EXHIBIT 99.1

NEWS FOR IMMEDIATE RELEASE

August 7, 2007



|         |  |               
|-------- |  | --------------
|CONTACT: |  | Laura Tuthill 
|         |  | (949) 759-5900

AMBASSADORS INTERNATIONAL, INC. REPORTS SECOND QUARTER OF 2007

FINANCIAL RESULTS

NEWPORT BEACH, CA, August 7,
2007 - Ambassadors International, Inc. (NasdaqGM:AMIE) (the Company) reported revenue of $80.4 million for the three months ended June 30, 2007, up from $29.7 million for the three months ended June 30, 2006. In addition, the
Company reported net income of $5.8 million, or $0.48 per diluted share, for the three months ended June 30, 2007, compared to net income of $1.7 million, or $0.15 per diluted share, for the three months ended June 30, 2006.

Our revenues increased $50.7 million in the second quarter of 2007 compared to 2006. For the quarter ended June 30, 2007, the increase in revenue was primarily
related to increases within our marine and cruise operations. Our marine revenues increased $26.3 million related to the operations of Bellingham Marine that we acquired in July 2006. Our cruise revenue increased $25.4 million due to the operations
acquired throughout 2006 and the Windstar Cruises acquisition in April 2007. During the quarter ended June 30, 2007, we operated nine ships compared to four ships operated during the quarter ended June 30, 2006. Our travel, incentive and
event related revenue also increased $1.4 million due to an increase in business volume compared to the second quarter of 2006. These increases were partially offset by decreased net insurance premiums earned due to decreased business in 2007.

Our costs and operating expenses increased $53.7 million in the second quarter of 2007 compared to 2006. Our cruise operating expenses and other selling,
general and administration and depreciation expenses associated with our cruise segment increased $30.6 million related to the increase in ships operated in each period. In addition, cost of marine revenue increased $20.9 million related to revenues
generated from our new construction and shipyard operations which commenced during 2006.

On May 14, 2007, the Empress of the North ran aground
in Southeast Alaska. No passengers or crew were injured during the incident. The ship was in dry dock for damage inspection and repairs for approximately eight weeks. As of June 30, 2007, we recorded in cruise operating expenses approximately
$5.2 million in costs associated with ship repairs, passenger relocation and crew expenses incurred as a result of the incident. These expenses are offset by estimated insurance recoveries of $4.1 million. We estimate the overall negative impact of
the cancelled revenue related to this incident to be approximately $6.2 million.



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We reported other expense for the three months ended June 30,
2007 of $0.5 million, compared to other income of $1.0 million for the three months ended June 30, 2006. The decline was mainly the result of approximately $0.4 million of additional interest expense related to long-term debt assumed in our
cruise acquisitions consummated in the first and second quarters of 2006 and $1.0 million of interest expense on our convertible notes issued in April 2007. In the second quarter of 2006, we were favorably impacted by realized gains of $0.7 million
resulting from sales of available-for-sale securities, no comparable activity was completed in the second quarter of 2007. These decreases in other income were offset by $0.6 million of insurance recoveries received under our business interruption
insurance which is a partial payment on our outstanding insurance claims for the Mississippi Queen® relating to the norovirus incident which occurred in October 2006.

We recorded an income tax benefit of $7.7 million for the three months ended June 30, 2007, compared to an income tax provision of $1.0 million for the three months
ended June 30, 2006. The effective tax benefit rate for the three months ended June 30, 2007 was 402%, compared to a tax rate of 37% for the three months ended June 30, 2006. The change in the effective tax rate is related to the tax
treatment associated with our international operations, primarily related to Windstar Cruises which was acquired in April 2007. We believe that substantially all of Windstar Cruises income, with the exception of our U.S. source income
principally from the transportation, hotel and tour business, was derived from, or incidental to, the international operation of ships, and is therefore exempt from U.S. federal income taxes.

Recent News

On August 1, 2007, we announced that the current Congressional exemption on the Delta Queen®would not be extended beyond 2008 and announced 2008 as the farewell season for theDelta Queen®. The Company reviewed the remaining
vessel value of the Delta Queen® for impairment noting that the asset was recoverable and no impairment charge was required as of June 30, 2007.

Conference Call

Ambassadors International, Inc. will host a
conference call to discuss the results of operations on Wednesday, August 8, 2007 at 8:30 a.m. Pacific Daylight Time. Interested parties may join the call by dialing 866-632-2359, conference ID #: ANALYST. The conference call may also be joined
via the Internet at www.ambassadors.com. For conference replay access, parties may dial 800-642-1687, conference ID #: 7356872 and follow the prompts or visit www.ambassadors.com. Post-call replay will be available two hours following
the completion of our call.

About Ambassadors International, Inc.

Ambassadors International, Inc. is a cruise, marine, and travel and event company. The Company operates Windstar Cruises, an international, luxury cruise line and Majestic America Line, a North American river and
coastal cruising company. The Company is also a global provider of construction and consulting services to marina owners. In addition, the Company provides travel and event services. The Company is headquartered in Newport Beach, California. In this
press release, any reference to Company, Ambassadors, management, we, us and our refers to Ambassadors International, Inc. and its management team.



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Forward-Looking Statements

This press release contains forward-looking statements, including without limitation, statements regarding anticipated U.S. tax exemptions and potential insurance recoveries, that involve various risks and uncertainties. The forward-looking
statements contained in this release are based on our current expectations and entail various risks and uncertainties that could cause our actual results to differ materially from those suggested in our forward-looking statements. We believe that
such risks and uncertainties include, among others, general economic and business conditions; overall conditions in the cruise, marine, travel and insurance industries; potential claims related to our reinsurance business; further declines in the
fair market value of our investments; lower investment yields; unexpected events that disrupt the operations of our cruise operations; environmental related factors; our ability to successfully integrate the operations of companies or businesses we
acquire and realize the expected benefits of our acquisitions; our ability to successfully and efficiently operate the businesses that we acquire; our ability to compete effectively in the U.S. and international cruise markets; our ability to
compete effectively in the U.S. and international marina construction markets, including our ability to obtain construction contracts; our ability to effectively and efficiently manage our rapid growth; our ability to continue to identify attractive
acquisition targets and consummate future acquisitions on favorable terms; our ability to accurately estimate contract risks; our ability to service our debt and other factors discussed more specifically in our annual, quarterly and periodic filings
with the Securities and Exchange Commission on Form 10-K, 10-Q and 8-K. Any projections provided in this release are based on limited information currently available to management and are subject to change. We are providing this information as of
the date of this release and do not undertake any obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise.

Additional Information

For further information please contact: Laura
Tuthill of Ambassadors International, Inc. at (949) 759-5900.



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Summary financial information is as follows (in thousands, except per share amounts):



|                                                         |  |                            |        |   |      |   |        |  
|-------------------------------------------------------- |  | -------------------------- | ------ | - | ---- | - | ------ | -
|                                                         |  | Three Months EndedJune 30, |       
|                                                         |  | 2007                       |        |   | 2006 |  
|                                                         |  | (unaudited)                |       
|Revenues:                                                |  |                            |        |   |      |   |        |  
|Passenger ticket revenue                                 |  | $                          | 39,800 |   |      | $ | 19,089 |  
|Onboard and other cruise revenue                         |  |                            | 7,391  |   |      |   | 2,680  |  
|Marine revenue                                           |  |                            | 28,565 |   |      |   | 2,250  |  
|Travel, incentive and event related                      |  |                            | 4,476  |   |      |   | 3,108  |  
|Net insurance premiums earned                            |  |                            | 168    |   |      |   | 2,536  |  
|                                                         |  |                            |        |   |      |   |        |  
|                                                         |  |                            | 80,400 |   |      |   | 29,663 |  
|                                                         |  |                            |        |   |      |   |        |  
|Costs and operating expenses:                            |  |                            |        |   |      |   |        |  
|Cruise operating expenses                                |  |                            | 32,886 |   |      |   | 12,228 |  
|Cost of marine revenue                                   |  |                            | 22,007 |   |      |   | 1,082  |  
|Selling and tour promotion                               |  |                            | 9,180  |   |      |   | 3,654  |  
|General and administrative                               |  |                            | 14,283 |   |      |   | 7,716  |  
|Depreciation and amortization                            |  |                            | 3,128  |   |      |   | 921    |  
|Loss and loss adjustment expenses                        |  |                            | 96     |   |      |   | 1,492  |  
|Insurance acquisition costs and other operating expenses |  |                            | 181    |   |      |   | 990    |  
|                                                         |  |                            |        |   |      |   |        |  
|                                                         |  |                            | 81,761 |   |      |   | 28,083 |  
|                                                         |  |                            |        |   |      |   |        |  
|Operating income (loss)                                  |  |                            | (1,361 | ) |      |   | 1,580  |  
|                                                         |  |                            |        |   |      |   |        |  
|Other income (expense):                                  |  |                            |        |   |      |   |        |  
|Interest and dividend income                             |  |                            | 1,067  |   |      |   | 894    |  
|Interest expense                                         |  |                            | (2,190 | ) |      |   | (728   | )
|Realized gains on sale of available-for-sale securities  |  |                            |       |   |      |   | 735    |  
|Other, net                                               |  |                            | 574    |   |      |   | 146    |  
|                                                         |  |                            |        |   |      |   |        |  
|                                                         |  |                            | (549   | ) |      |   | 1,047  |  
|                                                         |  |                            |        |   |      |   |        |  
|Income (loss) before benefit for income taxes            |  |                            | (1,910 | ) |      |   | 2,627  |  
|Provision (benefit) for income taxes                     |  |                            | (7,680 | ) |      |   | 967    |  
|                                                         |  |                            |        |   |      |   |        |  
|Net income                                               |  | $                          | 5,770  |   |      | $ | 1,660  |  
|                                                         |  |                            |        |   |      |   |        |  
|Earnings per share:                                      |  |                            |        |   |      |   |        |  
|Basic                                                    |  | $                          | 0.52   |   |      | $ | 0.15   |  
|Diluted                                                  |  | $                          | 0.48   |   |      | $ | 0.15   |  
|                                                         |  |                           
|Weighted-average common shares outstanding:              |  |                            |        |   |      |   |        |  
|Basic                                                    |  |                            | 11,083 |   |      |   | 10,898 |  
|Diluted                                                  |  |                            | 13,349 |   |      |   | 11,376 |  



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|                                                               |  |                           |         |   |      |   |        |  
|-------------------------------------------------------------- |  | ------------------------- | ------- | - | ---- | - | ------ | -
|                                                               |  | Six Months Ended June 30, |        
|                                                               |  | 2007                      |         |   | 2006 |  
|                                                               |  | (unaudited)               |        
|Revenues:                                                      |  |                           |         |   |      |   |        |  
|Passenger ticket revenue                                       |  | $                         | 44,468  |   |      | $ | 20,375 |  
|Onboard and other cruise revenue                               |  |                           | 7,938   |   |      |   | 2,789  |  
|Marine revenue                                                 |  |                           | 52,049  |   |      |   | 2,420  |  
|Travel, incentive and event related                            |  |                           | 8,000   |   |      |   | 7,377  |  
|Net insurance premiums earned                                  |  |                           | 822     |   |      |   | 5,020  |  
|                                                               |  |                           |         |   |      |   |        |  
|                                                               |  |                           | 113,277 |   |      |   | 37,981 |  
|                                                               |  |                           |         |   |      |   |        |  
|Costs and operating expenses:                                  |  |                           |         |   |      |   |        |  
|Cruise operating expenses                                      |  |                           | 39,656  |   |      |   | 14,557 |  
|Cost of marine revenue                                         |  |                           | 41,451  |   |      |   | 1,082  |  
|Selling and tour promotion                                     |  |                           | 15,948  |   |      |   | 5,193  |  
|General and administrative                                     |  |                           | 25,603  |   |      |   | 12,559 |  
|Depreciation and amortization                                  |  |                           | 4,688   |   |      |   | 1,392  |  
|Loss and loss adjustment expenses                              |  |                           | 474     |   |      |   | 2,857  |  
|Insurance acquisition costs and other operating expenses       |  |                           | 518     |   |      |   | 2,033  |  
|                                                               |  |                           |         |   |      |   |        |  
|                                                               |  |                           | 128,338 |   |      |   | 39,673 |  
|                                                               |  |                           |         |   |      |   |        |  
|Operating loss                                                 |  |                           | (15,061 | ) |      |   | (1,692 | )
|                                                               |  |                           |         |   |      |   |        |  
|Other income (expense):                                        |  |                           |         |   |      |   |        |  
|Interest and dividend income                                   |  |                           | 1,759   |   |      |   | 1,835  |  
|Interest expense                                               |  |                           | (3,195  | ) |      |   | (1,095 | )
|Realized gains (loss) on sale of available-for-sale securities |  |                           | (48     | ) |      |   | 747    |  
|Other, net                                                     |  |                           | 384     |   |      |   | 72     |  
|                                                               |  |                           |         |   |      |   |        |  
|                                                               |  |                           | (1,100  | ) |      |   | 1,559  |  
|                                                               |  |                           |         |   |      |   |        |  
|Loss before benefit for income taxes                           |  |                           | (16,161 | ) |      |   | (133   | )
|Benefit for income taxes                                       |  |                           | (13,369 | ) |      |   | (73    | )
|                                                               |  |                           |         |   |      |   |        |  
|Net loss                                                       |  | $                         | (2,792  | ) |      | $ | (60    | )
|                                                               |  |                           |         |   |      |   |        |  
|Loss per share:                                                |  |                           |         |   |      |   |        |  
|Basic                                                          |  | $                         | (0.25   | ) |      | $ | (0.01  | )
|Diluted                                                        |  | $                         | (0.25   | ) |      | $ | (0.01  | )
|                                                               |  |                          
|Weighted-average common shares outstanding:                    |  |                           |         |   |      |   |        |  
|Basic                                                          |  |                           | 11,086  |   |      |   | 10,597 |  
|Diluted                                                        |  |                           | 11,086  |   |      |   | 10,597 |  



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In January 2007, we realigned our business segments. As of January 2007, we began reporting the following business
segments: (i) Cruise, which includes the operations of Ambassadors Cruise Group, LLC (ii) Marine, which includes the operations of Ambassadors Marine Group, LLC, (iii) Travel and Events, which includes the operations of Ambassadors,
LLC, and (iv) Corporate and Other, which consists of general corporate assets (primarily cash and cash equivalents and investments), the operations of Cypress Reinsurance, Ltd and other activities which are not directly related to our operating
segments.

Summary of business segment information is as follows (in thousands):



|                              |  |                             |        |   |                           |   |        |      |  |   |         |   |  |   |        |  
|----------------------------- |  | --------------------------- | ------ | - | ------------------------- | - | ------ | ---- |  | - | ------- | - |  | - | ------ | -
|                              |  | Three Months Ended June 30, |        |   | Six Months Ended June 30, |  
|                              |  | 2007                        |        |   | 2006                      |   |        | 2007 |  |   | 2006    |  
|                              |  | (unaudited)                 |        |   | (unaudited)               |  
|Revenue:                      |  |                             |        |   |                           |   |        |      |  |   |         |   |  |   |        |  
|Cruise                        |  | $                           | 47,191 |   |                           | $ | 21,769 |      |  | $ | 52,406  |   |  | $ | 23,164 |  
|Marine                        |  |                             | 28,565 |   |                           |   | 2,250  |      |  |   | 52,049  |   |  |   | 2,420  |  
|Travel and Events             |  |                             | 4,476  |   |                           |   | 3,108  |      |  |   | 8,000   |   |  |   | 7,377  |  
|Corporate and Other           |  |                             | 168    |   |                           |   | 2,536  |      |  |   | 822     |   |  |   | 5,020  |  
|                              |  |                             |        |   |                           |   |        |      |  |   |         |   |  |   |        |  
|Total revenue                 |  | $                           | 80,400 |   |                           | $ | 29,663 |      |  | $ | 113,277 |   |  | $ | 37,981 |  
|                              |  |                             |        |   |                           |   |        |      |  |   |         |   |  |   |        |  
|Operating income (loss):      |  |                             |        |   |                           |   |        |      |  |   |         |   |  |   |        |  
|Cruise                        |  | $                           | (2,982 | ) |                           | $ | 2,241  |      |  | $ | (15,524 | ) |  | $ | (1,433 | )
|Marine                        |  |                             | 1,595  |   |                           |   | 248    |      |  |   | 1,821   |   |  |   | 181    |  
|Travel and Events             |  |                             | 1,272  |   |                           |   | 132    |      |  |   | 1,633   |   |  |   | 1,560  |  
|Corporate and Other           |  |                             | (1,246 | ) |                           |   | (1,041 | )    |  |   | (2,991  | ) |  |   | (2,000 | )
|                              |  |                             |        |   |                           |   |        |      |  |   |         |   |  |   |        |  
|Total operating income (loss) |  | $                           | (1,361 | ) |                           | $ | 1,580  |      |  | $ | (15,061 | ) |  | $ | (1,692 | )
|                              |  |                             |        |   |                           |   |        |      |  |   |         |   |  |   |        |  



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Summary balance sheet information is as follows (in thousands):



|                                                      |  |               |         |                   |   |        
|----------------------------------------------------- |  | ------------- | ------- | ----------------- | - | -------
|                                                      |  | June 30, 2007 |         | December 31, 2006
|                                                      |  | (unaudited)   |         |                  
|Assets:                                               |  |               |         |                   |   |        
|Current assets:                                       |  |               |         |                   |   |        
|Cash and cash equivalents                             |  | $             | 30,834  |                   | $ | 8,246  
|Restricted cash                                       |  |               | 42,082  |                   |   | 11,127 
|Available-for-sale securities                         |  |               | 3,199   |                   |   | 37,807 
|Accounts and other receivables                        |  |               | 40,382  |                   |   | 25,077 
|Costs in excess of billings on construction contracts |  |               | 6,625   |                   |   | 7,061  
|Premiums receivable                                   |  |               | 11,939  |                   |   | 14,549 
|Deferred policy acquisition costs                     |  |               | 27      |                   |   | 330    
|Reinsurance recoverable                               |  |               | 1,243   |                   |   | 2,152  
|Prepaid reinsurance premiums                          |  |               | 24      |                   |   | 252    
|Inventory                                             |  |               | 5,052   |                   |   | 3,383  
|Deferred income taxes                                 |  |               | 1,583   |                   |   | 1,606  
|Prepaid costs and other current assets                |  |               | 35,141  |                   |   | 9,018  
|                                                      |  |               |         |                   |   |        
|Total current assets                                  |  |               | 178,131 |                   |   | 120,608
|Property and equipment, net                           |  |               | 222,223 |                   |   | 118,630
|Goodwill                                              |  |               | 9,181   |                   |   | 9,181  
|Other intangibles                                     |  |               | 2,992   |                   |   | 3,409  
|Deferred income taxes                                 |  |               | 307     |                   |   | 297    
|Other assets                                          |  |               | 4,590   |                   |   | 3,795  
|                                                      |  |               |         |                   |   |        
|Total assets                                          |  | $             | 417,424 |                   | $ | 255,920
|                                                      |  |               |         |                   |   |        
|Liabilities:                                          |  |               |         |                   |   |        
|Current liabilities:                                  |  |               |         |                   |   |        
|Accounts payable                                      |  | $             | 35,595  |                   | $ | 18,270 
|Passenger and participant deposits                    |  |               | 70,451  |                   |   | 17,622 
|Accrued and other expenses                            |  |               | 13,020  |                   |   | 10,656 
|Billings in excess of costs on construction contracts |  |               | 9,942   |                   |   | 4,334  
|Loss and loss adjustment expense reserves             |  |               | 8,599   |                   |   | 11,826 
|Unearned premiums                                     |  |               | 109     |                   |   | 1,220  
|Deferred gain on retroactive reinsurance              |  |               |        |                   |   | 19     
|Current portion of long-term debt                     |  |               | 5,301   |                   |   | 4,417  
|                                                      |  |               |         |                   |   |        
|Total current liabilities                             |  |               | 143,017 |                   |   | 68,364 
|Long-term passenger and participant deposits          |  |               | 8       |                   |   | 40     
|Long-term debt, net of current portion and discount   |  |               | 163,621 |                   |   | 71,779 
|                                                      |  |               |         |                   |   |        
|Total liabilities                                     |  |               | 306,646 |                   |   | 140,183
|Stockholders equity                                  |  |               | 110,778 |                   |   | 115,737
|                                                      |  |               |         |                   |   |        
|Total liabilities and stockholders equity            |  | $             | 417,424 |                   | $ | 255,920
|                                                      |  |               |         |                   |   |        



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