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Diamondhead casino resort deal

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June 30, 2008

GULF COAST, MS - Diamondhead Casino Corporation signed a letter of intent with Casinos Austria to develop and operate a casino resort in Diamondhead, Mississippi.

Diamondhead Casino's president, Deborah Vitale, said: "We are pleased to be working towards a partnership with Casinos Austria.

"We have enjoyed a long-term relationship with Casinos Austria and know the firm to be a quality organization with extensive gaming experience and expertise in the international gaming industry.

"Assuming a successful due diligence period and a subsequent definitive agreement between our two companies, this will mark the culmination of our best efforts to find the right partner with which to develop the casino project."

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