RNS Number:5749P
Virotec International PLC
16 January 2007


                            VIROTEC INTERNATIONAL PLC

16 January 2007

                               Shareholder Update


The directors of Virotec International plc ("Virotec") (AIM: VTI) are pleased to
provide the following shareholder update on its operations for the last quarter
of 2006.

USA - Virotec Aquasolve

In June 2006, we advised the market the Department of Heath and Environmental
Control ("DHEC") confirmed that Virotec's ViroFlowTM Technology utilising the
Radium ProActivTM reagent "is a simple, effective, and efficient process for
reducing and maintaining Radium concentrations in drinking water below
regulatory Maximum Contamination Levels", and that it is "the best alternative
available in South Carolina". Since then, DHEC have established funding of
approx USD30 Million to assist public utilities in the state of South Carolina
to introduce water treatment processes for the treatment of naturally occurring
Radium in drinking water. It is expected that this funding will be available to
be drawn down by the public utilities from the end of January, 2007.

Naturally occurring Radium in drinking water is a widespread problem throughout
North America and the results of work completed to date have generated interest
from a number of different states. A demonstration trial has commenced in
Colorado, and negotiations are continuing with water companies and regulators in
four other states.

In December 2006, Virotec Aquasolve completed the Phosphate treatment of six
ponds for large food processing companies in South Carolina to demonstrate the
effectiveness of ViroFlowTM Technology using the ViroPhosTM reagent. To date 
this has generated approximately USD100,000 in revenue. Virotec expects this
will lead to orders for the treatment of additional ponds throughout 2007.


Middle East

Virotec has completed a large scale project with Clean Environment Technologies
("CET") of Al-Khobar in the Royal Kingdom of Saudi Arabia for the implementation
of its ViroCompostTM Technology at the NADA dairy in Al-Hofuf.

The project demonstrated the ability of the ViroCompostTM Technology to convert
dairy waste, produced by the dairy at a rate of 35,000m3 per annum (including
sand, cow manure, and waste milk and feed generated from 16,000 cows), into
commercial fertiliser products for resale to local date farms. ViroCompostTM
Technology is a combination of know-how, site and process design, specialised
operations, plant and equipment, and ViroBlendTM reagent, which controls odour
and temperature, adds micronutrients to the finished fertiliser, and helps
retain moisture during the composting process. Composting is not practiced
widely in Saudi Arabia, but this project is an initiative being encouraged by
the Saudi Government.

Virotec has also begun verifying the suitability of its ViroFlowTM Technology 
for treating Hydrocarbon-rich waste water from a large petroleum refinery in 
Saudi Arabia.


Australia

The Australian operation has continued to expand and operated profitably in the
December quarter. The Australian market has been used to prove the commerciality
of Virotec's various Technologies and provides the platform for their
commercialisation globally. The main areas of achievement in the December
quarter include:-

 a. It has completed the site remediation of ten sites affected by Copper Chrome
    Arsenate treatment. Whilst each of the sites is relatively small, the work
    has enhanced Virotec's reputation as a solution provider where no such
    solutions have previously existed.

 b. Virotec received Queensland Environmental Protection Agency ("EPA") approval
    to treat all forms of hazardous solids (including sludges, soil and dry
    solids) contaminated with heavy metals using its ViroFlowTM Technology.
    Virotec has been operating for many years with EPA approval on a
    "project-by-project" basis, but this is the first time the EPA has provided
    a company in Queensland with "blanket approval" for its technology.

 c. Virotec has received orders for the implementation of two new ViroSewageTM
    Technology systems. One of the systems was implemented in December 2006 and
    the second system will be implemented in Quarter 1 2007. The contracts will
    generate AUD250,000 in revenue for the implementation of the systems and
    once installed the ongoing technical support for providing the ViroSewageTM
    Technology will provide approximately AUD250,000 per annum of ongoing annual
    revenue.

 d. Virotec has completed laboratory trials for a large Zinc smelter company to
    demonstrate the effectiveness of its ViroFlowTM Technology to bind up 
    various waste materials including mercury, generated through its smelting 
    process. As a result of this success, Virotec has been commissioned to 
    complete large scale trials at two sites. Virotec is confident of 
    successfully completing both trials in Quarter 1 2007.

 e. Virotec has also recently signed a two-year contract for the conversion of
    low-level contaminated marine dredge spoil into commercial topsoil using its
    ViroSoilTM Technology. This agreement resulted from a year of research and
    on-site trials. The contract is expected to generate revenue of
    approximately AUD120,000 per year.


United Kingdom

Virotec has commenced its first commercial trial with a UK Water Authority for
the treatment of Phosphate in municipal waste water. This follows the successful
trial completed by the Water Research Council in 2006. Negotiations are
continuing with four other Water Authorities for the introduction of 
ViroFilterTM Technology.


Executive Chairman, Brian Sheeran, said "This quarter saw very rapid growth and
expansion into a number of areas, particularly the highly prized drinking water
market of the USA, with outstanding technical successes. This is a lucrative
market and Virotec expects to develop a significant market share. Phosphate
treatment also represents an important market for Virote and we are well
positioned to expand into this market in 2007. Overall I believe that the
prospects for Virotec in 2007 are very encouraging".


For further information please contact Angus Craig, Company Secretary on +617
5530 8014 or by email at mail@virotec.com.


                           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

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