Federal judge says company should give 17 tons of shipwreck treasure back to Spain; Odyssey announces plans to file a written objection to the U.S. Federal Court Magistrate’s recommendation

Odyssey Marine Exploration Inc. (Nasdaq: OMEX) saw its shares nearly halved last week after a federal judge ruled the Florida-based deep-sea explorers should give the 17 tons of shipwreck treasure back to Spain.

According to the report, federal magistrate judge Mark Pizzo ruled the treasure was recovered from the wreck of the Nuestra Senora de las Mercedes and is covered by sovereign immunity – the principle that naval vessels belong to their flag nation regardless of age or location. In an order last week, Pizzo wrote Spain is the rightful owner of the treasure, which was being carried by a Spanish navy galleon when it sank southwest of Portugal in 1804.

Odyssey has been locked in lengthy a battle with Spain over the ownership since it announced the find, popularly known as the “Black Swan” treasure, in May 2007.

The company brought the said case to federal court in the spring of 2007 after discovering the site in the Atlantic Ocean with over 500,000 gold and silver coins. Spain filed a claim in the case asserting the cargo came from the Nuestra Senora de las Mercedes, a Spanish vessel which exploded in 1804.

With the Spanish government hailing the federal judge’s recent decision, Spanish Culture Minister Angeles Gonzalez-Sinde stated, “I am delighted that the judge has ruled that the ship belongs to Spain and the treasure belongs to Spain. It is a very important decision.”

He added the decision set an important precedent.

Odyssey, addressing questions brought by intense international media coverage, made this statement, “Returning the coins to the Spanish Government when they never owned them defies logic and reason. We also disagree with the Magistrate’s apparent assumption that a vessel was found at the site. Furthermore, the Magistrate accepted facts as presented by Spain without giving Odyssey an opportunity to cross examine witnesses at a trial.”

Answering whether the case affects its currents and balance sheet, the company said its shipwreck operations continue to be focused in the “Atlas” search area with both of its ships working in the English Channel. In addition, it said it has been planning additional operations for 2009 in other areas of the world. For its balance sheet, Odyssey said the case does not have any effect, saying the “Black Swan” coins were never treated as assets on their balance sheet.

But determined to win the battle, Odyssey said it will file its objection and will continue to vigorously defend its rights to what it has legally recovered and submitted to the jurisdiction of the court.

Melinda MacConnel, Odyssey’s vice president and general counsel, stated, “This is clearly a case where there are many relevant issues of fact that have been disputed, including the issue of whether the Mercedes was on a commercial mission and whether the property recovered belonged to Spain. I presume that the claimants in the case who assert ownership rights by virtue of the fact that their ancestors owned a portion of the cargo will join us in objecting.”

About Odyssey Marine Exploration Inc.

Odyssey Marine Exploration Inc. 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 of Balchin’s HMS Victory. The company also has other shipwreck projects in various stages of development around the world.

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