OKLAHOMA CITY, May 17, 2000 /PRNewswire via COMTEX/ --  Joseph Cala, Chairman
and CEO of Cala Corporation (OTC Bulletin Board: CCAA) today announced that Cala
Corporation has received preliminary approval to purchase Costanzo Industries of
Italy. Costanzo Industries is the third largest builder of Italian resorts and
hotels. Costanzo had previously partnered with Fiat in building high speed train
facilities in Italy and is considered a major force in the Southern European
construction industry.
 
The acquisition, which is being overseen by the Italian ministry of Industry,
was granted local approval by an Italian government trustee on May 15, 2000. The
two-tier approval process will continue today in Rome, where Mr. Cala will seek
a necessary final approval by the Italian Prefetto presiding over this
acquisition.
 
The management of Costanzo welcomed Cala Corporation's bid for acquisition.
Costanzo has yearly revenues of several hundred million dollars and pending
contracts valued at over $500 million. Cala Corporation has agreed to fulfill
all pending contracts, should its acquisition of Costanzo be accepted. The
accounting firm of Arthur Anderson has been assisting Costanzo to provide
detailed financial information to Cala Corporation.
 
Mr. Cala stated that the acquisition of Costanzo would serve several distinct
purposes. To begin with, it would provide a necessary alliance to build the
Undersea Resort and Casino project. Secondly, the purchase of Costanzo would
present a means to building and acquiring other hotel properties. Finally, the
commitment to honor Costanzo's pending contracts would provide Cala Corporation
with an excellent revenue source.
 
About Cala Corporation
 
Cala Corporation is a developer of international hospitality businesses with a
corporate emphasis on the ownership, operation and management of hotels, resorts
and casinos. Cala Corporation is currently developing the Undersea Resort and
Hotel project with proposed locations throughout the world.
 
The information in this news release includes certain forward-looking statements
as defined in the "Safe Harbor" provision of the Private Securities Litigation
Reform Act of 1995. These statements are based upon assumptions that are subject
to significant risks and uncertainties. Although the Company believes that the
expectations reflected in forward-looking statements are reasonable, it can give
no assurance that the expectations of any of its forward-looking statements will
prove to be correct. This press release was prepared on behalf of the Board of
Directors, which accepts full responsibility for its contents.
 
For further information on Cala Corporation, please contact (405) 235-4960 or
e-mail info@calacorporation.com.
 
SOURCE Cala Corporation
 
 CONTACT:          Cala Corporation, 405-235-4960, or info@calacorporation.com
 
 URL:              calacorporation.com