CAI EXTENDS LETTER OF INTENT WITH DIAMONDHEAD CASINO CORP.

For immediate release

Vienna, 24 September 2008 --- Casinos Austria International today announced that it has extended the terms of a Letter of Intent with Diamondhead Casino Corporation to form a joint venture partnership to develop, build and operate a destination casino resort in Diamondhead, Mississippi, USA. The non-binding Letter of Intent, which expired last September 21, was extended through December 21, 2008. While Casinos Austria International has completed substantial due diligence and is pleased with the results and findings obtained to date, it requires additional time to complete its remaining due diligence.

Paul Herzfeld, CEO of Casinos Austria International, commented on the extension: "We are excited about the prospects for the Diamondhead site and are in the midst of conducting our legal, engineering and related due diligence. We have a long history and long working relationship with Diamondhead and its current President and CFO, which gives us an added level of comfort. However, recent hurricanes and adverse weather conditions in the area have interfered with our ability to conduct the required due diligence."

The joint venture, if consummated, would cover 50 acres within a 404-acre tract of land owned by Mississippi Gaming Corporation, a wholly-owned subsidiary of Diamondhead. The 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 debt-free, lien-free and zoned as a Special Use District-Waterfront Gaming District by Hancock County. On October 17, 2005, following Hurricane Katrina, Mississippi passed legislation allowing casinos to be built up to 800 feet from the mean high water line of certain bodies of water. The new law applies to the Diamondhead property.

About Diamondhead Casino Corporation
Diamondhead Casino Corporation, 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. It intends to develop the property as a destination casino resort and hotel with condominiums and other amenities.

About Casinos Austria International
Founded in 1977, Casinos Austria International is a leading player in the international casino industry. As of September 2008, CAI and its parent company, Casinos Austria AG, operated 79 casinos in 19 countries and on 13 cruise liners. In 2007, the Casinos Austria Group posted 1.37 billion euro in revenues (win, registered tips, entrance) from its casino sector activities (+9.4%). Together, its casinos around the globe welcomed 19.9 million visitors (+4.7%) and employed over 13,200 staff (+25.4%).

For further information, please contact:

Hermann Pamminger
Corporate Head of Marketing
Casinos Austria International
Phone: +43 1 534 40 524
E-mail: hermann.pamminger@casinos.at

Gregory Harrison
Vice-President
Diamondhead Casino Corporation
Phone: +1 301 948-7354