Europa Cruises Corporation Announces Second Quarter Results

Press Release
August 21, 2000
MADEIRA BEACH, FL -- Europa Cruises Corporation (OTCBB: KRUZ) has announced operating results for the second quarter of 2000. The Company reported a net loss after preferred dividends of $520,904 for the three months ending June 30, 2000, as compared to a net loss of $771,394 for the same period in 1999. The net loss per common share for the period ending June 30, 2000 was $0.02 per common share as compared to a net loss of $0.03 per common share for the same period in 1999.
Deborah A. Vitale, President and Chairman of the Board of Directors, commenting on the operating results for the second quarter stated: "The operating results reflect the fact that the Company is disengaging from the cruise-to-nowhere industry so as to focus its resources on the development of its Diamondhead, Mississippi site. During the second quarter, the M/V Europa Sky was out of operation and in drydock from June 5 to June 15, 2000, which resulted in an absence of revenue during that period. Operations in Madeira Beach were also hampered during the second quarter by tidal conditions and shoaling problems which resulted in the cancellation of a number of cruises and an unpredictable sailing schedule which contributed to a lower passenger count. Dredging has now been completed and there should be no further scheduling problems at the port. The Company, which recently subleased the Madeira Beach port and sold the M/V Europa Sky, expects to transfer operations in Madeira Beach to the new purchaser prior to the end of August."

The Company currently operates the M/V Europa Sky out of Madeira Beach, Florida. The Company offers day and evening gambling cruises which include Las Vegas style gaming, including blackjack, slot machines, craps, and roulette, in addition to dining, dancing and entertainment. The Company recently subleased its Madeira Beach port and sold the M/V Europa Sky to Stardancer Casino, Inc.

The Company, through its wholly-owned subsidiary, Casino World, Inc., intends to build a destination casino resort and hotel at its 404 acre site on the Bay of St. Louis in Diamondhead, Mississippi. The site, which is located immediately off Interstate 10, is adjacent to a site on which Mandalay Resort Group, previously known as Circus Circus Enterprises, Inc, is also expected to develop a destination casino resort and hotel.

The business of the Company is subject to risks and uncertainties. Except for historical statements contained herein, the statements made in this release constitute forward-looking statements that involve risks and uncertainties. The development of the Diamondhead, Mississippi project is subject to risks and uncertainties which include those relating to permitting, financing, the activities of environmental groups, the outcome of litigation and the actions of federal, state, or local governments and agencies. The Company may be affected by some or all of these factors and other risks and uncertainties, many of which are beyond the Company's control.

Contact: Deborah Vitale, President, 727-393-2885, ext. 0, or John R. Duber, Director of Investor Relations, 440-331-0194, both of Europa Cruises Corporation

SOURCE: Europa Cruises Corporation