Diamondhead Casino Corporation and Trump Entertainment Resorts (Nasdaq:
TRMP) announced today that they have extended to October 23, 2006, the terms
of a letter of intent signed on June 8, 2006, pursuant to which the parties
intend to form a joint venture partnership to develop, build and operate a
destination casino resort in Diamondhead, Mississippi. The parties are
pleased with the progress, accomplishments, and results obtained thus far
and are currently in the process of preparing a master plan and preliminary
project design concepts. While the parties have completed substantial due
diligence, including a new mean high water line survey and other engineering
surveys and studies, additional time is required to complete the required
legal and remaining due diligence. The joint venture would cover a minimum
of forty acres within a 404-acre tract of land owned by Mississippi Gaming
Corporation, a wholly-owned subsidiary of Diamondhead. The Diamondhead tract
fronts Interstate 10 for approximately two miles and the Bay of St. Louis
for approximately two miles and is located in Hancock County, Mississippi.
The property is zoned as a Special Use District-Waterfront Gaming District
by Hancock County. On October 17, 2005, following Hurricane Katrina,
Mississippi Governor Haley Barbour signed a bill into law that permits
casinos to be built on land up to 800-feet from the mean high water line of
certain bodies of water. The new law applies to the Diamondhead property.
The formation of a joint venture and development of this project are subject
to certain conditions including, but not limited to, further due diligence
and receipt of regulatory and other approvals and permits.