Trump, Diamondhead to Form JV for Mississippi Casino Resort

Trump Entertainment Resorts Inc. will join with Diamondhead Casino Corp. to develop, build, and operate a destination casino resort on a 404-acre tract in Diamondhead, Miss.

The companies have signed a letter of intent to form a joint venture partnership for the project, to be located on a parcel of land owned by the Mississippi Gaming Corp., a wholly owned subsidiary of Diamondhead.

Fronting Interstate 10 and the Bay of St. Louis, the property is zoned as a Special Use-Waterfront Gaming District by Hancock County. The casino property itself will occupy a minimum of 40 acres of the 404-acre site.

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.

"We believe a partnership with Trump Entertainment Resorts for this venture adds up to an ideal combination because of their experience, the value of the Trump brand, the location of our site on Interstate 10 and the vitality of the Gulf Coast market," said Deborah A. Vitale, the Chairman, Chief Executive Officer and President of Diamondhead.

"We have the land, the location and the desire to pursue a master plan for the entire tract that should not only enhance long term shareholder value, but which should significantly enhance the surrounding economy."

A spokesperson for Trump Entertainment Resorts expressed confidence that the area would be able to support a resort property of this type, despite the effects of Katrina and possible fears of future hurricanes.

"We believe the marketplace is very strong, and can support this type of venture," the spokesperson said. "We also are interested in being a partner in the rebuilding effort."
He also pointed to the property's location near a major highway as a particular asset. "It's a great location, right off Interstate 10, which essentially is the northern border." The spokesperson declined to provide further details about the project, including estimated cost, development timeframe and whether the individual hotel suites would be available to buyers as hotel condos, noting that the project was still in the preliminary stage.

We are focused on our corporate development initiatives and expanding the Trump brand into new markets," James Perry, president and CEO of Trump Entertainment, said. "We are excited about the prospect of bringing the Trump brand to the Gulf Coast, and we hope to join private and public entities in redeveloping the region."

About Trump Entertainment Resorts
Trump Entertainment Resorts, Inc. ("TER") is a leading gaming company that owns and operates three properties. TER's properties include Trump Taj Mahal Casino Resort and Trump Plaza Hotel and Casino, located on the Boardwalk in Atlantic City, New Jersey, and Trump Marina Hotel Casino, located in Atlantic City's Marina District.

Together, the properties comprise approximately 371,300 square feet of gaming space and 3,180 hotel rooms and suites. TER is the sole vehicle through which Donald J. Trump, TER's Chairman and largest stockholder, conducts gaming activities and strives to provide customers with outstanding casino resort and entertainment experiences consistent with the Donald J. Trump standard of excellence. Trump Entertainment Resorts, Inc. is separate and distinct from Mr. Trump's real estate and other holdings.

About Diamondhead Casino Corporation
Diamondhead Casino Corporation ("Diamondhead"), through its wholly-owned subsidiary, Mississippi Gaming Corporation, owns and intends to develop, in cooperation with a joint venture partner, approximately 404 acres of land in Diamondhead, Mississippi. Diamondhead intends to develop the property as a destination casino resort and hotel with condominiums and other amenities.

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