Letter of Intent for Mississippi Casino Development
Diamondhead Owns 404 Acres on the Bay of St. Louis
|ATLANTIC CITY, N.J. - June 12, 2006 -- Trump Entertainment Resorts,
Inc. (NASDAQ: TRMP) and Diamondhead Casino Corporation (OTCBB: DHCC) announced
today that they have signed a letter of intent 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 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.
"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."
"As we renovate and re-brand our Atlantic City properties, we are also focused on our corporate development initiatives and expanding the Trump brand into new markets," said James B. Perry, President and Chief Executive Officer of Trump Entertainment Resorts, Inc. "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. We believe that this is a great opportunity to create value for our company, our shareholders and the citizens of Mississippi."
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.
About Trump Entertainment Resorts
About Diamondhead Casino Corporation
Cautionary Statement Regarding Forward-Looking Statements
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements so long as those statements are identified as forward-looking and are accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those projected in such statements.
All statements, trend analysis and other information contained in this release relative to the parties' performance, trends in the parties' operations or financial results, plans, expectations, estimates and beliefs, as well as other statements including words such as "anticipate," "believe," "plan," "estimate," "expect," "intend," "will," "could" and other similar expressions, constitute forward-looking statements under the Private Securities Litigation Reform Act of 1995.
Trump Entertainment Resorts
|Also See:||Trump Entertainment Resorts, Inc. Reports a Net Loss of $26.5 million from Date of Reorganization through December 31, 2005; Operating and Cultural Changes at the Proerties Will Take 18 months Before Benefits Seen / March 2006|
|MGM Mirage Will Open a $700 million Hotel and Casino Alongside Foxwoods Resort Casino in Connecticut / April 2006|