We also believed that the public's interest in shipwrecks would lead them to tourist attractions and traveling exhibits dedicated to sharing the knowledge and science gained from deep ocean exploration.

We have adhered to our original business plan, but accurate predictions of the timing required for some of our pioneering activities have suffered in spite of our best estimates made from the data available to us at any given time. Communicating with the public about day-to-day activities while protecting our assets and personnel has also been a challenge at times. And although our various media agreements provide broad exposure for our projects, the agreements put restraints on the release of images and non-material information in advance of some of the magazine and television features.

With the National Geographic Society's announcement of the magazine's September feature on the SS Republic, we can now share more about the story. The artwork, photography and writing in the National Geographic piece are fantastic and we are delighted to see the significance of the work we have accomplished on the shipwreck featured in such a prestigious publication. We believe that it was worth the wait and significantly enhances the historic value and public interest in the shipwreck.

As delighted as we are with the positive media coverage we have received to date, the media often focus on us, as company founders, when reporting about Odyssey. The reality is that we have an amazing team of talented and dedicated people that actually make things happen, and we are incredibly proud of their accomplishments over the past year. One purpose of this Update is to give you some concept of the activities taking place in our different departments. We hope you enjoy this glimpse of the terrific work our entire team is doing every day.

With the recent setbacks in the stock price, it is easy to forget that Odyssey has made incredible strides during the past year - evolving from a dream into a business with its first significant revenues. From August 2003 till July 2004 our team has:

• located the SS Republic shipwreck
• raised the financing to buy a recovery vessel and work-class ROV
• mobilized the Odyssey Explorer and ZEUS for deep ocean archaeological work
• completed a detailed pre-disturbance photomosaic work on the Republic site
• moved from the OTC Bulletin Board to the American Stock Exchange
• located a cache of gold and silver coins on the Republic and recovered over 51,000 coins
• contracted with the top numismatic experts in the country for the conservation, grading and marketing of the coins
• reached an agreement with the original insurer of the SS Republic and obtained title to the shipwreck and cargo
• been featured on Dateline NBC, MSNBC's Ultimate Explorer, and on countless other news and information programs
• launched sales of U.S. silver "shipwreck effect" coins with record results and prices
• excavated approximately 75% of the Republic shipwreck site and recovered approximately 10,000 artifacts (for more information and an excavation site map, see the recovery operation update)
• booked the company's first significant revenue and profits
• sold out our first release of gold coins within days of the announcement of their availability
• purchased a new headquarters building to house our growing corporate and administrative staff, adding desperately needed expanded office space while keeping our monthly expenses down by leasing out half of our new building. This provides much more than reasonably priced housing, it allows us to control access to our own building - and control our neighbors - which is critical from a security standpoint.

In addition, our search team is continuing to search for additional targets off the Atlantic coast, and our project development team is combing archives in the U.S. and Europe, turning up some promising new potential targets for the search team. The operations team is preparing for the upcoming Sussex excavation, and our attraction development team is planning for both fixed and traveling shipwreck attractions.

Our office is a beehive of activity in all the different departments - maintaining 24/7 support for the ships and crew and providing the general corporate and administrative support that all public companies require.

The challenge of complying with the rigorous requirements of Sarbanes - Oxley in an American Stock Exchange company is being met by our finance and accounting department. This new and complex law has created a difficult compliance regime, and many companies have simply given up on trying to maintain their status as public companies. We have embraced the challenge and through seminars, consultants and long extra hours of study, have kept up-to-date with the latest requirements and expect to meet all deadlines for compliance.

All in all, we have come a long way. Odyssey is truly a one-of-a-kind business. As large financial institutions and funds try to understand the principles and metrics of our business, they appear to be recognizing the potential our business holds. This is evidenced by the holdings by institutions, who hold approximately 2.5 million shares of Odyssey stock today.

New editions of Odyssey Update will be posted on a periodic basis. We will not publish them according to a specific schedule, but they will be provided as new and interesting data can be released without compromising the security of our search and recovery operations or violate our media agreements.