the only way is up !, page-13

I received this reply today. Nothing new but good of them to respond.

Dear Roger,

Thank you for your email. Please see the responses listed below each of
the questions you asked, in point order:

1) Does Valad have responsible management not involved in MBO?

Yes, apart from Peter Hurley, the current senior leadership team in
Australia and five members of the senior leadership team in Europe have
no involvement in the MBO proposal.

2) How is the active management, which is not involved MBO dealing with
that team's conflict of interest?

There has been no change to the Valad Board of Directors apart from
Peter Hurley who has taken a leave of absence. Also, all of the
European executive team remain in place; however those involved in the
MBO Group are operating under protocols, as detailed in the ASX
announcement of 16 December. In Australia, the Group CFO, General
Counsel and the senior leadership team remain unchanged and are not part
of the MBO Group and as stated in the ASX release the Managing Director
role will be shared between "Valad's existing senior leadership team
with oversight from Valad's Chairman, Trevor Gerber". Consideration is
being given to appointing an acting CEO.

3) How long will the market have to wait for an accurate valuation of
proposed buy out?

The MBO proposal is still at an early stage and no formal offer has yet
been received by Valad. If and when a formal offer is received it will
be fully assessed by the Board, including seeking an assessment by an
independent expert. The Board is aware of the uncertainty and potential
concern that this type of proposal creates and will continue to assess
it and ensure that any decision by Valad to enter into an MBO and the
price at which assets are sold is in the best the interests of
securityholders. Valad will continue to inform the market of relevant
developments as appropriate.

4) What attempts are being made to reassure the market that the rot is
only as deep as the Eu. MBO portfolio?

Can you please clarify what you mean by your statement 'that the rot is
only as deep as the EU MBO portfolio' and we will gladly respond. We
are unsure as to what you are referring to.


5) How long before Valad Management will be able to see fit to
distribute some company earnings to S/H's?

No distribution was declared for the 2010 financial year and none is
expected for the 2011 year. Valad continues to take a measured approach
to capital management.


Kind regards,
Investor Relations