SS REPUBLIC ODYSSEY MARINE EXPLORATION OVERVIEW: The SS Republic (formerly code-named the "Bavaria") was a sidewheel steamship that sank in 1865, after fighting a hurricane for two days. The ship, en-route from New York to New Orleans, was reportedly carrying $400,000 in specie. Dr. Donald Kagin, considered one of the nation's foremost experts on American gold coins from that period, has estimated that the potential retail value of these coins in today's market could reach $120 million or more. Note: The ultimate value of the cargo to the company could be either more or less than the numismatic value, and will depend on the method in which it is marketed, the share of other claimants if any, the cost of financing and many potential factors outside the control of the company. There will always be the risk that the cargo could be impossible to find, non-existent, or of minimal value. STATUS: January 2005 Odyssey began pre-disturbance on the SS Republic shipwreck site in the fall of 2003. Since then, the Odyssey team aboard the ODYSSEY EXPLORER has: - Recorded over 13,000 underwater digital still photographs while surveying and excavating the shipwreck site. - Recorded over 3,200 hours of high resolution video on DVDs and tape while surveying and excavating the SS Republic site. - Integrated a High Definition Video Camera into the ZEUS/Odyssey Explorer system, which has produced beautiful HD video of the shipwreck site. - Completed 244 dives with the Remotely Operated Vehicle ZEUS to explore and excavate the SS Republic shipwreck site and recover gold coins, silver coins and artifacts. The actual bottom time was 3247 hours. The longest dive made by ZEUS lasted 72.5 straight hours. - Created a database with over 60,000 records as the team recorded excavation and survey activities on the shipwreck site. In addition, the entire survey and excavation was recorded on video. - Recovered approximately 14,000 artifacts (including almost 6,300 bottles) from the site. All artifacts were given first aid conservation aboard Odyssey Explorer before being transferred to our conservation facility for documentation and conservation. - Recovered over 51,000 gold and silver coins from the site representing approximately 25% of the reported $400,000 (1865 face value) that was lost with the ship. The estimated retail value of the coins recovered to date should exceed $75 million according to John Albanese, Numismatic Marketing Strategist for Odyssey. A partial gold coin population report detailing specific coins and grades for gold coins conserved and graded by Numismatic Conservation Services (NCS) and Numismatic Guaranty Corporation (NGC) through September 16, 2004 is available here. - Completed inspection and necessary excavation of the main area of the SS Republic shipwreck. The next steps include the survey and excavation of the debris trail. A detailed search of this area is planned for January 2005 prior to departing for our next project. Based on our current understanding of the debris field, we believe that it should take no more than 10-20 operational days to complete the search of this area. The additional coins believed lost with the SS Republic may be found in the debris field created when the ship broke apart as it sank to the ocean floor nearly 1,700 feet deep. Research suggests that the top deck broke away from the ship as it began to sink. - Been the subject of hundreds of media articles and stories including a feature on Dateline NBC, two television specials, and a National Geographic feature article It's been a remarkable year and we're extremely proud of the groundbreaking work being done every day by our marine operations team. The work done so far on the site was done nearly continuously over the past year in one of the toughest deep ocean places to work - the center of the Gulf Stream. For the latest updates from Project Manager Tom Dettweiler, go to http://shipwreck.net/ssr-projectmanagerlog.shtml . PHOTOMOSAIC OF THE SITE: As part of the pre-disturbance survey, the Odyssey team created a detailed photomosaic. Small areas of the shipwreck site were photographed and then the individual images were 'stitched' together to create the photomosaic. This can be used in later study and documentation of the SS Republic. For a comprehensive view of the SS Republic photomosaic please click on the following link: "SS Republic Photomosaic - http://magma.nationalgeographic.com/ngm/0409/feature7/zoomify/main.html ", courtesy of National Geographic Magazine. COINS AND ARTIFACTS: Shortly after commencement of archaeological excavation of the site, a substantial number of gold coins were revealed using Odyssey's Sediment Removal and Filtration (SeRF) system. To date more than 51,000 coins have been recovered including $20.00 Double Eagles, $10.00 Eagles, Half Dollars and Quarter Dollars. According to John Albanese, Numismatic Marketing Strategist for Odyssey, the retail value of coins recovered to date is expected to exceed $75 million dollars. * The face value of recovered coins represents approximately 25% of the "$400,000 in specie" (face value in 1865) that historical research indicates was on board the Republic when she sank. Among the coins already retrieved are numerous gold eagles, gold double eagles, silver half dollars and even a few quarters, nearly all dating between the 1840's and 1865. Unlike other recently salvaged shipwrecks, a wide variety of dates and mints have been noted in this find. Based on the pieces recovered thus far that have been professionally conserved by Numismatic Conservation Services (NCS) and graded and encapsulated by Numismatic Guaranty Corporation (NGC), this collection already includes many finest-known examples of United States gold and silver coins from the period. See featured coins from the SS Republic at http://shipwreck.net/ssr-featuredcoinarchive.shtml . To date approximately 14,000 artifacts have been recovered from the SS Republic. Literally bringing the past to life, the discoveries have become part of Odyssey's SS Republic Collection. Many artifacts and rare items of cargo will be kept in Odyssey's permanent collection for display and study. THE SEARCH: During the last 12 years, over 1,500 total square miles have been devoted to the search for this elusive target, with Odyssey searching over 1,000 square miles during the past two years alone. A total of 24 targets were inspected with a remotely operated vehicle (ROV), during 2002 and 2003 after an exhaustive search operation using advanced Edgetech Chirp side-scan sonar and integrated Seaspy Overhauser magnetometer technology. The search area was determined with the help of computer models that combined information from newspapers and survivors reports, ships' logs and other information about currents and the storm. This laid out potential locations for the ship's sinking, reflecting different combinations of surface current speed, effect of winds upon the ship's movement after the engine failed, and effects of wind and current upon the movement of the ship's boats and raft after they cast off. Previous searches covered additional seabed. Odyssey co-founders John Morris and Greg Stemm began searching for the SS Republic while at Seahawk Deep Ocean Technology. After forming Odyssey, they acquired all the research files for the project from Seahawk, who had abandoned the project because of a lack of funding. In July 2003, side scan sonar revealed a promising target. In August 2003, an initial video inspection was conducted which revealed a sidewheel partially buried by sediment, the ship's rudder sheathed in copper, and a large field of artifacts and bottles, including preserved bottles of fruit or other food with corks still intact. Measurements were taken from the high resolution side scan surveys of the site. The dimensions matched the known length and sidewheel size listed in historical records. After mobilizing the proper equipment and personnel for the archaeological excavation of the site, pre-disturbance survey work began in October 2003. The ship's bell was located and recovered to positively identify the shipwreck as that of the SS Republic. Several interesting wrecks were discovered during the search for the Republic and Odyssey has filed arrests on several shipwreck sites, including the "Blue China Wreck" and the SS Republic. # # # The Company believes the information set forth in this Press Release may include "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Certain factors that could cause results to differ materially from those projected in the forward-looking statements are set forth in "Risk Factors," and "Business" in the Company's annual report on Form 10KSB for the year ended February 28, 2003, which has been filed with the Securities and Exchange Commission.