UNDR UnderSea Recovery Corporation (CE)

UnderSea Recovery Corporation (the "Company") (Pink Sheets:UNDR) announced today that it is in discussion with several institutional funding sources, both domestic and foreign, regarding a potential funding of up to $10 million.

The Company's CEO and Vice President of Business Development, together with one of its principal investment banking and finance consultants have held a number of meetings in New York City over the past several weeks with institutional and high net worth individual investors with a view to arranging an investment of up to $10 million. The meetings have produced keen interest on the part of three large investment funds and a number of high net worth individuals and the Company is moving ahead in its negotiations with them.

All of the potential investors have requested a detailed budget and financial forecast. The Company will be utilizing the services of its accountants to prepare these documents and plans to have them prepared and delivered to the prospective investors in short order.

The Company believes the best way to handle the magnitude of the contemplated investment is through project and permit finance partnerships. In this methodology, project partnerships will be formed to exploit specified shipwreck projects and/or specified search and recovery permits. This structure will serve to keep the Company's shareholders from suffering inordinate share dilution, while enhancing the value of their shareholdings as projects are undertaken.

The partnership/joint venture format is a tried and true method for large project finance, and is frequently used in international projects. It has been used successfully in many industries, including marine salvage, oil and gas, alternative energy, mining, real estate, and agriculture. The Company has been advised by its tax experts that this methodology will permit the allocation of the bulk of tax benefits to the investors which will make the format more attractive to the high tax bracket investing community.

In making this announcement, Herbert C. Leeming, the Company's CEO, stated: "We have been working diligently to bring to fruition a multi-million dollar financing which will allow us to pursue several significant shipwreck projects simultaneously. We truly believe we are close to putting all the pieces together for such a funding which, if and when successful, will enable us to implement our business plan with speed and confidence."

About the Company

UnderSea Recovery Corporation is engaged in the business of locating and recovering historical shipwrecks, primarily those from the 15th through 19th centuries, and other cultural resources (artifacts and other objects of historical and archaeological interest) from the world's oceans and large lakes by applying advanced technologies in an environmentally and ecologically responsible manner.

Forward-Looking Statements Caution:

This release includes forward-looking statements, which are based on certain assumptions and reflects management's current expectations. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

CONTACT: UnderSea Recovery Corporation
         Bobby Goldman, Business Development Manager
         212-628-8777
         bobby777@rcn.com
         
         (404) 826-1164
         P.O. Box 28961
         Atlanta, GA 30358