Denali MTD Est ROR: - 0.70%

[Megan Arias]

<P>Dear Interested Parties:</P>
<P>Please be advised that as of the close of business on Friday, September =
8th, we estimate that Denali Partners, LP and Denali Offshore Partners, Ltd=
. are down - 0.70% month-to-date.</P>
<P>If you have any questions, please let us know.</P>
<P>Sincerely,</P>
<P>Michael Strupp on behalf of </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>=