Down another 9% in LondonCompany Virotec International Ld TIDM...

Down another 9% in London

Company Virotec International Ld
TIDM VTI
Headline Response to ASX price query
Released 07:46 15-Dec-05
Number 7059V



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