Since Oct. 3rd, OMAG's 17 plus Market Makers have suppressed the stock below $3 a share, while attempting to reduce their short positions, which they were forced into on Oct. 2nd, being overwhelmed with demand for stock, and vertually no sellers between $3 and $4. Rather than let the stock run up in price, to bring in sellers, they panicked, and froze it around $3, so they would not loose money on their large short positions which they already had in place.

In the process, all new buyers have enjoyed a bonanza of cheap stock, at a"protected" level. The O.T.C. Daily Short Volume Chart for OMAG shows us that short sales have accounted for aprox. 50% of total volume traded since Oct. 4th. As more buyers come in, more shorts have to be created. It's a Mexican Standoff, with an orderly market having to be maintained, and the "trapped" Market Makers having to keep the price below $3. No matter how many "good news" announcements, or promotional efforts occure, the stock will not close above $3 until all 17+ Market Makers have been able to cover their respective short positions.

Fortunately for us, we have YA entering the picture with 3 million shares for sale on their offering at $2.77per share. They should be given a medal for being so amazingly unselfish, sacrificing it at that price. This will be a bailout for the shorts, and finally a break on the strangle- hold they have had on us for the last three months. Once the shorts are covered, the stock will reflect it's true value.

So let's all be appreciative for small miracles, and a bit more patient with a striving management.

Harrell (Robert and Lynne)