newsletter

VIROTEC INTERNATIONAL LIMITED 2002-12-16 ASX-SIGNAL-G

HOMEX - Brisbane

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The following provides an update on the recent activities of Virotec
International Ltd (ASX/AIM: VTI). As detailed in the Company's Annual
Report of 2002, the Company's business is currently clearly
delineated into four divisions. This update looks at some of the
progress achieved in each of these divisions as well as highlights
some of the strategic alliances recently finalised.

VIROMINE DIVISION
AGUA FORTE - PORTUGAL

The Barragem Agua Forte ("BAF") treatment program is expected to be
completed by the end of December 2002 and the full laboratory
analyses of the final results is expected to be available within 3 to
4 weeks after treatment has been completed. Due to the high level of
contamination in this dam a detailed work programme has been followed
to ensure the success of the project. Work on the site to date has
involved:-

* A series of laboratory trials on Agua Forte water samples of
varying composition to simulate different amounts of dilution from
rainwater and site run-off.

* A trial treatment of BAF water was conducted in a small pond
constructed on the site adjacent to the ViroMine reagent mixing
facility. Water from the BAF was used to fill the pond to a volume of
approximately 500 cubic metres and this pond was then successfully
treated.

* A series of diversions channels being built around the dam to limit
the impact of run off from the surrounding areas on the dam water
once treatment has commenced.

US EPA REGION 8

The US Environmental Protection Agency (Region 8) has concluded its
report on the initial trials at the Gilt Edge Mine Site in South
Dakota and a link to their full report will be provided on the
Company website in the next few weeks. At this stage we are working
with the US EPA on the planning for the next stage of the trials to
be conducted on the site, and expect this work to commence early
2003.

VIROFLOW DIVISION
TANNERY

Virotec has been contracted to conduct a one-month co-funded
wastewater treatment trial using its ViroChrome(TM) technology at a
medium-sized tannery in Queensland, Australia, in early 2003. Many
tanneries are faced with high levels of chromium III in their
wastewater and sludge, adding to their environmental liability and
costs of operation. Virotec expects to begin sludge remediation
trials at the same tannery later in 2003, and will focus its sales
and marketing efforts on tanneries in Australia and Asia during 2003.
Tanneries in India have already been approached, and tannery
association and government support will be sought.

PORT AUTHORITY OF ROTTERDAM

Virotec has completed a front-end engineering design study on aspects
of a proposed waste-water treatment plant for the Port Authority of
Rotterdam in The Netherlands to be built on Port Authority property.
The facility is intended to support a planned major new petrochemical
plant in Rotterdam. The Port of Rotterdam is significantly the
world's largest port, in terms of throughput tonnage, handling more
than 300 million tons annually.

The contract has a value of approximately $180,000 (Euros 100,000)
and was completed in November this year.

VIROSEWAGE DIVISION
KILCOY SHIRE COUNCIL

Virotec is conducting an "Open Day" demonstration of its
ViroSewage(TM) technology at the Kilcoy sewage treatment plant, in
Queensland, Australia, on 17th December 2002. This will conclude a
one-month full scale commercial trial of the technology with the
Kilcoy Shire Council. Other councils and wastewater treatment
specialists have been invited to attend this Open Day.

The Open Day will demonstrate how the ViroSewage(TM) process reduces
plant odour, increases plant capacity, and improves water quality by
reducing phosphate, BOD, TSS, and turbidity levels, and improves
colour and clarity in sewage effluent. The ViroSewage(TM) system aims
to ensure sewage plants are able to comply with EPA aquatic ecosystem
standards and to improve plant performance in treating and disposing
of bio-solids.

OTHER INTEREST

The Company has made presentations to other councils in Australia and
in the United Kingdom, and based on the feedback received from
potential clients is confident will be able to generate revenue from
the ViroSewage(TM) technology early in 2003.

VIROSOIL DIVISION
AQUACULTURE

Virotec has begun commercial trials on the treatment of acid sulphate
soils at Tomei Australia Pty Ltd, in a large prawn farm in
Queensland, Australia. Preliminary results suggest that the
ViroSoil(TM) technology has the ability to lower pond pH and reduce
heavy metals in pond sand, both major stressors on prawn life and
growth.

Mr Thorbjorn Lyster of Tomei Australia has said that "since the
filling and stocking of the treated ponds with the Peneaus monodon
post-larvae we have been closely monitoring water, algae, and prawn
progress and have noticed what appears to be positive improvement in
the nature of the phytoplankton blooms and stability of pH. At this
stage the crop appears to be progressing well."

Final trial results and yield levels will be known by April 2003. If
results are as expected, Virotec will target the prawn aquaculture
industry in Australia and Asia in 2003.

STRATEGIC PARTNERS

In addition to the commercial progress noted above, Virotec continues
to negotiate a number of alliances that will assist in advancing the
Company into new regions. These include the following which have
recently been concluded: -

MARUBENI CORPORATION

Virotec has signed a two-year Memorandum of Understanding with
Marubeni Corporation to jointly develop business opportunities in
Japan and elsewhere in Asia, and to explore expanded business
relations in the region.

Marubeni has approximately 6,100 employees worldwide located in a
total of 131 offices in 73 countries, and is one of Japan's largest
companies.

Marubeni has identified Virotec's ViroMine and ViroFlow technologies
as environmental technologies that have widespread applicability in
the remediation of mine sites and waterways, the treatment of acid
sulphate soils and industrial wastewater, and in other environmental
and industrial applications in Japan and the Philippines. According
to Japan's Ministry of Environment, soil remediation projects alone
represent approximately US$109 billion.

Marubeni has also targeted Virotec's Basecon(TM) technology as having
significant potential for Japan's alumina refineries. Marubeni
currently supplies Australian bauxite to alumina refineries in Japan,
and is examining ways that Basecon(TM) may be deployed to neutralize
alumina refinery residue so that it is environmentally benign and
that refineries work toward a "zero liability" future.

GEONENVIROTEC CO LTD - SOUTH KOREA

Virotec has entered into a Strategic Alliance Agreement with
Geonenvirotec Co Ltd (www.geoenvirotec.co.kr), a Taegu-based
environmental geochemistry and remediation company working with the
Korean Institute of Construction Technology (KICT) to assess the
applicability of Virotec's technologies in acid mine drainage and
waste rock dump remediation, and the treatment of tannery effluent.
In a recent issue of "Construction Technology Review", KICT published
an article on Virotec's Bauxsol(TM) Technology, and its usefulness in
treating a range of environmental problems in Korea.

MAHENDRA INTERNATIONAL - INDIA

Virotec has signed a Business Development Agreement with Mahendra
International to introduce Virotec's Basecon(TM) Technology to the
alumina refineries of India. Mahendra International is a business
development and consulting company based in New Delhi with more than
40 years experience in mining, alumina refinery processes, and other
aspects of waste water and soil treatment. There are four primary
alumina refineries in India, and Mahendra International has the
rights to initiate pilot projects and site trials of Basecon(TM)
technology at these refineries. This agreement follows from the
Memorandum of Understanding signed between the parties in February
2002.

OTHER RELATIONSHIPS

In addition to the above, Virotec has entered into Marketing and
Licensing Agreements with the following companies in India: -

* Lars Enviro Pvt Ltd, an associated company of the Larsen Group in
the United States. Lars Enviro is an environmental project
engineering firm based in Nagpur, Maharashtra.

* Associated Environmental Engineers Pvt Ltd, a Baroda, Gujarat-based
environmental engineering and energy conservation firm which offers
environmental solutions and services to both industry and the
community. Associated Environmental Engineers has expertise in
environmental management consulting and wastewater engineering.

Virotec International Ltd develops new technologies and manufactures,
distributes and applies new market-driven environmental products for
water and soils. For further information, please visit our web site
at www.virotec.com.

Enquiries:

Virotec International Ltd Tel: +617 5530 8014