"Lost for 1,600 years, the royal quarters of Cleopatra were discovered off the shores of Alexandria. A team of marine archaeologists, led by Frenchman, Franck Goddio, began excavating the ancient city in 1998. Historians believe the site was submerged by earthquakes and tidal waves, yet, astonishingly, several artifacts remained largely intact. Amongst the discoveries were the foundations of the palace, shipwrecks, red granite columns, and statues of the goddess Isis and a sphinx. The Egyptian Government plans to create an underwater museum and hold tours of the site."
There are some interesting photos here.