop pool and
dayclub/nightclub. The Company will own the property and manage the casino,
hotel, and food and beverage operations, and the dayclub/nightclub will be
leased to a third party. Bill's Gamblin' Hall & Saloon temporarily closed in
early February 2013 to accommodate these renovations. The renovated hotel,
casino, and restaurant are expected to open in December 2013 and the
dayclub/nightclub is expected to open in April 2014.

Atlantic City Region

Atlantic City Region properties include Bally's Atlantic City, Caesars
Atlantic City, Harrah's Atlantic City, Harrah's Philadelphia and Showboat
Atlantic City.

              Quarter Ended     Percent        YearEnded            Percent
              December 31,                     December31,
                                Favorable/                           Favorable/
(Dollars in   2012     2011                    2012       2011
millions)                       (Unfavorable)                        (Unfavorable)
Net revenues  $ 335.1  $ 414.9  (19.2)%        $ 1,681.3  $ 1,839.1  (8.6)%
(Loss)/income
from          (477.0)  (13.9)   *              (394.6)    79.6       *
operations
Property      28.8     38.0     (24.2)%        265.6      278.2      (4.5)%
EBITDA ^(3)

* Not meaningful

Net revenues in the fourth quarter 2012 decreased $79.8 million or 19.2% from
2011 due largely to the negative impact of Hurricane Sandy which forced the
closure of our properties in Atlantic City for five days and our property in
Philadelphia for two days, as well as continued competitive pressures in the
region. The Company estimates that the negative impact of Hurricane Sandy on
net revenues was approximately $40 million to $45 million. The slow recovery
from the storm resulted in significant trip declines in the region while spend
per trip remained stable. Loss from operations increased $463.1 million in the
fourth quarter 2012 from 2011 due largely to a non-cash impairment charge of
$450.0 million related to the tangible assets of one of the properties in the
region, with no comparable charge in the fourth quarter 2011. Lower revenues
were partially offset by a decrease in property operating expenses as a result
of the property closures and continued cost-reduction efforts. Property EBITDA
decreased as a result of the earnings impact of lower revenues. The Company
estimates that the negative impact of Hurricane Sandy on loss from operations
and Property EBITDA was approximately $35 million to $40 million.

For the full year 2012, net revenues decreased by $157.8 million or 8.6% from
2011 due mainly to continued economic and competitive pressures and the
negative impact of Hurricane Sandy as mentioned above. The properties in the
region experienced a 10.2% decline in trips during 2012 compared with 2011, as
well as a slight decline in spend per trip. Loss from operations was $394.6
million for 2012 compared with income from operations of $79.6 million in
2011. This change was due largely to the fourth quarter 2012 impairment
charges discussed above, with no comparable charge in 2011, as well as the
earnings impact of lower revenues.  Property EBITDA decreased as a result of
the earnings impact of lower revenues. The estimated impact of Hurricane Sandy
on loss from operations and Property EBITDA mentioned above also affects the
full year 2012 results.

The Company expects that the region will continue to be challenged as a result
of the slow recovery from the hurricane and competitive pressures.

Louisiana/Mississippi Region

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

              Quarter Ended     Percent        YearEnded            Percent
              December 31,                     December31,
                                Favorable/                           Favorable/
(Dollars in   2012     2011                    2012       2011
millions)                       (Unfavorable)                        (Unfavorable)
Net revenues  $ 258.4  $ 258.8  (0.2)%         $ 1,101.9  $ 1,104.4  (0.2)%
Income/(loss)
from          48.8     16.0     205.0%         (222.3)    122.0      *
operations
Property      53.9     46.8     15.2%          248.5      230.4      7.9%
EBITDA ^(3)

* Not meaningful

In the fourth quarter 2012, net revenues were stable compared with 2011
despite increased competitive pressures from new competition in Biloxi,
Mississippi, beginning in May 2012 and Baton Rouge, Louisiana, beginning in
September 2012. Spend per trip in the region increased while trips to the
region's properties declined. Income from operations in the fourth quarter
2012 increased $32.8 million or 205.0% from 2011, due mainly to non-cash
goodwill impairment adjustments recorded in the fourth quarter 2012 and
decreased property operating expenses. The Company recorded $8.2 million of
goodwill impairments in the fourth quarter 2012 and reversed $30.0 million of
previously recorded goodwill impairment charges resulting from the
finalization of the Company's preliminary annual impairment assessment as of
September 30, 2012. Property EBITDA increased $7.1 million or 15.2% due to
the decrease in property operating expenses as a result of cost-savings
initiatives. Net revenues in the region for the full year 2012 were down
slightly from 2011, due mainly to increased competitive pressures from new
competition as mentioned above, as well as the negative impact from Hurricane
Isaac in the third quarter 2012. Spend per trip in the region increased while
trips to the region's properties declined. Loss from operations was $222.3
million in 2012, compared with income from operations of $122.0 million in
2011. This change was due mainly to non-cash impairment charges of $334.7
million, primarily comprised of the fourth quarter 2012 goodwill impairment
adjustment discussed above, together with intangible asset impairments charges
of $175.0 million related to goodwill and tangible asset impairment charges of
$180.5 million related to a halted development project in Biloxi, Mississippi,
both of which were recorded earlier in 2012. The Company also recorded a
non-cash charge of $20.2 million related to exit activities associated with
the halted project. Property EBITDA increased $18.1 million or 7.9% due to a
decrease in property operating expenses.

Iowa/Missouri Region

Iowa/Missouri Region properties include Harrah's Council Bluffs, Harrah's
North Kansas City and Horseshoe Council Bluffs. On November 2, 2012, Caesars
sold its Harrah's St Louis casino; therefore, the results in the table below
exclude those of its Harrah's St. Louis casino for all periods presented.

              Quarter Ended     Percent        YearEnded        Percent
              December 31,                     December31,
                                Favorable/                       Favorable/
(Dollars in   2012     2011                    2012     2011
millions)                       (Unfavorable)                    (Unfavorable)
Net revenues  $ 109.2  $ 114.5  (4.6)%         $ 459.8  $ 466.7  (1.5)%
Income from   28.4     25.9     9.7%           123.1    105.6    16.6%
operations
Property      36.6     33.4     9.6%           153.5    136.4    12.5%
EBITDA ^(3)

Net revenues in the Iowa/Missouri region decreased $5.3 million or 4.6% due
mainly to a decrease in casino revenues as a result of new competition in the
Kansas City market beginning in the first quarter 2012. As a result, trips in
the fourth quarter 2012 declined from 2011, while spend per trip increased
modestly. In the fourth quarter 2012, income from operations and Property
EBITDA rose slightly as revenues declines were more than offset by decreases
in property operating expenses due mainly to cost-savings initiatives.

Net revenues for the full year 2012 decreased $6.9 million or 1.5% from 2011
due to declines in casino revenues. Spend per trip increased while trips to
the properties in the region declined as a result of the new competition
mentioned above. Income from operations and Property EBITDA increased for 2012
from 2011 due mainly to reduced property operating expenses resulting from
cost-savings initiatives.

Illinois/Indiana Region

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

           Quarter Ended     Percent        YearEnded            Percent
           December 31,                     December31,
(Dollars                     Favorable/                           Favorable/
in         2012     2011                    2012       2011
millions)                    (Unfavorable)                        (Unfavorable)
Net        $ 247.7  $ 253.4  (2.2)%         $ 1,050.4  $ 1,059.5  (0.9)%
revenues
Income
from       34.5     35.6     (3.1)%         156.0      145.8      7.0%
operations
Property
EBITDA     53.8     53.5     0.6%           233.4      226.5      3.0%
^(3)

In the fourth quarter 2012, net revenues decreased $5.7 million or 2.2% from
2011 due mainly to fourth-quarter 2011 revenues of $7.4 million related to the
receipt of business interruption insurance proceeds for lost profits caused by
property closures earlier that year due to flooding, with no comparable
amounts received in 2012. Spend per trip rose while trips to the region's
properties declined as a result of continued competitive pressures in the
region, despite the reopening earlier this year of the bridge that allows
direct access by customers to the Company's Southern Indiana property, which
closed in September 2011. Income from operations and Property EBITDA remained
relatively unchanged in the fourth quarter 2012 compared with 2011 as a result
of cost-savings initiatives that largely offset the income impact of lower
revenues.

Full year 2012 net revenues decreased $9.1 million or 0.9% from 2011 due
primarily to a slight decline in casino revenues. Trips and spend per trip
were both down year over year. Income from operations and Property EBITDA for
the full year 2012 increased from 2011 due mainly to reduced property
operating expenses as a result of cost-savings initiatives.

Other Nevada Region

Other Nevada Region properties include Harrah's Lake Tahoe, Harrah's Laughlin,
Harrah's Reno and Harveys Lake Tahoe.

               Quarter Ended    Percent        YearEnded        Percent
               December 31,                    December31,
                                Favorable/                       Favorable/
(Dollars in    2012     2011                   2012     2011
millions)                       (Unfavorable)                    (Unfavorable)
Net revenues   $ 100.2  $ 94.9  5.6%           $ 436.7  $ 450.0  (3.0)%
Income/(loss)
from           37.9     (1.8)   *              (23.6)   46.6     *
operations
Property       20.0     9.1     119.8%         94.0     89.5     5.0%
EBITDA ^(3)

* Not meaningful

Fourth quarter 2012 net revenues increased $5.3 million or 5.6% from 2011 due
mainly to an increase in casino revenue at the Company's Lake Tahoe
properties. Spend per trip increased while the number of trips to the region's
properties declined as a result of the challenging competitive environment.
Income from operations in the fourth quarter 2012 was $37.9 million compared
with a loss from operations of $1.8 million in the fourth quarter of 2011.
This change was due mainly to non-cash goodwill impairment adjustments
recorded in the fourth quarter 2012, and the income impact of higher revenues
combined with decreased property operating expenses. The Company reversed
$30.0 million of previously recorded goodwill impairment charges in the fourth
quarter 2012 resulting from the finalization of the Company's preliminary
annual impairment assessment of goodwill as of September 30, 2012. Property
EBITDA increased by $10.9 million due to higher revenues and decreased
property operating expenses as a result of cost-savings initiatives.

Net revenues for the full year 2012 decreased $13.3 million or 3.0% from 2011
due largely to a decline in casino revenues resulting from the challenging
competitive environment in the region during 2012. Trips and spend per trip
declined in 2012 compared with 2011. Loss from operations in 2012 was $23.6
million compared with income from operations of $46.6 million. This change was
due mainly to non-cash intangible asset impairment charges of $74.0 million
recorded in 2012, primarily comprised of the fourth quarter 2012 goodwill
impairment adjustment described above, together with impairments of $72.0
million related to goodwill and $31.0 million related to gaming rights, both
of which were recorded in the third quarter 2012. The impact of the above
charges was partially offset by a decrease in property operating expenses.
Property EBITDA rose slightly as the decrease in property operating expenses
more than offset lower revenues.

Managed, International and Other

The Managed region includes companies that operate three Indian-owned casinos,
as well as Horseshoe Cleveland and Caesars Windsor, and the results of
Thistledown Racetrack ("Thistledown") through August 2012 when the racetrack
was contributed to Rock Ohio Caesars, LLC, a joint venture in which Caesars
holds a 20% ownership interest. Subsequent to August 2012, the Managed region
includes the results of the subsidiary that will manage Thistledown once it
commences video lottery terminal operations, which is expected to occur in the
second quarter of 2013. The International region includes the results of
Caesars' international operations. The Other region is comprised of corporate
expenses, including administrative, marketing and development costs, income
from certain non-consolidated affiliates, and the results of Caesars
Interactive Entertainment, Inc., which consists of the businesses related to
the World Series of Poker^® ("WSOP") brand, an online real-money business in
the U.K. and alliances with online gaming providers in Italy and France, and
the results of Playtika Ltd., a social and mobile games developer.

In the fourth quarter 2012, the Company began discussions with interested
investors on a sale of the subsidiaries that hold the Company's land
concession in Macau. As a result of this plan of disposal, the assets and
liabilities have been classified as held for sale at December 31, 2012 and
2011 and its operating results have been classified as discontinued operations
for all periods presented and are excluded from the table below.

                                                                        
              Quarter Ended        Percent        Year Ended December
              December 31,                        31,                   Percent
                                   Favorable/
(Dollars in                                                             Favorable/
millions)     2012       2011      (Unfavorable)  2012       2011
                                                                        (Unfavorable)
Net revenues
Managed       $ 27.5     $ 11.2    145.5%         $ 89.5     $ 48.1     86.1%
International 123.4      124.9     (1.2)%         461.5      458.7      0.6%
Other         72.7       68.4      6.3%           275.7      133.7      106.2%
Total net     $ 223.6    $ 204.5   9.3%           $ 826.7    $ 640.5    29.1%
revenues
Income/(loss)
from
operations
Managed       $ 4.0      $ 1.2     233.3%         $ 7.0      $ 6.0      16.7%
International 13.9       23.7      (41.4)%        37.4       54.9       (31.9)%
Other         (152.5)    (35.0)    (335.7)%       (425.1)    (239.7)    (77.3)%
Total loss
from          $ (134.6)  $ (10.1)  *              $ (380.7)  $ (178.8)  (112.9)%
operations

* Not meaningful

In the fourth quarter 2012, net revenues rose $19.1 million or 9.3% from 2011.
The increase is due mainly to revenues associated with the Company's new
managed casino, Horseshoe Cleveland, which opened in May 2012, including an
increase in reimbursable expenses for Horseshoe Cleveland that is presented on
a gross revenue basis, resulting in an increase in net revenues and an equally
offsetting increase in operating expenses. Loss from operations increased
$124.5 million compared with the fourth quarter of 2011 due mainly to an
increase in corporate expense of $12.1 million, an increase in write-downs,
reserves, and project opening costs, net of recoveries of $12.1 million that
includes a write-off of a $15.0 million investment in a potential joint
venture. Additionally, there was a non-cash intangible asset impairment charge
of $49.0 million in the fourth quarter of 2012 compared with a charge of $2.7
million in 2011. Increases in corporate expense were attributable to the
consolidation of certain functions at corporate and increased pension
accruals.

For the full year 2012, net revenues for the region increased $186.2 million
or 29.1% from 2011, due mainly to increases associated with our interactive
operations, as well as increased revenues from the Company's management
companies as discussed above. Loss from operations increased $201.9 million
or 112.9% from 2011, due mainly to non-cash intangible asset impairment
charges of $206.0 million in 2012, comprised of the fourth-quarter 2012
impairment charge described above, together with intangible asset impairments
of $157.0 million related to trademarks recorded in earlier in 2012, compared
with non-cash intangible and tangible asset impairments of $29.8 million in
2011. Also contributing to the higher loss from operations are increases in
corporate expense of $42.2 million resulting from the consolidation of certain
functions at corporate and increased pension accruals and stock based
compensation expense, partially offset by the income impact of increased
revenues and a decrease of $19.0 million in write-downs, reserves, and project
opening costs, net of recoveries related to lower efficiency project costs.

Other Items

Interest Expense, Net of Interest Capitalized

Interest expense, net of interest capitalized, decreased by $147.0 million or
21.8% in the fourth quarter 2012 from the same period in 2011.During the
fourth quarter 2011, the Company recorded a $183.2 million charge to interest
expense as a result of its decision that its interest-rate swap agreements no
longer qualified as hedging instruments for accounting purposes. However, in
2012 interest expense was unfavorably affected by higher interest rates as a
result of extending the maturities of the Company's debt combined with higher
debt balances compared with the fourth quarter 2011. Interest expense for the
full year 2012 decreased $21.0 million from 2011 as the charge mentioned above
more than offset increases to interest expense resulting from higher interest
rates and debt balances in 2012 compared with 2011.Interest expense is
reported net of interest capitalized of $10.7 million and $10.6 million for
the fourth quarter of 2012 and 2011, respectively, and $38.2 million and $22.8
million for the full year 2012 and 2011, respectively. Interest capitalized in
the fourth quarter and full year 2012 is primarily related to Project Linq,
while interest capitalized in the same periods of 2011 was related to the
completion of the Octavius Tower at Caesars Palace Las Vegas.

Gains on Early Extinguishments of Debt

During the fourth quarter of 2012, the Company repurchased $165.0 million face
value of CMBS Loans for $107.3 million, recognizing a gain on early
extinguishments of debt of $56.5 million, net of deferred financing costs. The
Company did not have any gains in connection with the early extinguishments of
debt in the fourth quarter 2011. The full year 2012 gains on early
extinguishments of debt of $136.0 million are the result of the above
repurchase as well as the January, March and April 2012 CMBS Loan repurchases
previously disclosed. During 2011, we recognized a $47.9 million gain on early
extinguishments of debt as the result of March and April 2011 CMBS Loan
repurchases.

Benefit for Income Taxes

The effective tax rate benefit on continuing operations for the fourth quarter
2012 and 2011 was 47.2% and 56.8%, respectively. The decrease in the quarterly
effective tax rate benefit is due mainly to (i) a decrease in the tax benefit
from foreign operations in 2012 mostly related to the effect of providing
deferred taxes on unremitted earning from foreign subsidiaries in Uruguay that
are no longer permanently reinvested, (ii) a decrease in state deferred tax
benefits recognized in 2012 relative to 2011 mostly as a result of a state
restructuring completed in 2011 and (iii) deferred tax benefits recognized in
2011 from a correction of our deferred tax liabilities, which were partially
offset by tax benefits recognized in 2012 from the decrease of uncertain tax
positions relating to the settlement of our IRS examinations.

The Company's full-year effective tax rate benefit for 2012 and 2011 was 38.6%
and 43.4%, respectively. The year-over-year decrease in the effective tax rate
benefit was primarily due to (i) nondeductible goodwill impairments in 2012,
(ii) a decrease in the tax benefit from foreign operations in 2012 mostly
related to the effect of providing deferred taxes on unremitted earning from
foreign subsidiaries in Uruguay that are no longer permanently reinvested,
(iii) a decrease in state deferred tax benefits recognized in 2012 relative to
2011 mostly as a result of a state restructuring completed in 2011 and (iv)
deferred tax benefits recognized in 2011 from a correction of the deferred tax
liabilities, which were partially offset by tax benefits recognized in 2012
from the decrease of uncertain tax positions relating to the settlement of a
foreign matter and our IRS examinations.

(Loss)/income from discontinued operations, net of income taxes

Loss from discontinued operations, net of income taxes for the full year 2012
was $109.5 million compared with income from discontinued operations, net of
income taxes of $31.4 million in 2011. This change was due mainly to a $101.0
million non-cash impairment charge related to the Company's land concession in
Macau and income taxes related to the sale of Harrah's St. Louis.

Cost-Savings Initiatives

Caesars Entertainment has undertaken comprehensive cost-reduction efforts to
rightsize expenses with business levels through its implementation of "Project
Renewal," an initiative designed to reinvent certain aspects of the Company's
functional and operating units to gain significant further cost reductions and
streamline its operations. As a part of Project Renewal, the Company designed
a shared-services organization that has enabled more efficient decision making
and sharing of best practices. Caesars believes that the Company now has a
permanently lower cost structure and benefits from greater concentration of
specified talent and quicker decision making. The Company estimates that
Project Renewal and other cost-savings programs produced $56.3 million and
$190.8 million in incremental cost savings for the fourth quarter and full
year 2012, respectively, compared with the same periods in 2011. Additionally,
as of December 31, 2012, the Company expects that these and additional new
cost-savings programs will produce additional annual cost savings of $212.8
million, based on the full implementation of current projects that are in
process. As the Company realizes savings or identifies new cost-reduction
activities, this amount will change.

Caesars Entertainment Operating Company, Inc. Results

As a substantial portion of the debt of Caesars Entertainment's consolidated
group is issued by Caesars Entertainment Operating Company, Inc. ("CEOC"), the
Company believes it is meaningful to provide information on the results of
operations of CEOC, which are summarized below. CEOC's Summary of Operations,
Supplemental Information, and Reconciliation of Net Loss Attributable to CEOC
to Adjusted EBITDA, LTM Adjusted EBITDA-Pro Forma and LTM Adjusted EBITDA-Pro
Forma - CEOC Restricted, can be found at the end of this release.

              Quarter Ended         Percent        YearEnded            Percent
              December 31,                         December31,
                                    Favorable/                           Favorable/
(Dollars in   2012       2011                      2012       2011
millions)                           (Unfavorable)                        (Unfavorable)
Net revenues  $ 1,553.7  $ 1,580.5  (1.7)%         $ 6,479.9  $ 6,542.8  (1.0)%
(Loss)/income
from          (329.9)    148.2      *              (455.0)    645.1      *
operations
^(1)
Loss from
continuing
operations,   (446.9)    (238.8)    (87.1)%        (1,513.5)  (800.4)    (89.1)%
net of income
taxes
(Loss)/income
from
discontinued  (38.9)     6.3        *              (109.5)    31.4       *
operations,
net of income
taxes
Net loss
attributable  (488.5)    (246.9)    (97.9)%        (1,627.4)  (779.4)    (108.8)%
to CEOC
Property      375.3      379.2      (1.0)%         1,602.8    1,591.7    0.7%
EBITDA ^(3)
Adjusted      342.7      351.3      (2.4)%         1,479.5    1,513.8    (2.3)%
EBITDA ^(4)

Net revenues, (loss)/income from operations, and loss from continuing
operations, net of income taxes for all periods presented in the table above
exclude the results of the Harrah's St. Louis casino and the results of the
subsidiaries that hold the Company's land concession in Macau, both of which
are presented as discontinued operations.
*    Not meaningful
     Loss from operations for Caesars includes intangible and tangible asset
     impairment charges of $448.2 million and $1,067.7 million in the fourth
     quarter and the full year of 2012, respectively. Loss from operations for
     CEOC includes intangible and tangible asset impairment charges of $448.2
^(1) million and $1,064.7 million in the fourth quarter and the full year of
     2012, respectively. Income from operations for Caesars and CEOC included
     intangible and tangible asset impairment charges of $5.7 million and
     $32.8 million for the fourth quarter and the full year of 2011,
     respectively.
     Diluted loss per share for the periods shown includes loss per share from
     discontinued operations in the fourth quarter and the full year of 2012
^(2) of $0.31 and $0.87 per share, respectively, and earnings per share from
     discontinued operations for the fourth quarter and the full year of 2011
     of $0.05 and $0.25 per share, respectively.
     Property EBITDA is a non-GAAP financial measure that is defined and
     reconciled to its most comparable GAAP measure later in this release.
^(3) Property EBITDA is included because the Company's management uses
     Property EBITDA to measure performance and allocate resources, and
     believes that Property EBITDA provides investors with additional
     information consistent with that used by management.
     Adjusted EBITDA is a non-GAAP financial measure that is defined and
     reconciled to its most comparable GAAP measure later in this release.
     Adjusted EBITDA is included because management believes that Adjusted
     EBITDA provides investors with additional information that allows a
^(4) better understanding of the results of operational activities separate
     from the financial impact of decisions made for the long-term benefit of
     the Company. Adjusted EBITDA does not include the pro forma effect of
     adjustments related to properties and yet-to-be-realized cost savings
     from the Company's profitability improvement programs.

Caesars Entertainment Corporation (NASDAQ: CZR) will host a conference call at
2 p.m. Pacific Time Monday, February 25, 2013, to review its fourth-quarter
results. The call will be accessible in the Investor Relations section of
www.caesars.com.

If you would like to ask questions and be an active participant in the call,
you may dial (877) 637-3676, or (832) 412-1752 for international callers, and
enter Conference ID 98080704 approximately 10 minutes before the call start
time. A recording of the live call will be available on the Company's website
for 90 days after the event.

Caesars Entertainment Corporation is the world's most diversified
casino-entertainment provider and the most geographically diverse U.S.
casino-entertainment company. Since its beginning in Reno, Nevada, 75 years
ago, Caesars has grown through development of new resorts, expansions and
acquisitions and now operates casinos on four continents. The company's
resorts operate primarily under the Caesars®, Harrah's® and Horseshoe® brand
names. Caesars also owns the World Series of Poker® and the London Clubs
International family of casinos. Caesars is focused on building loyalty and
value with its guests through a unique combination of great service, excellent
products, unsurpassed distribution, operational excellence and technology
leadership. We are committed to environmental sustainability and energy
conservation and recognize the importance of being a responsible steward of
the environment. For more information, please visit www.caesars.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," "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 Caesars. These forward-looking
statements are based on current expectations and projections about future
events.

Investors are cautioned that forward-looking statements are not guarantees of
future performance or results and involve risks and uncertainties that cannot
be predicted or quantified, and, consequently, the actual performance of
Caesars 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 the Company's 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):

  othe impact of the Company's significant indebtedness;
  othe effects of local and national economic, credit, and capital market
    conditions on the economy, in general, and on the gaming industry, in
    particular;
  othe ability to realize the expense reductions from cost-savings programs;
  oaccess to available and reasonable financing on a timely basis;
  othe ability of the Company's customer-tracking, customer loyalty, and
    yield-management programs to continue to increase customer loyalty and
    same-store or hotel sales;
  ochanges in laws, including increased tax rates, smoking bans, regulations
    or accounting standards, third-party relations and approvals, and
    decisions, disciplines, and fines of courts, regulators, and governmental
    bodies;
  othe ability to recoup costs of capital investments through higher
    revenues;
  oabnormal gaming holds ("gaming hold" is the amount of money that is
    retained by the casino from wagers by customers);
  othe ability to timely and cost-effectively integrate companies that the
    Company acquires into its operations;
  othe effects of competition, including locations of competitors,
    competition for new licenses and operating and market competition;
  othe potential difficulties in employee retention and recruitment as a
    result of the Company's substantial indebtedness or any other factor;
  oconstruction factors, including delays, increased costs of 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;
  olitigation outcomes and judicial and governmental body actions, including
    gaming legislative action, referenda, regulatory disciplinary actions, and
    fines and taxation;
  othe effects of environmental and structural building conditions relating
    to the Company's properties;
  oaccess to insurance on reasonable terms for the Company's assets;
  oacts of war or terrorist incidents, severe weather conditions, uprisings,
    or natural disasters;
  olosses sustained as a result of natural disasters, including losses in
    revenues and damage to property, and the impact of severe weather
    conditions on our ability to attract customers to certain of our
    facilities, such as the amount of losses and disruption to our company as
    a result of Hurricane Sandy in late October 2012; and
  othe impact, if any, of unfunded pension benefits under multi-employer
    pension plans.

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.
Caesars 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 release.



CAESARS ENTERTAINMENT CORPORATION

CONSOLIDATED SUMMARY OF OPERATIONS

(UNAUDITED)
                                  Quarter Ended         YearEnded
                                  December 31,          December31,
(In millions, except per share    2012       2011       2012         2011
data)
Net revenues                      $ 2,016.8  $ 2,108.2  $ 8,586.7    $ 8,573.3
Property operating expenses       (1,581.1)  (1,637.3)  (6,617.5)    (6,650.6)
Depreciation and amortization     (180.9)    (171.5)    (715.5)      (678.1)
Write-downs, reserves, and
project opening costs, net of     (42.8)     (13.8)     (106.2)      (73.8)
recoveries
Intangible and tangible asset     (448.2)    (5.7)      (1,067.7)    (32.8)
impairment charges
Loss on interests in              (8.7)      (3.7)      (17.5)       (7.9)
non-consolidated affiliates
Corporate expense                 (49.8)     (37.7)     (195.0)      (152.8)
Acquisition and integration costs (3.9)      (0.7)      (6.1)        (4.3)
Amortization of intangible assets (45.0)     (39.0)     (174.6)      (156.7)
(Loss)/income from operations     (343.6)    198.8      (313.4)      816.3
Interest expense, net of interest (527.0)    (674.0)    (2,101.3)    (2,122.3)
capitalized
Gains on early extinguishments of 56.5       —          136.0        47.9
debt
Other income, including interest  6.1        8.6        25.5         25.3
income
Loss from continuing operations   (808.0)    (466.6)    (2,253.2)    (1,232.8)
before income taxes
Benefit for income taxes          381.0      264.9      870.5        534.7
Loss from continuing operations,  (427.0)    (201.7)    (1,382.7)    (698.1)
net of income taxes
Discontinued operations
Income/(loss) from discontinued   6.6        12.8       (59.4)       59.2
operations
Provision for income taxes        (45.5)     (6.5)      (50.1)       (27.8)
(Loss)/income from discontinued   (38.9)     6.3        (109.5)      31.4
operations, net of income taxes
Net loss                          (465.9)    (195.4)    (1,492.2)    (666.7)
Less: net income attributable to  (3.8)      (25.2)     (5.3)        (20.9)
non-controlling interests
Net loss attributable to Caesars  $ (469.7)  $ (220.6)  $ (1,497.5)  $ (687.6)
(Loss)/earnings per share - basic
and diluted
Loss per share from continuing    $ (3.44)   $ (1.81)   $ (11.08)    $ (5.75)
operations
(Loss)/earnings per share from    (0.31)     0.05       (0.87)       0.25
discontinued operations
Net loss per share                $ (3.75)   $ (1.76)   $ (11.95)    $ (5.50)







CAESARS ENTERTAINMENT CORPORATION

CONSOLIDATED SUMMARY BALANCE SHEETS

(UNAUDITED)
                                                  As of December 31,
(In millions)                                     2012        2011
Assets
Current assets
Cash and cash equivalents                         $ 1,757.5   $ 891.2
 Restricted Cash ^ (a)                  833.6       66.6
 Assets held for sale ^(b)              5.1         15.5
Other current assets                              897.4       863.9
Total current assets                              3,493.6     1,837.2
Property and equipment, net                       15,701.7    16,485.6
Goodwill and other intangible assets              7,146.0     7,723.6
Restricted cash                                   364.6       451.1
Assets held for sale ^(b)                         471.2       1,177.7
Other long-term assets                            821.0       840.4
                                                  $ 27,998.1  $ 28,515.6
Liabilities and Stockholders' Equity
Current liabilities
 Current portion of long-term debt ^(a) $ 879.9     $ 40.4
 Liabilities held for sale ^(b)         3.8         13.5
Other current liabilities                         1,704.6     1,548.9
Total current liabilities                         2,588.3     1,602.8
Long-term debt                                    20,532.2    19,759.5
Liabilities held for sale ^(b)                    52.1        66.3
Other long-term liabilities                       5,157.1     6,033.6
                                                  28,329.7    27,462.2
Total Caesars stockholders' (deficit)/equity      (411.7)     1,006.7
Non-controlling interests                         80.1        46.7
Total (deficit)/equity                            (331.6)     1,053.4
                                                  $ 27,998.1  $ 28,515.6



     The balance of restricted cash at December 31, 2012 includes $750.0
     million of escrow proceeds related to the Company's December 13, 2012
^(a) bond offering. The $750.0 million debt obligation is included in the
     current portion of long-term debt until the escrow conditions are met, at
     which time, the cash will be released from restriction and the debt will
     be classified as long-term.
^(b) The balances at December 31, 2012 and 2011 relate to the Company's
     discontinued operations.







CAESARS ENTERTAINMENT CORPORATION

SUPPLEMENTAL INFORMATION

RECONCILIATION OF NET LOSS ATTRIBUTABLE TO CAESARS ENTERTAINMENT CORPORATION

TO PROPERTY EBITDA

(UNAUDITED)
Property EBITDA is presented as a supplemental measure of the Company's performance. Property EBITDA is defined
as revenues less property operating expenses and is comprised of net income/(loss) before (i) interest expense,
net of interest capitalized and interest income, (ii) (benefit)/provision for income taxes, (iii) depreciation
and amortization, (iv) corporate expenses, and (v) certain items that the Company does not consider indicative of
its ongoing operating performance at an operating property level. In evaluating Property EBITDA you should be
aware that, in the future, the Company may incur expenses that are the same or similar to some of the adjustments
in this presentation. The presentation of Property EBITDA should not be construed as an inference that future
results will be unaffected by unusual or unexpected items.



Property EBITDA is a non-GAAP financial measure commonly used in the Company's industry and should not be
construed as an alternative to net income/(loss) as an indicator of operating performance or as an alternative to
cash flow provided by operating activities as a measure of liquidity (as determined in accordance with GAAP).
Property EBITDA may not be comparable to similarly titled measures reported by other companies within the
industry. Property EBITDA is included because management uses Property EBITDA to measure performance and allocate
resources, and believes that Property EBITDA provides investors with additional information consistent with that
used by management.



The following tables reconcile net loss attributable to Caesars to Property EBITDA for the periods indicated.
                 Quarter Ended December 31, 2012
                 Las      Atlantic   Louisiana/   Iowa/     Illinois/  Other
                                                                               Managed,   Discontinued
(In millions)    Vegas    City       Mississippi  Missouri  Indiana    Nevada  Int'l and  Operations    Total
                                                                               Other
                 Region   Region     Region       Region    Region     Region
Net loss
attributable to                                                                                         $ (469.7)
Caesars
Net income
attributable to                                                                                         3.8
non-controlling
interests
Net loss                                                                                                (465.9)
Loss from
discontinued                                                                                            38.9
operations, net
of income taxes
Net loss from
continuing                                                                                              (427.0)
operations, net
of income taxes
Benefit for                                                                                             (381.0)
income taxes
Loss from
continuing
operations                                                                                              (808.0)
before income
taxes
Other income,
including                                                                                               (6.1)
interest income
Gains on early
extinguishments                                                                                         (56.5)
of debt
Interest
expense, net of                                                                                         527.0
interest
capitalized
Income/(loss)    $ 118.4  $ (477.0)  $    48.8    $  28.4   $   34.5   $ 37.9  $ (134.6)                (343.6)
from operations
Depreciation and 67.0     45.6       19.8         8.1       19.1       7.3     14.0                     180.9
amortization
Amortization of
intangible       19.0     4.0        5.5          —         0.3        3.5     12.7                     45.0
assets
Intangible and
tangible asset   —        450.0      (21.8)       —         —          (29.0)  49.0                     448.2
impairment
charges
Write-downs,
reserves, and
project opening  12.8     6.0        1.7          0.1       —          0.3     21.9                     42.8
costs, net of
recoveries
Acquisition and
integration      —        —          —            —         —          —       3.9                      3.9
costs
(Income)/loss on
interests in     (0.4)    0.1        (0.2)        —         —          —       9.2                      8.7
non-consolidated
affiliates
Corporate        —        —          —            —         —          —       49.8                     49.8
expense
EBITDA
attributable to                                                                           $    16.2     16.2
discontinued
operations
Property EBITDA  $ 216.7  $ 28.8     $    53.9    $  36.6   $   53.8   $ 20.0  $ 25.9     $    16.2     $ 451.9



CAESARS ENTERTAINMENT CORPORATION

SUPPLEMENTAL INFORMATION

RECONCILIATION OF NET LOSS ATTRIBUTABLE TO CAESARS ENTERTAINMENT CORPORATION

TO PROPERTY EBITDA

(UNAUDITED)
                 Quarter Ended December 31, 2011
                 Las       Atlantic   Louisiana/   Iowa/     Illinois/  Other
                                                                                  Managed,   Discontinued
(In millions)    Vegas     City       Mississippi  Missouri  Indiana    Nevada    Int'l and  Operations    Total
                                                                                  Other
                 Region    Region     Region       Region    Region     Region
Net loss
attributable to                                                                                            $ (220.6)
Caesars
Net income
attributable to                                                                                            25.2
non-controlling
interests
Net loss                                                                                                   (195.4)
Income from
discontinued                                                                                               (6.3)
operations, net
of income taxes
Net loss from
continuing                                                                                                 (201.7)
operations, net
of income taxes
Benefit for                                                                                                (264.9)
income taxes
Loss from
continuing
operations                                                                                                 (466.6)
before income
taxes
Other income,
including                                                                                                  (8.6)
interest income
Interest
expense, net of                                                                                            674.0
interest
capitalized
Income/(loss)    $ 147.1   $ (13.9)   $   16.0     $  25.9   $  35.6    $ (1.8)   $ (10.1)                 198.8
from operations
Depreciation and 60.0      45.3       18.2         7.6       19.0       7.1       14.3                     171.5
amortization
Amortization of
intangible       19.1      3.8        5.5          —         0.3        3.5       6.8                      39.0
assets
Intangible and
tangible asset   —         —          3.0          —         —          —         2.7                      5.7
impairment
charges
Write-downs,
reserves, and
project opening  (1.2)     2.1        4.2          (0.1)     (1.4)      0.4       9.8                      13.8
costs, net of
recoveries
Acquisition and
integration      —         —          —            —         —          —         0.7                      0.7
costs
(Income)/loss on
interests in     (0.6)     0.7        (0.2)        —         —          —         3.8                      3.7
non-consolidated
affiliates
Corporate        —         —          —            —         —          —         37.7                     37.7
expense
EBITDA
attributable to                                                                              $   21.9      21.9
discontinued
operations
Property EBITDA  $ 224.4   $ 38.0     $   46.8     $  33.4   $  53.5    $ 9.1     $ 65.7     $   21.9      $ 492.8







CAESARS ENTERTAINMENT CORPORATION

SUPPLEMENTAL INFORMATION

RECONCILIATION OF NET LOSS ATTRIBUTABLE TO CAESARS ENTERTAINMENT CORPORATION

TO PROPERTY EBITDA

(UNAUDITED)
                 Year Ended December 31, 2012
                 Las       Atlantic    Louisiana/   Iowa/     Illinois/  Other      Managed,
                                                                                                Discontinued
(In millions)    Vegas     City        Mississippi  Missouri  Indiana    Nevada     Int'l and   Operations    Total
                                                                                    Other
                 Region    Region      Region       Region    Region     Region
Net loss
attributable to                                                                                               $ (1,497.5)
Caesars
Net income
attributable to                                                                                               5.3
non-controlling
interests
Net loss                                                                                                      (1,492.2)
Loss from
discontinued                                                                                                  109.5
operations, net
of income taxes
Net loss from
continuing                                                                                                    (1,382.7)
operations, net
of income taxes
Benefit for                                                                                                   (870.5)
income taxes
Loss from
continuing
operations                                                                                                    (2,253.2)
before income
taxes
Other income,
including                                                                                                     (25.5)
interest income
Gains on early
extinguishments                                                                                               (136.0)
of debt
Interest
expense, net of                                                                                               2,101.3
interest
capitalized
Income/(loss)    $ 428.7   $ (394.6)   $  (222.3)   $ 123.1   $  156.0   $ (23.6)   $ (380.7)                 (313.4)
from operations
Depreciation and 268.2     179.7       77.0         30.4      75.8       28.7       55.7                      715.5
amortization
Amortization of
intangible       75.8      16.0        22.1         —         1.0        13.9       45.8                      174.6
assets
Intangible and
tangible asset   3.0       450.0       334.7        —         —          74.0       206.0                     1,067.7
impairment
charges
Write-downs,
reserves, and
project opening  33.1      12.2        37.7         0.1       0.6        0.9        21.6                      106.2
costs, net of
recoveries
Acquisition and
integration      —         —           —            —         —          —          6.1                       6.1
costs
(Income)/loss on
interests in     (2.6)     2.2         (0.6)        —         —          —          18.5                      17.5
non-consolidated
affiliates
Corporate        —         —           —            —         —          —          195.0                     195.0
expense
EBITDA
attributable to                                                                                 $   69.5      69.5
discontinued
operations
Property EBITDA  $ 806.3   $ 265.6     $  248.5     $ 153.5   $  233.4   $ 94.0     $ 167.9     $   69.5      $ 2,038.7







CAESARS ENTERTAINMENT CORPORATION

SUPPLEMENTAL INFORMATION

RECONCILIATION OF NET LOSS ATTRIBUTABLE TO CAESARS ENTERTAINMENT CORPORATION

TO PROPERTY EBITDA

(UNAUDITED)
                 Year Ended December 31, 2011
                 Las       Atlantic  Louisiana/   Iowa/     Illinois/  Other    Managed,
                                                                                            Discontinued
(In millions)    Vegas     City      Mississippi  Missouri  Indiana    Nevada   Int'l and   Operations    Total
                                                                                Other
                 Region    Region    Region       Region    Region     Region
Net loss
attributable to                                                                                           $ (687.6)
Caesars
Net income
attributable to                                                                                           20.9
non-controlling
interests
Net loss                                                                                                  (666.7)
Income from
discontinued                                                                                              (31.4)
operations, net
of income taxes
Net loss from
continuing                                                                                                (698.1)
operations, net
of income taxes
Benefit for                                                                                               (534.7)
income taxes
Loss from
continuing
operations                                                                                                (1,232.8)
before income
taxes
Other income,
including                                                                                                 (25.3)
interest income
Gains on early
extinguishments                                                                                           (47.9)
of debt
Interest
expense, net of                                                                                           2,122.3
interest
capitalized
Income/(loss)    $ 495.5   $ 79.6    $  122.0     $ 105.6   $  145.8   $ 46.6   $ (178.8)                 816.3
from operations
Depreciation and 238.4     174.3     73.3         30.6      78.0       28.3     55.2                      678.1
amortization
Amortization of
intangible       76.4      15.1      21.9         —         1.4        13.9     28.0                      156.7
assets
Intangible and
tangible asset   —         —         3.0          —         —          —        29.8                      32.8
impairment
charges
Write-downs,
reserves, and
project opening  13.4      6.6       10.8         0.3       1.4        0.7      40.6                      73.8
costs, net of
recoveries
Acquisition and
integration      0.2       —         —            —         —          —        4.1                       4.3
costs
(Income)/loss on
interests in     (0.3)     2.5       (0.7)        —         —          —        6.4                       7.9
non-consolidated
affiliates
Corporate        —         —         —            —         —          —        152.8                     152.8
expense
EBITDA
attributable to                                                                             $   94.0      94.0
discontinued
operations
Property EBITDA  $ 823.7   $ 278.2   $  230.4     $ 136.4   $  226.5   $ 89.5   $ 138.0     $   94.0      $ 2,016.7







CAESARS ENTERTAINMENT CORPORATION SUPPLEMENTAL INFORMATION

RECONCILIATION OF NET LOSS ATTRIBUTABLE TO CAESARS ENTERTAINMENT CORPORATION
TO

ADJUSTED EBITDA AND LTM ADJUSTED EBITDA-PRO FORMA

(UNAUDITED)
Adjusted EBITDA is defined as earnings before interest expense, income taxes,
and depreciation and amortization ("EBITDA") further adjusted to exclude
certain non-cash and other items required or permitted in calculating covenant
compliance under the indenture governing CEOC's secured credit facilities.



Last twelve months ("LTM") Adjusted EBITDA-Pro Forma is defined as Adjusted
EBITDA further adjusted to include pro forma adjustments related to properties
and estimated cost savings yet-to-be-realized.



Adjusted EBITDA and LTM Adjusted EBITDA-Pro Forma are presented as
supplemental measures of the Company's performance and management believes
that Adjusted EBITDA and LTM Adjusted EBITDA-Pro Forma provide investors with
additional information and allow a better understanding of the results of
operational activities separate from the financial impact of decisions made
for the long-term benefit of the Company.



Because not all companies use identical calculations, the presentation of
Adjusted EBITDA and LTM Adjusted EBITDA-Pro Forma may not be comparable to
other similarly titled measures of other companies.



The following table reconciles net loss attributable to Caesars to Adjusted
EBITDA for the quarters ended December 31, 2012 and 2011:
(In millions)                     2012                       2011
Net loss attributable to Caesars  $       (469.7)            $     (220.6)
Interest expense, net of interest 521.8                      665.4
capitalized and interest income
Benefit for income taxes ^(a)     (335.5)                    (258.3)
Depreciation and amortization     239.2                      222.4
^(b)
EBITDA                            (44.2)                     408.9
Project opening costs, abandoned
projects and development costs    24.3                       7.1
^(c)
Acquisition and integration costs 3.9                        0.7
^ (d)
Gains on early extinguishments of (56.5)                     —
debt ^(e)
Net income/(loss) attributable to
non-controlling interests, net of 0.8                        22.1
(distributions) ^(f)
Impairments of intangible and     448.2                      5.7
tangible assets ^(g)
Non-cash expense for stock        12.1                       4.6
compensation benefits ^(h)
Adjustments for recoveries from
insurance claims for flood        —                          (7.4)
losses^(i)
Gain on sale of discontinued      (9.3)                      —
operations ^(j)
Other items^(k)                   40.8                       24.3
 Adjusted EBITDA ^  $       420.1              $     466.0







The following table reconciles net loss attributable to Caesars to Adjusted
EBITDA for the years ended December 31, 2012 and 2011, and net loss
attributable to Caesars to LTM Adjusted EBITDA-Pro Forma for the year ended
December 31, 2012.
(In millions)                         2012                     2011
Net loss attributable to Caesars      $     (1,497.5)          $    (687.6)
Interest expense, net of interest     2,079.2                  2,097.8
capitalized and interest income
Benefit for income taxes ^ (a)        (820.4)                  (506.9)
Depreciation and amortization ^ (b)   931.1                    881.3
EBITDA                                692.4                    1,784.6
Project opening costs, abandoned      71.7                     15.2
projects and development costs ^(c)
Acquisition and integration costs     6.1                      4.3
^(d)
Gains on early extinguishments of     (136.0)                  (47.9)
debt ^ (e)
Net income/(loss) attributable to
non-controlling interests, net of     (3.3)                    11.1
(distributions) ^(f)
Impairments of intangible and         1,168.7                  32.8
tangible assets ^(g)
Non-cash expense for stock            55.1                     22.2
compensation benefits ^(h)
 Adjustments for recoveries from  (6.6)                    6.6
insurance claims for flood losses^(i)
 Gain on sale of discontinued     (9.3)                    —
operations ^(j)
Other items^(k)                       98.9                     114.7
Adjusted EBITDA                       1,937.7                  $    1,943.6
Pro forma adjustments related to      3.8
properties ^(l)
Pro forma adjustment for estimated    212.8
cost savings yet-to-be-realized ^(m)
Pro forma adjustments for             (59.4)
discontinued operations ^ (n)
LTM Adjusted EBITDA-Pro Forma         $     2,094.9



     Amounts include the provision for income taxes related to discontinued
     operations of $45.5 million and $6.5 million for the fourth quarter of
^(a) 2012 and 2011, respectively, and the provision for income taxes related
     to discontinued operations of $50.1 million and $27.8 million for the
     full year 2012 and 2011, respectively.
     Amounts include depreciation and amortization related to discontinued
     operations of $9.6 million and $8.7 million for the fourth quarter of
^(b) 2012 and 2011, respectively, and depreciation and amortization related to
     discontinued operations of $27.9 million and $34.4 million for the full
     year of 2012 and 2011, respectively.
     Amounts represent pre-opening costs incurred in connection with new
^(c) property openings and expansion projects at existing properties, as well
     as any non-cash write-offs of abandoned development projects.
     Amounts include certain costs associated with development activities
^(d) which are infrequently occurring costs and associated with acquisition
     initiatives.
     Amounts represent the difference between the fair value of consideration
^(e) paid and the book value, net of deferred financing costs, of debt retired
     through debt extinguishment transactions, which are capital
     structure-related, rather than operational-type costs.
     Amounts represent minority owners' share of income/(loss) from the
^(f) Company's majority-owned consolidated subsidiaries, net of cash
     distributions to minority owners, which is a non cash item as it excludes
     any cash distributions.
     Amounts represent non-cash charges to impair intangible and tangible
     assets primarily resulting from changes in the business outlook in light
^(g) of economic conditions. Amounts include impairment charges related to
     discontinued operations of $101.0 million for the full year 2012. There
     were no impairment charges related to discontinued operations for the
     fourth quarters of 2012 and 2011, or for the full year 2011.
^(h) Amounts represent non-cash stock-based compensation expense related to
     stock options and restricted stock granted to the Company's employees.
^(i) Amounts represent adjustments for insurance claims related to lost
     profits during the floods that occurred in 2011.
^(j) Amount represents the gain recognized on the sale of the Harrah's St.
     Louis casino.
     Amounts represent add-backs and deductions from EBITDA, whether permitted
     and/or required under the indentures governing CEOC's existing notes and
     the credit agreement governing CEOC's senior secured credit facilities,
     included in arriving at LTM Adjusted EBITDA-Pro Forma but not separately
     identified. Such add-backs and deductions include litigation awards and
^(k) settlements, severance and relocation costs, permit remediation costs,
     gains and losses from disposals of assets, costs incurred in connection
     with implementing the Company's efficiency and cost-saving programs, the
     Company's insurance policy deductibles incurred as a result of
     catastrophic events such as floods and hurricanes, and non-cash equity in
     earnings of non-consolidated affiliates (net of distributions).
     Amounts represent the estimated annualized impact of operating results
^(l) related to newly completed construction projects, combined with the
     estimated annualized EBITDA impact associated with properties acquired
     during the period.
     Amount represents adjustments to reflect the impact of annualized
^(m) run-rate cost savings and anticipated future cost savings to be realized
     from the Company's announced Project Renewal and other profitability
     improvement and cost-savings programs.
     Per CEOC's senior secured credit facilities, EBITDA related to the
^(n) Company's discontinued operations are deducted from LTM Adjusted EBITDA -
     Pro Forma.



The following tables present the Consolidated Summary of Operations and
Supplemental Information for Caesars Entertainment Operating Company, Inc.
("CEOC"), a wholly owned subsidiary of Caesars Entertainment Corporation for
the periods indicated.





CAESARS ENTERTAINMENT OPERATING COMPANY, INC.

CONSOLIDATED SUMMARY OF OPERATIONS

(UNAUDITED)
                                 Quarter Ended         YearEnded December31,
                                 December 31,
(In millions)                    2012       2011       2012          2011
Net revenues                     $ 1,553.7  $ 1,580.5  $  6,479.9    $ 6,542.8
Property operating expenses      (1,194.6)  (1,223.2)  (4,946.6)     (5,045.1)
Depreciation and amortization    (139.1)    (133.3)    (555.0)       (521.7)
Write-downs, reserves, and
project opening costs, net of    (23.6)     (11.3)     (80.4)        (69.7)
recoveries
Intangible and tangible asset    (448.2)    (5.7)      (1,064.7)     (32.8)
impairment charges
Loss on interests in             (9.0)      (4.0)      (18.9)        (6.9)
non-consolidated affiliates
Corporate expense                (37.8)     (30.0)     (157.8)       (120.9)
Acquisition and integration      (4.0)      (0.6)      (5.8)         (3.5)
costs
Amortization of intangible       (27.3)     (24.2)     (105.7)       (97.1)
assets
(Loss)/income from operations    (329.9)    148.2      (455.0)       645.1
Interest expense, net of         (506.5)    (649.1)    (2,016.2)     (2,030.9)
interest capitalized
Other income, including interest 4.7        8.2        23.1          24.1
income
Loss from continuing operations  (831.7)    (492.7)    (2,448.1)     (1,361.7)
before income taxes
Benefit for income taxes         384.8      253.9      934.6         561.3
Loss from continuing operations, (446.9)    (238.8)    (1,513.5)     (800.4)
net of income taxes
Discontinued operations
Income/(loss) from discontinued  6.6        12.8       (59.4)        59.2
operations
Provision for income taxes       (45.5)     (6.5)      (50.1)        (27.8)
(Loss)/income from discontinued  (38.9)     6.3        (109.5)       31.4
operations, net of income taxes
Net loss                         (485.8)    (232.5)    (1,623.0)     (769.0)
Less: net income attributable to (2.7)      (14.4)     (4.4)         (10.4)
non-controlling interests
Net loss attributable to CEOC    $ (488.5)  $ (246.9)  $  (1,627.4)  $ (779.4)







CAESARS ENTERTAINMENT OPERATING COMPANY, INC.

SUPPLEMENTAL INFORMATION

RECONCILIATION OF NET LOSS ATTRIBUTABLE TO CAESARS ENTERTAINMENT

OPERATING COMPANY, INC. TO PROPERTY EBITDA

(UNAUDITED)
Property EBITDA is presented as a supplemental measure of CEOC's performance. Property EBITDA is defined as revenues
less property operating expenses and is comprised of net income/(loss) before (i) interest expense, net of interest
capitalized and interest income, (ii) (benefit)/provision for income taxes, (iii) depreciation and amortization,
(iv) corporate expenses, and (v) certain items that the Company does not consider indicative of CEOC's ongoing
operating performance at an operating property level. In evaluating Property EBITDA you should be aware that in the
future, CEOC may incur expenses that are the same or similar to some of the adjustments in this presentation. The
presentation of Property EBITDA should not be construed as an inference that CEOC's future results will be
unaffected by unusual or unexpected items.



Property EBITDA is a non-GAAP financial measure commonly used in the Company's industry and should not be construed
as an alternative to net income/(loss) as an indicator of operating performance or as an alternative to cash flow
provided by operating activities as a measure of liquidity (as determined in accordance with GAAP). Property EBITDA
may not be comparable to similarly titled measures reported by other companies within the industry. Property EBITDA
is presented because management uses Property EBITDA to measure performance and allocate resources, and believes
that Property EBITDA provides investors with additional information consistent with that used by management.



The following tables reconcile net loss attributable to CEOC to Property EBITDA for the periods indicated.


                 Quarter Ended December 31, 2012
                 Las       Atlantic    Louisiana/   Iowa/     Illinois/  Other    Managed,
                                                                                             Discontinued
(In millions)    Vegas     City        Mississippi  Missouri  Indiana    Nevada   Int'l and  Operations    Total
                                                                                  Other
                 Region    Region      Region       Region    Region     Region
Net loss
attributable to                                                                                            $ (488.5)
CEOC
Net income
attributable to                                                                                            2.7
non-controlling
interests
Net loss                                                                                                   (485.8)
Loss from
discontinued                                                                                               38.9
operations, net
of income taxes
Net loss from
continuing                                                                                                 (446.9)
operations, net
of income taxes
Benefit for                                                                                                (384.8)
income taxes
Loss from
continuing
operations                                                                                                 (831.7)
before income
taxes
Other income,
including                                                                                                  (4.7)
interest income
Interest
expense, net of                                                                                            506.5
interest
capitalized
Income/(loss)    $ 76.8    $ (472.7)   $   48.8     $  28.4   $  34.5    $ 35.4   $ (81.1)                 (329.9)
from operations
Depreciation and 40.6      32.4        19.8         8.1       19.1       5.5      13.6                     139.1
amortization
Amortization of
intangible       8.2       3.0         5.5          —         0.3        0.5      9.8                      27.3
assets
Intangible and
tangible asset   —         450.0       (21.8)       —         —          (29.0)   49.0                     448.2
impairment
charges
Write-downs,
reserves, and
project opening  9.7       4.9         1.7          0.1       —          0.3      6.9                      23.6
costs, net of
recoveries
Acquisition and
integration      —         —           —            —         —          —        4.0                      4.0
costs
Loss/(income) on
interests in     —         —           (0.2)        —         —          —        9.2                      9.0
non-consolidated
affiliates
Corporate        —         —           —            —         —          —        37.8                     37.8
expense
EBITDA
attributable to                                                                              $   16.2      16.2
discontinued
operations
Property EBITDA  $ 135.2   $ 17.6      $   53.9     $  36.6   $  53.8    $ 12.7   $ 49.3     $   16.2      $ 375.3





CAESARS ENTERTAINMENT OPERATING COMPANY, INC.

SUPPLEMENTAL INFORMATION

RECONCILIATION OF NET LOSS ATTRIBUTABLE TO CAESARS ENTERTAINMENT

OPERATING COMPANY, INC. TO PROPERTY EBITDA

(UNAUDITED)
                 Quarter Ended December 31, 2011
                 Las       Atlantic   Louisiana/   Iowa/     Illinois/  Other     Managed,
                                                                                            Discontinued
(In millions)    Vegas     City       Mississippi  Missouri  Indiana    Nevada    Int'l     Operations    Total
                                                                                  and
                 Region    Region     Region       Region    Region     Region    Other
Net loss
attributable to                                                                                           $ (246.9)
CEOC
Net income
attributable to                                                                                           14.4
non-controlling
interests
Net loss                                                                                                  (232.5)
Income from
discontinued                                                                                              (6.3)
operations, net
of income taxes
Net loss from
continuing                                                                                                (238.8)
operations, net
of income taxes
Benefit for                                                                                               (253.9)
income taxes
Loss from
continuing
operations                                                                                                (492.7)
before income
taxes
Other income,
including                                                                                                 (8.2)
interest income
Interest
expense, net of                                                                                           649.1
interest
capitalized
Income/(loss)    $ 88.5    $ (11.0)   $   16.0     $  25.9   $  35.6    $ (3.7)   $ (3.1)                 148.2
from operations
Depreciation and 36.6      32.3       18.2         7.6       19.0       5.3       14.3                    133.3
amortization
Amortization of
intangible       8.2       2.7        5.5          —         0.3        0.5       7.0                     24.2
assets
Intangible and
tangible asset   —         —          3.0          —         —          —         2.7                     5.7
impairment
charges
Write-downs,
reserves, and
project opening  (1.9)     2.1        4.2          (0.1)     (1.4)      0.4       8.0                     11.3
costs, net of
recoveries
Acquisition and
integration      —         —          —            —         —          —         0.6                     0.6
costs
Loss/(income) on
interests in     —         0.3        (0.2)        —         —          —         3.9                     4.0
non-consolidated
affiliates
Corporate        —         —          —            —         —          —         30.0                    30.0
expense
EBITDA
attributable to                                                                             $   21.9      21.9
discontinued
operations
Property EBITDA  $ 131.4   $ 26.4     $   46.8     $  33.4   $  53.5    $ 2.6     $ 63.2    $   21.9      $ 379.2



CAESARS ENTERTAINMENT OPERATING COMPANY, INC.

SUPPLEMENTAL INFORMATION

RECONCILIATION OF NET LOSS ATTRIBUTABLE TO CAESARS ENTERTAINMENT

OPERATING COMPANY, INC. TO PROPERTY EBITDA

(UNAUDITED)
                 Year Ended December 31, 2012
                 Las       Atlantic    Louisiana/   Iowa/     Illinois/  Other      Managed,
                                                                                                Discontinued
(In millions)    Vegas     City        Mississippi  Missouri  Indiana    Nevada     Int'l and   Operations    Total
                                                                                    Other
                 Region    Region      Region       Region    Region     Region
Net loss
attributable to                                                                                               $ (1,627.4)
CEOC
Net income
attributable to                                                                                               4.4
non-controlling
interests
Net loss                                                                                                      (1,623.0)
Loss from
discontinued                                                                                                  109.5
operations, net
of income taxes
Net loss from
continuing                                                                                                    (1,513.5)
operations, net
of income taxes
Benefit for                                                                                                   (934.6)
income taxes
Loss from
continuing
operations                                                                                                    (2,448.1)
before income
taxes
Other income,
including                                                                                                     (23.1)
interest income
Interest
expense, net of                                                                                               2,016.2
interest
capitalized
Income/(loss)    $ 220.5   $ (426.8)   $  (222.3)   $ 123.1   $  156.0   $ (45.4)   $ (260.1)                 (455.0)
from operations
Depreciation and 166.3     129.1       77.0         30.4      75.8       21.7       54.7                      555.0
amortization
Amortization of
intangible       32.7      11.8        22.1         —         1.0        2.2        35.9                      105.7
assets
Intangible and
tangible asset   —         450.0       334.7        —         —          74.0       206.0                     1,064.7
impairment
charges
Write-downs,
reserves, and
project opening  24.0      10.6        37.7         0.1       0.6        0.9        6.5                       80.4
costs, net of
recoveries
Acquisition and
integration      —         —           —            —         —          —          5.8                       5.8
costs
Loss/(income) on
interests in     —         1.1         (0.6)        —         —          —          18.4                      18.9
non-consolidated
affiliates
Corporate        —         —           —            —         —          —          157.8                     157.8
expense
EBITDA
attributable to                                                                                 $   69.5      69.5
discontinued
operations
Property EBITDA  $ 443.5   $ 175.9     $  248.5     $ 153.5   $  233.4   $ 53.4     $ 225.1     $   69.5      $ 1,602.8



CAESARS ENTERTAINMENT OPERATING COMPANY, INC.

SUPPLEMENTAL INFORMATION

RECONCILIATION OF NET LOSS ATTRIBUTABLE TO CAESARS ENTERTAINMENT

OPERATING COMPANY, INC. TO PROPERTY EBITDA

(UNAUDITED)
                 Year Ended December 31, 2011
                 Las       Atlantic  Louisiana/   Iowa/     Illinois/  Other    Managed,
                                                                                           Discontinued
(In millions)    Vegas     City      Mississippi  Missouri  Indiana    Nevada   Int'l and  Operations    Total
                                                                                Other
                 Region    Region    Region       Region    Region     Region
Net loss
attributable to                                                                                          $ (779.4)
CEOC
Net income
attributable to                                                                                          10.4
non-controlling
interests
Net loss                                                                                                 (769.0)
Income from
discontinued                                                                                             (31.4)
operations, net
of income taxes
Net loss from
continuing                                                                                               (800.4)
operations, net
of income taxes
Benefit for                                                                                              (561.3)
income taxes
Loss from
continuing
operations                                                                                               (1,361.7)
before income
taxes
Other income,
including                                                                                                (24.1)
interest income
Interest
expense, net of                                                                                          2,030.9
interest
capitalized
Income/(loss)    $ 270.6   $ 49.4    $  122.0     $ 105.6   $  145.8   $ 28.2   $ (76.5)                 645.1
from operations
Depreciation and 139.4     123.8     73.3         30.6      78.0       21.5     55.1                     521.7
amortization
Amortization of
intangible       32.7      10.9      21.9         —         1.4        2.2      28.0                     97.1
assets
Intangible and
tangible asset   —         —         3.0          —         —          —        29.8                     32.8
impairment
charges
Write-downs,
reserves, and
project opening  7.5       5.6       10.8         0.3       1.4        0.7      43.4                     69.7
costs, net of
recoveries
Acquisition and
integration      —         —         —            —         —          —        3.5                      3.5
costs
Loss/(income) on
interests in     —         1.2       (0.7)        —         —          —        6.4                      6.9
non-consolidated
affiliates
Corporate        —         —         —            —         —          —        120.9                    120.9
expense
EBITDA
attributable to                                                                            $   94.0      94.0
discontinued
operations
Property EBITDA  $ 450.2   $ 191.0   $  230.4     $ 136.4   $  226.5   $ 52.5   $ 210.7    $   94.0      $ 1,591.7





CAESARS ENTERTAINMENT OPERATING COMPANY, INC.

SUPPLEMENTAL INFORMATION

RECONCILIATION OF NET LOSS ATTRIBUTABLE TO CAESARS ENTERTAINMENT

OPERATING COMPANY, INC.

TO ADJUSTED EBITDA, LTM ADJUSTED EBITDA-PRO FORMA AND

LTM ADJUSTED EBITDA-PRO FORMA - CEOC RESTRICTED

(UNAUDITED)
Adjusted EBITDA is defined as EBITDA further adjusted to exclude certain
non-cash and other items required or permitted in calculating covenant
compliance under the indenture governing CEOC's the credit facility.



LTM Adjusted EBITDA-Pro Forma is defined as Adjusted EBITDA further adjusted
to include pro forma adjustments related to properties and estimated cost
savings yet-to-be-realized.



Adjusted EBITDA and LTM Adjusted EBITDA-Pro Forma are presented as
supplemental measures of CEOC's performance and management believes that
Adjusted EBITDA and LTM Adjusted EBITDA-Pro Forma provide investors with
additional information and allow a better understanding of the results of
operational activities separate from the financial impact of decisions made
for the long-term benefit of CEOC.



Adjusted EBITDA and LTM Adjusted EBITDA-Pro Forma include the results and
adjustments of CEOC on a consolidated basis without the exclusion of CEOC's
unrestricted subsidiaries, and therefore, are different than the calculations
used to determine compliance with debt covenants under the credit facility.
The reconciliation of net loss attributable to CEOC to LTM Adjusted EBITDA-Pro
Forma on the following page includes an additional calculation to exclude LTM
Adjusted EBITDA-Pro Forma of the unrestricted subsidiaries of CEOC resulting
in an amount used to determine compliance with debt covenants ("LTM Adjusted
EBITDA-Pro Forma - CEOC Restricted").



Because not all companies use identical calculations, the presentation of
CEOC's Adjusted EBITDA, LTM Adjusted EBITDA-Pro Forma, and LTM Adjusted
EBITDA-Pro Forma - CEOC Restricted may not be comparable to other similarly
titled measures of other companies.



The following table reconciles net loss attributable to CEOC to Adjusted
EBITDA for the fourth quarter of 2012 and 2011.
(In millions)                   2012                       2011
Net loss attributable to CEOC   $       (488.5)            $      (246.9)
Interest expense, net of
capitalized interest and        502.0                      641.0
interest income
Benefit for income taxes ^(a)   (339.3)                    (247.4)
Depreciation and amortization ^ 179.7                      169.4
(b)
EBITDA                          (146.1)                    316.1
Project opening costs,
abandoned projects and          8.4                        7.1
development costs ^(c)
Acquisition and integration     4.0                        0.6
costs ^ (d)
Net income/(loss) attributable
to non-controlling interests,   (0.3)                      11.3
net of (distributions) ^(e)
Impairments of intangible and   448.2                      5.7
tangible assets ^ (f)
Non-cash expense for stock      9.5                        4.4
compensation benefits ^(g)
Adjustments for recoveries from
insurance claims for flood      —                          (7.4)
losses^(h)
Gain on sale of discontinued    (9.3)                      —
operations ^(i)
Other items ^(j)                28.3                       13.5
Adjusted EBITDA ^               $       342.7              $      351.3







The following table reconciles net loss attributable to CEOC to Adjusted
EBITDA for the years ended December 31, 2012 and 2011, and net loss
attributable to CEOC to LTM Adjusted EBITDA-Pro Forma and LTM adjusted
EBITDA-Pro Forma - CEOC Restricted for the year ended December 31, 2012.
 (In millions)             2012                  2011
Net loss attributable to CEOC            $    (1,627.4)        $    (779.4)
Interest expense, net of capitalized     1,995.7               2,007.5
interest and interest income
Benefit for income taxes ^(a)            (884.5)               (533.5)
Depreciation and amortization ^ (b)      701.7                 665.3
EBITDA                                   185.5                 1,359.9
Project opening costs, abandoned         55.9                  14.6
projects and development costs ^(c)
Acquisition and integration costs ^ (d)  5.8                   3.5
Net income/(loss) attributable to
non-controlling interests, net of        (4.2)                 0.6
(distributions) ^(e)
Impairments of intangible and tangible   1,165.7               32.8
assets ^(f)
Non-cash expense for stock compensation  33.4                  21.3
benefits ^(g)
Adjustments for recoveries from          (6.6)                 6.6
insurance claims for flood losses^(h)
Gain on sale of discontinued operations  (9.3)                 —
^(i)
Other items ^(j)                         53.3                  74.5
Adjusted EBITDA                          1,479.5               $    1,513.8
Pro forma adjustments related to         3.8
properties ^(k)
Pro forma adjustment for estimated cost  152.2
savings yet-to-be-realized ^(l)
Pro forma adjustments for discontinued   (59.4)
operations ^ (m)
LTM Adjusted EBITDA-Pro Forma            1,576.1
LTM Adjusted EBITDA-Pro forma of CEOC's  (97.6)
unrestricted subsidiaries
LTM Adjusted EBITDA-Pro Forma - CEOC     $    1,478.5
Restricted



     Amounts include the provision for income taxes related to discontinued
     operations of $45.5 million and $6.5 million for the fourth quarter of
^(a) 2012 and 2011, respectively, and the provision for income taxes related
     to discontinued operations of $50.1 million and $27.8 million for the
     full year 2012 and 2011, respectively.
     Amounts include depreciation and amortization related to discontinued
     operations of $9.6 million and $8.7 million for the fourth quarter of
^(b) 2012 and 2011, respectively, and depreciation and amortization related to
     discontinued operations of $27.9 million and $34.4 million for the full
     year of 2012 and 2011, respectively.
     Amounts represent pre-opening costs incurred in connection with new
^(c) property openings and expansion projects at existing properties, as well
     as any non-cash write-offs of abandoned development projects.
     Amounts include certain costs associated with development activities
^(d) which are infrequently occurring costs and associated with acquisition
     initiatives.
     Amounts represent minority owners' share of income/(loss) from CEOC's
^(e) majority-owned consolidated subsidiaries, net of cash distributions to
     minority owners, which is a non cash item as it excludes any cash
     distributions.
     Amounts represent non-cash charges to impair intangible and tangible
     assets primarily resulting from changes in the business outlook in light
^(f) of economic conditions. Amounts include impairment charges related to
     discontinued operations of $101.0 million for the full year 2012. There
     were no impairment charges related to discontinued operations for the
     fourth quarters of 2012 and 2011, or for the full year 2011.
^(g) Amounts represent non-cash stock-based compensation expense related to
     stock options and restricted stock granted to CEOC's employees.
^(h) Amounts represent adjustments for insurance claims related to lost
     profits during the floods that occurred in 2011.
^(i) Amount represents the gain recognized on the sale of the Harrah's St.
     Louis casino.
     Amounts represent add-backs and deductions from EBITDA, whether permitted
     and/or required under the indentures governing CEOC's existing notes and
     the credit agreement governing CEOC's senior secured credit facilities,
     included in arriving at LTM Adjusted EBITDA-Pro Forma - CEOC Restricted
     but not separately identified. Such add-backs and deductions include
^(j) litigation awards and settlements, severance and relocation costs, permit
     remediation costs, gains and losses from disposals of assets, costs
     incurred in connection with implementing the Company's efficiency and
     cost-saving programs, CEOC's insurance policy deductibles incurred as a
     result of catastrophic events such as floods and hurricanes, and non-cash
     equity in earnings of non-consolidated affiliates (net of distributions).
     Amounts represent the estimated annualized impact of operating results
^(k) related to newly completed construction projects, combined with the
     estimated annualized EBITDA impact associated with properties acquired
     during the period.
     Amount represents adjustments of CEOC to reflect the impact of annualized
^(l) run-rate cost savings and anticipated future cost savings to be realized
     from the Company's announced Project Renewal and other profitability
     improvement and cost-savings programs.
     Per CEOC's senior secured credit facilities, EBITDA related to the
^(m) Company's discontinued operations are deducted from LTM Adjusted EBITDA -
     Pro Forma.



SOURCE Caesars Entertainment Corporation

Contact: Gary Thompson - Media, +1-702-407-6529 or Jacqueline Beato -
Investors, +1-702-407-6131, both of Caesars Entertainment Corporation