VTI Virotec Intl

RNS Number:7059V
Virotec International Ld
15 December 2005


                            
The following information is provided in response to a letter the Company from 
the Australian Stock Exchange in relation to the recent fall in the Company's 
share price. 

                            VIROTEC INTERNATIONAL LTD

15 December 2005

Ms Melissa Grundy
Australian Stock Exchange Limited
PO Box 7055
Riverside Centre
Brisbane QLD 4001


Dear Ms Grundy

RESPONSE TO ASX PRICE QUERY

I refer to your letter dated 15 December 2005 in relation to the fall in price
of Virotec's shares.

In response to your queries, we advise as follows:

1.  Is the Company aware of any information concering it that has not beeen 
    announced which, if known, could be an explanation for recent trading in 
    the securities of the Company?

    Virotec is not aware of any such information.

2.  If the answer to question 1 is yes, can an announcement be made immediately?

    Not applicable.


3.  Is there any other explanation that the Company may have for the price 
    change in the securities of the Company?

    The Company believes that there may be at least two possible explanations 
    for the change in share price.

    Firstly, as announced on 14 December 2005, Virotec will be delisted from ASX 
    on 30 December 2005 following shareholders approval of a resolution to seek
    delisting at the Company's Annual General Meeting on 30 November 2005.  The 
    Company believes that the delisting may be causing some shareholders to sell
    their shareholdings.

    The Company believes that some Australian shareholders may not wish to hold 
    shares in a company not listed on ASX and as a result are selling their 
    holdings prior to the delisting.  This is consistent with an increase in the 
    volume of shares traded on ASX in recent days.
 
    In addition, the removal of the ASX listing has some impact on some smaller
    individual shareholders in the UK who hold their shareholdings in Individual
    Savings Accounts (ISA) which are tax exempt. The UK tax exemption in 
    relation to these accounts arises out of companies having a dual listing 
    status. When the Company ceases to be listed on ASX the exemption will no 
    longer apply, and smaller individual shareholders will no longer be able to 
    hold Virotec shares in ISAs which may result in some shareholders selling 
    their holdings.

    Secondly, there has been some speculation in the media and other sources
    commenting about the Company's performance in relation to the I-99 pilot 
    trial in Pennsylvania.  The Company believes this speculation is premature 
    and uninformed. As advised to the market on 2 December 2005:

       "The Directors of Virotec International Ltd (Virotec) (ASX/AIM: VTI) 
       advise that all field work relating to its pilot trial at the 
       Interstate 99 Project in Pennsylvania has now been completed, and the 
       Company is satisfied with the independently verified results achieved to 
       date. These results and the final report are now being compiled and will 
       be submitted to Pennsylvania Department of Transportation by the end of 
       December 2005."

    The Company and its consultants are working to this timetable and there is 
    no further information that can be added to the above statement to the 
    market at this time.

4.  Please confirm that the Company is in compliance with the listing
    rules and in particular listing rule 3.1.

    The Company confirms that it is compliance with the listing rules, and in
    particular listing rule 3.1

Yours sincerely


Angus Craig
Company Secretary


                            Virotec International Ltd
                               ABN 81 004 801 398
                                   PO Box 188
                            Sanctuary Cove QLD 4212
                                    Australia
                                www.virotec.com
                                        
                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
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