Dear OTC Digest Members,

The OTC Digest would like to use the U.S. Independence Day celebration to convey our sincere appreciation to all of our loyal members for their continued support and valuable feedback. At the same time we are taking this opportunity to make a special announcement, and give you some quick updates on our current featured companies as we move past the half way point of the year 2004.

Featured company Updates

Power 3 Medical Products, Inc. (OTC BB: PWRM) closed today at $3.95, enjoying a 88% gain since our profile on 6-15-04. The stock has risen $1.85 in just 14 trading sessions, spurred on by strong news related to their breast cancer patent announcement on 6-24-04. If you have not already performed due diligence on this fine young company, we suggest you get on the ball and begin your homework ASAP. As with any stock that rises this quickly, expect profit taking. It is a healthy part of the equation and allows profits to be made while giving others a chance to participate.

Lexington Resources, Inc. (OTC BB: LXRS) originally profiled on 5-12-04 had a steady rise from $5.84 to a high of $7.46. Although the stock experienced a dramatic one-day plunge on 6-29-04 to settle now at the $3.75 level, fundamentally nothing has changed with the company. The only plausible explanation is what is referred to as a "Short Raid". Unfortunately, stocks that reach the $7+ level on the OTC Bulletin Board often become targets for off shore short players. The company is confident the share price will rebound as LXRS continues to make steady progress. It is worth noting that the energy sector has turned in the best performance this year, up 12% for the year.

Golden Patriot Corp. (OTC BB: GPTC) initially profiled on 5-25-04 at $0.35 has dropped off after hitting a high of $0.47 on 6-16-04, and has now corrected back to $0.27 awaiting news of the test results of the vein samples.

Despite the summer doldrums, all of the stocks mentioned above are experiencing daily above average volume. If you have questions regarding any of the mentioned companies, please call their respective investor relations contacts directly. The names and phone numbers for each can be found on the OTC Digest web site 'Featured Company' sections for each individual company.

OTC Digest Web Site Enhancements and Upgrades

The OTC Digest considers you our most valuable asset and as part of our team, we rely profoundly on subscriber input to constantly improve our services. This would include the content of all our email newsletters and the timing of our profiles and special reports. Further, the ease of navigation, clarity of web site content, and responding and answering questions and concerns in a clear and timely manner is paramount. To this end we have made two significant upgrades in the first half of 2004.

First, we have created an FAQ section on the web site to answer commonly asked questions, and detailed instructions on how some of the newer features on our web site function, including configuration for personal spam filters you may have on your home computer to avoid interruption of service. We encourage you to visit and read the entire page located at: https://www.otcdigest.com/index.aspx?act=faq

Special Announcement

Possibly the single most important enhancement to the OTC Digest since its inception in 1996 came this year on May 5, 2004 when the OTC Digest attained Bonded Sender(tm) status from IronPort Systems. The Bonded Sender Program, by IronPort and certified by TRUSTe, identifies legitimate senders of email.

Most financial newsletters fall short of the mark and are unable to attain certification because of a history of spam related issues, and as a result, all of us should begin to enjoy far less self-proclaimed financial spam newsletters. You can click on the Bonded Sender logo on the OTC Digest home page for more information about the Bonded Sender program.

The Bonded Sender Program now allows legitimate e-mail senders such as the OTC Digest, to identify themselves, and avoid delivery problems with any major ISP. Ambika Gadre, Director of Product Management for Information Services at IronPort, said "Having Mircosoft on board shows the critical mass needed to implement this type of 'white list' approach."

Along with Equity Media's OTC Digest.com, the list of Bonded Senders includes Warner Music, eBay (EBAY), Major League Baseball, Motley Fool, NASDAQ, DoubleClick (DLCK) and Cnet (CNET).

Many of the OTC Digest's opt-in subscriber base were having their emails either deleted, blocked, or put into the "Spam" or "Bulk Mail" folders by Hotmail, MSN, Yahoo, AOL, and Earthlink. Bonded Sender(tm) Certification now enables the OTC Digest to guarantee delivery of our emails into your inbox at Hotmail, and MSN with no delays, and the OTC Digest has obtained separate "whitelisting" agreements with AOL, Yahoo, and Earthlink.

One of the most challenging aspects of operating an online newsletter with such a large audience is the issue of Spam, particularly with the advent of automated spam filtration at the entry point of all the major ISP's and personal spam filters. This battle against spam affects all that use email and is far from over, but major strides have been made by Bonded Sender, SpamCop and Microsoft and the OTC Digest and its owner and operator Equity MEdia, will continue to work with these global leaders, all in an effort to stamp out unsolicited bulk email.

We encourage members to tell your friends about our complimentary newsletter and Independent Focus List service. If for any reason you ever wish to discontinue your membership, please use our instant unsubscribe feature located on the web sites subscription page.

The OTC Digest will continue to stay ahead of the curve with our member's continued feedback, so please keep the letters and emails coming. The summer is just beginning and we have many exciting new companies yet to be profiled, so as always --

Stay Tuned!

OTC Digest
Editor in Chief