Denali Estimated MTD ROR -0.14%

[Megan Arias]

<P>Dear Interested Investor,</P>
<P>Please be advised that we estimate that both Denali Partners LP and Dena=
li Offshore Partners Ltd were down -0.14% month to date as of the close of =
business July 21, 2006.&nbsp; </P>
<P><SPAN style=3D"FONT-SIZE: 10pt">If </SPAN><SPAN style=3D"FONT-SIZE: 10pt=
"></SPAN>you have any questions please contact us.</P>
<P>Megan Arias <BR>
Director of Investment Services <BR>
Denali Asset Management, Ltd. <BR>
an affiliate of Denali Asset Management, LLLP <BR>
<BR>
Phone (340) 778-7744 <BR>
Fax (340) 778-7748 <BR>
Email megan@denalifunds.com </P><BR>=