January 25, 2010 -
Odyssey Marine Exploration, Inc. (NasdaqCM: OMEX), a pioneer in the field of deep-ocean shipwreck exploration, has been awarded the exclusive salvage contract for the cargo of the SS Gairsoppa by the United Kingdom (UK) Government Department for Transport. The contract was awarded after a competitive bid process and is for two (2) years, which commences immediately.
The SS Gairsoppa was a British cargo steamer enlisted in the service of the United Kingdom for the Ministry of War Transport during World War II. It was torpedoed by a German U-Boat in February 1941 in the North Atlantic while reportedly carrying a significant cargo of silver.
Odyssey will assume the risk, expense, and responsibility for the search, cargo recovery, documentation, and marketing of the cargo. If the salvage is successful, Odyssey will be compensated with a salvage award which consists of a majority of the net value of the recovered cargo after deduction of expenses of search and salvage.
"We're looking forward to working with the UK Government to recover the silver carried aboard the SS Gairsoppa and return it to the stream of commerce. The shipwreck is lying in the deep ocean well within the range of current search and recovery capabilities. We have good location information which suggests a search area that can be completed in approximately 90 days, and we are scheduling this project for summer 2010," commented Greg Stemm, Odyssey's CEO.
"We're pleased to expand our excellent working relationship with the UK Government with this contract, which will provide a significant economic benefit to the UK upon a successful salvage of his shipwreck," Stemm continued. "This project aligns with our strategy to focus on partnership projects with several governments that provide straightforward legal ownership arrangements."
About SS Gairsoppa
The SS Gairsoppa was a British cargo steamship that began her career in 1919 under the service of the British India Steam Navigation Company. She engaged in commercial shipping activity in the waters off the Far East, Australia and East Africa. By January 1941, the SS Gairsoppa was enlisted in the service of the UK Ministry of War Transport.
She started her final voyage from Calcutta, India in December 1940 loaded with nearly 7,000 tons of diverse medium and high-value cargo, including pig iron, tea, general cargo, and a large quantity of silver. Departing without a military escort, the Gairsoppa and convoy SL-64 sailed the dangerous waters of the Atlantic, intending to rendezvous with convoy HG-63, which was escorted by two warships. As the convoy reached the northern latitudes, the Gairsoppa, loaded down with a heavy cargo, was forced to further reduce speed due to high winds and ocean swells. As the weather worsened on February 14, 1941, the Gairsoppa, running low on coal and with insufficient fuel to keep up with the convoy, was forced to sail independently and to head for Galway in western Ireland.
On February 17, 1941, German Boat Commander Ernst Mengersen submerged his 66.5 meter-long U-boat 101, and torpedoed the Gairsoppa causing her to sink. Of the 32 crew members who boarded lifeboats after the attack, all perished except for one survivor who, 13 days later, reached shore at the Lizard lighthouse, United Kingdom.
About Odyssey Marine Exploration, Inc.
Odyssey Marine Exploration, Inc. (NasdaqCM: OMEX) is engaged in the exploration of deep-ocean shipwrecks and uses innovative methods and state-of-the-art technology to conduct extensive search and archaeological recovery operations around the world.
Odyssey discovered the Civil War era shipwreck of the SS Republic® in 2003 and recovered over 50,000 coins and 14,000 artifacts from the site nearly 1,700 feet deep. In May 2007, the Company announced the historic deep-ocean treasure recovery of over 500,000 silver and gold coins, weighing 17 tons, from a Colonial era site code-named "Black Swan."
In February 2009, Odyssey announced the discovery in the English Channel of Admiral Sir John Balchin's HMS Victory, the greatest warship in the age of sail. Odyssey also has an exclusive agreement with the Government of the United Kingdom for the archaeological excavation of HMS Sussex, an English warship that sank near Gibraltar in 1694.
The Company has other shipwreck projects in various stages of development around the world.
Odyssey offers various ways to share in the excitement of deep-ocean exploration by making shipwreck treasures and artifacts available to collectors, the general public and students through its webstore, exhibits, books, television, merchandise, and educational programs.
Odyssey's operations are the subject of a Discovery Channel television series titled "Treasure Quest," which is produced by JWM Productions. The 12-episode first season aired worldwide in 2009. Production on a second season is underway.
Following previous successful engagements in New Orleans, Tampa, Detroit, and Oklahoma City, Odyssey's SHIPWRECK! Pirates & Treasure is currently on exhibit at Discovery Place in Charlotte, NC until January 31, 2010. Additional information is available at www.discoveryplace.org.
For details on the Company's activities and its commitment to the preservation of maritime heritage please visit www.shipwreck.net.
Odyssey Marine Exploration 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, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. Certain factors that could cause results to differ materially from those projected in the forward-looking statements are set forth in "Risk Factors" in Part I, Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2008, which has been filed with the Securities and Exchange Commission.