LARGO, Fla., May 20 /PRNewswire/ -- Diamondhead Casino Corporation (OTC Bulletin Board: DHCC), which intends to develop a land-based casino resort in Diamondhead, Mississippi, is pleased to report that it has appointed Mr. William Austin Lewis IV to its Board of Directors.

Mr. Lewis is the founder, owner, and Chief Executive Officer of the Lewis Asset Management Corp., an investment management company located in New York City. This company is the General Partner of the Lewis Opportunity Fund, LP and the LAM Opportunity Fund, Ltd., which together own approximately 3.6 million common shares of Diamondhead Casino Corporation. Prior to founding Lewis Asset Management Corp., Mr. Lewis held a variety of positions with investment firms, including Puglisi & Co., Thompson Davis & Co. and Branch Cabell & Company. Mr. Lewis holds a Bachelor of Science degree in financial economics from James Madison University.

Deborah A. Vitale, Chairman and CEO of Diamondhead Casino Corporation, commenting on the appointment, stated: "I am extremely pleased to welcome Mr. Lewis to the Board of Directors. I believe his investment experience and financial background should prove of great value to the Board which is periodically required to evaluate and analyze complex financial transactions and proposals."

Mr. Lewis, commenting on his appointment, stated: "I am complimented to have been named to the Board of Directors of Diamondhead Casino Corporation. The funds under my care and management own a significant amount of common stock in the Company and I am confident that this investment is well placed. In my opinion, the market is severely discounting the value of the land and the opportunities for development. I look forward to working with the management team at Diamondhead, as well as other interested parties, in developing this unique property and increasing the value of every shareholder's investment."

The Company remains in active discussions with viable entities and individual parties with respect to the development of a casino resort and hotel and accompanying restaurants, entertainment and retail facilities at its Diamondhead, Mississippi property. These discussions have been ongoing with parties who have the expertise and experience to design, develop, and operate a casino resort. In addition, Casinos Austria International Holding, GMBH, with whom the Company had a prior letter of intent, remains interested in the project. While there can be no assurance that any agreement will be consummated, the Company wants to assure its shareholders that there is significant interest in our gaming site and that the Company continues to work on their behalf towards a joint venture, lease, buyout, or sale of all or part of the property.

The Company is exploring its options with respect to its future financing needs. In recent years, the Company has managed to meet its financial needs through the sale of stock, the exercise of options, and by obtaining an unsecured line of credit from an unrelated third party. The current Board of Directors owns or controls over 10 million shares of the total voting common stock in the Company. Therefore, the interests and future hopes of the shareholders are well represented. Regardless of any financial hurdles this Company may face in the future, the Board has every intention of completing the Company's mission with respect to the development or sale of the Company's Diamondhead, Mississippi property.

The Company intends to keep its shareholders informed of any material developments with respect to the development of its 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 or partners, approximately 404 acres of land in Diamondhead, Mississippi. The Company intends to develop the property as a destination casino resort and hotel with condominiums and other amenities. 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 debt-free and lien-free. The property is 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 hundred feet from the mean high water line of certain bodies of water. The new law applies to the Diamondhead property.

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 performance, trends in 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. In connection with certain forward-looking statements contained in this release and those that may be made in the future, there are various factors that could cause actual results to differ materially from those set forth in any such forward-looking statements. The forward-looking statements contained in this release were prepared by management and are qualified by, and subject to, permitting, significant business, economic, financial, competitive, environmental, regulatory and other uncertainties and contingencies, all of which are difficult or impossible to predict and many of which are beyond the control of the Company. Accordingly, there can be no assurance that the forward-looking statements contained in this release will be realized. The forward-looking statements in this release reflect the opinion of the management as of the date of this release. Readers are hereby advised that developments subsequent to this release are likely to cause these statements to become outdated with the passage of time or other factors beyond the control of the Company. The Company does not intend, however, to update the guidance provided herein prior to its next release or unless otherwise required to do so. Readers of this release should consider these facts in evaluating the information contained herein. In addition, the business and operations of the Company are subject to substantial risks, including but not limited to risks relating to liquidity and cash flows, which increase the uncertainty inherent in the forward-looking statements contained in this release. The inclusion of the forward-looking statements contained in this release should not be regarded as a representation that the forward-looking statements contained in the release will be achieved. In light of the foregoing, readers of this release are cautioned not to place undue reliance on the forward-looking statements contained herein.

Additional information concerning the potential risk factors that could affect the Company's future performance are described from time to time in the Company's periodic reports filed with the SEC, including, but not limited to, its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

    For further information, contact:    Deborah Vitale, President    Diamondhead Casino Corporation    Office: (703) 683-6800    Cell: (703) 727-510-1412            or    Gregory Harrison, Vice-President    Diamondhead Casino Corporation    Office: (301) 948-7354    Cell: (301) 775-3602

SOURCE Diamondhead Casino Corporation