Diamond I Finds Encouragement in 12.5% Increase in Nevada May Casino Winnings; Long-term Forecasts Continue to Show Significant Industry Growth.

LAS VEGAS -- Diamond I, Inc. (OTCBB:DMOI), a developer of wireless gaming products, issued a statement today regarding the impressive growth in Nevada May 2005 Casino Winnings announced by the Nevada state regulators. Including the new Wynn Las Vegas resort, Las Vegas casinos won $1.02 billion from gamblers in May 2005, a 12.5% increase jump from a year earlier, state regulators said. Because May 2004 included an extra Saturday, the Nevada state regulators indicated that these results are particularly impressive.

"These Nevada numbers offer our company great encouragement as we continue our efforts in obtaining approval for our WifiCasino GS(TM) wireless gambling system in Nevada and elsewhere," said David Loflin, CEO of Diamond I. "These May results certainly are in line with the recent gaming industry report and forecast by PricewaterhouseCoopers, and we expect that the gaming industry will, for the foreseeable future, continue its impressive growth."

According to the Nevada regulators, revenue on the Las Vegas Strip rose 14.8% to $538.8 million; Downtown Las Vegas revenue fell 3.3% to $58.1 million; and North Las Vegas revenue rose 41.8% to $29.4 million. Reno area revenue fell 2.8% to $65.2 million.

Recent Industry Reports

Recently published reports and forecasts indicate that the gaming industry is booming. According to the Global Entertainment and Media Outlook Study released by PricewaterhouseCoopers, casino and "racino" gambling revenues in the U.S. will reach $64.1 billion in 2009, up from $47.3 billion in 2004, and will reach $100 billion globally.

The PricewaterhouseCoopers report indicates that casino (and "racino") gambling revenues in Las Vegas will increase to $15.8 billion by 2009, to $6.3 billion in Atlantic City and to $16 billion in the regional casinos of the Midwest and South. In addition, American Indian casinos will experience a large increase in revenues, from $18.5 billion in 2004 to $26 billion in 2009.

About Diamond I, Inc.

Diamond I, Inc. is a development-stage company that develops wireless gaming products, including a hand-held Wi-Fi-based gaming system for on-premises use by casinos/resorts, known as "WifiCasino GS Concierge and Gaming System"(TM). The company also provides Wi-Fi Internet access in Louisiana, Arizona, Maryland, Pennsylvania, Nebraska and Washington, D.C. The term "Wi-Fi" (wireless fidelity) refers to an industry standard for wireless equipment that meets published 802.11(x) standards. Wi-Fi equipment operates in unlicensed spectra, such as 2.4 and 5.8 Ghz.

Diamond I seeks to secure a Las Vegas hotel/casino to serve as the demonstration site for its WifiCasino GS, in conjunction with its application for a gaming license in Nevada. Currently, Diamond I is in negotiations with one or more nationally-known Las Vegas casinos to serve as the demonstration facility for its system. Also, Diamond I is working to secure one or more cruise ships on which to implement a WifiCasino GS system; Diamond I has had preliminary discussions with the owners of one or more cruise ships. Diamond I has also had preliminary discussions with the owners of one or more horse racing facilities in the United States and dog and horse racing facilities outside the United States, with respect to its establishing a WifiCasino GS system on such a facility.

Forward-Looking Statements

Certain statements in these interviews and news releases may constitute "forward looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Such forward looking statements involve risk, uncertainties, and other factors, which may cause the actual results, performance, or achievement expressed or implied by such forward looking statements to differ materially from the forward looking statements. Certain statements contained in the interviews are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve numerous risks and uncertainties, including, but not limited to, risks and uncertainties pertaining to development of Diamond I's products and services and markets for such products and services, the timing and level of customer orders, competitive products and service, changes in economic conditions and other risks and uncertainties. Although Diamond I believes the statements are reasonable, it can give no assurance that such expectations will prove correct. Diamond I cautions that any forward-looking statements contained herein are not a guarantee of future performance and that actual results may differ materially.