Acquisition of Business

RNS Number:1227S
Virotec International Ld
17 November 2003



17 November 2003

                           VIROTEC INTERNATIONAL LTD ("Virotec")

          UK ACQUISITION - Environmental Performance Technologies Ltd ("EPT")

Virotec International Ltd (ASX/AIM: VTI) is pleased to announce that it has 
acquired the business of Environmental Performance Technologies Ltd an 
environmental consultancy based in Oxford, England.

The acquisition was completed on 14 November 2003 and was structured as follows:

   *#44,240 (approx $AUD106,000) has been paid in cash by Virotec for all the
    fixed assets of EPT (the estimated replacement value of the assets);
   *#3,000 has been paid in cash for the goodwill of the Company; and
   *Virotec has conditionally assumed liabilities of #196,000 (approx
    $AUD472,000) - payment of these liabilities is contingent upon profits of a
    like amount being generated from EPT's future business. The agreement
    contemplates that these liabilities will be repaid within 12 months of the
    date of acquisition.

The EPT business provides consultancy services in the wastewater industry,
principally in the United Kingdom and Ireland. The business is focused on:

   * Providing "turnkey" solutions and/or the implementation of technological
    solutions for wastewater treatment plants;
   * Using technology to enhance treatment capabilities on facilities with
    large surplus capacity, allowing the facility owner to realise reduced
    treatment costs;
   * Designing, operating and managing of biological wastewater treatment
    systems;
   * Process Analysis for water use optimisation, cost savings and
    sustainable development, with the aim to minimise fresh water requirements
    and wastewater discharges; and
   * Environmental Auditing focusing on waste and wastewater treatment
    facilities and contaminant liability and health and safety issues.

For the year ended 31 July 2003, EPT reported a pre-tax loss of #134,520 (approx
$AUD313,566) on turnover of #292,760 ($AUD682,424). EPT employs four full time
staff who provide technical expertise in the design and operation of wastewater
treatment systems and has also established a network of external consultants for
use on specific projects as and when required. All of the current EPT staff will
become employed by the Virotec Group in a new subsidiary to be called Virotec
EPT Limited.

The acquisition of the EPT business by Virotec is the culmination of a twelve
month strategic alliance with EPT, during which EPT has reviewed Virotec's
proprietary technologies, the forward market opportunities and potential for
customer integration. The staff at EPT have in excess of 50 years' experience in
wastewater treatment.

In recent months, EPT has laid the foundations to trial ViroSewageTM Technology
with two major UK water utilities and has introduced the ViroFlowTM Technology
to a number of other clients. Going forward, Virotec anticipates that the EPT
team will spearhead Virotec technical support for both the ViroSewageTM and
ViroFlowTM technologies throughout Europe.

Executive Chairman, Brian Sheeran commented: "The market expertise that the EPT
business brings to Virotec is an excellent match for our criteria for strategic
growth and investment. We anticipate that our technologies and the EPT team's
experience will produce a competitive advantage that should increase shareholder
value."


                            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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