VTI Virotec Intl

RNS Number:3380Y
Virotec International PLC
14 June 2007

                           VIROTEC INTERNATIONAL PLC

14 June 2007

                                 USA Contracts

The Directors of Virotec International plc ("Virotec") (AIM: VTI) are pleased to
announce that Virotec's specialty water treatment joint venture company, Virotec
Aquasolve LLC, has entered into the following contracts, gaining entry into new
US industry segments:

1. ViroPhosTM contract to treat substantial industry problem of Hog Farm waste
 
   Virotec Aquasolve has entered into a contract with the world's largest hog
   producer for the treatment of 13 hog farm lagoons in the Southeast USA.

   Virotec Aquasolve will apply its specifically developed, agricultural lagoon
   treatment to reduce the level of Phosphate in 13 nutrient-rich hog farm 
   lagoons. The initial treatment, to be completed in June 2007, will generate 
   $US86,000 in revenue, determined by the customer's required Phosphate removal
   targets. Hog farm lagoons receive ongoing influent and, as such, require 
   ongoing treatment. The current expectation is that treatment will be required
   at least twice per annum.

   The trend to Concentrated Animal Feedlot Operations (CAFO) has resulted in 
   large farms producing thousands of large, open-air lagoons to store a 
   continuous influx of excess waste, particularly in the large hog producing 
   states of Iowa, North Carolina, Illinois and Virginia.

   Under recent changes (10th February 2006) to National Pollutant Discharge
   Elimination System, the US EPA public policy requires CAFO's to implement
   Nutrient Management Plans that adhere to specific permit requirements for
   Phosphate and other nutrients.

   These requirements have been further complicated by the fact that 70% of
   concentrated hog farms are in the US heartland where the practice of ongoing
   expansion of waste lagoons is no longer an option due to limited available
   acreage.

   Virotec USA's Chief Executive Officer, Neil Bardach states, "After a 12 month
   period of extensive field testing of our market-driven, hog lagoon treatment,
   we are pleased to have the industry leader and the world's largest hog 
   producer as our first customer."

   "We specifically targeted a revenue model based on a calculation of Phosphate
   removed, because 70% of the Phosphate currently generated in manure and
   wastewater is excess to agronomical reuse. Without treatment, this excess
   Phosphate poses a genuine ongoing containment or discharge problem, not just 
   to hog farms but to all CAFO's including hogs, turkey, chicken and cattle, 
   and these CAFO's contribute billions of dollars of annual turnover to the US
   economy."

   "Industry has shown interest in the lack of upfront capital costs to achieve
   effective Phosphate reduction and the positive effect on odour pollution, 
   which is also a significant problem. We believe these 13 lagoon treatments 
   will set the benchmark for the CAFO industry and will substantiate an active 
   marketing campaign for extensive roll out in the USA and eventually Europe."

2. ViroPhosTM contract - The first to a US wastewater treatment facility

   Virotec Aquasolve has been contracted by one of South Carolina's major water
   utilities to reduce the Phosphate in the effluent of two of their wastewater
   treatment plants on a weekly basis.

   The amount of revenue that will be generated from this specific contract
   utilising ViroPhosTM reagents will vary, based on the results of the analyses
   required by the customer, but it is expected to be approximately $US100,000 
   per annum.

   Neil Bardach, Virotec USA's CEO, states, "US wastewater treatment facilities
   faced with a Phosphate problem, (a substantial market), should take 
   confidence from the significance of this contract as it demonstrates 
   commercial acceptance following extensive field trials."

   "Our wastewater treatment is conducted at the front end, in the primary
   treatment lagoons. It financially benefits the customer because it eliminates
   the need for upfront capital costs and, in this particular industry, it
   decreases ongoing operating costs. This translates into permanent savings.
   Additional benefits include a reduction in odour and Ammonia, which also 
   helps to prolong the life of the primary treatment lagoons."

3. Regulatory Approval of Virotec's Arsenic ProactivTM product

   The Florida Department of Environmental Protection (FDEP) has accepted 
   "Arsenic ProActivTM as an in situ groundwater remediation product for the 
   immobilisation of dissolved arsenic and other suitable dissolved metals by 
   chemical absorption".

   Virotec targeted remediation of arsenic in Florida as the state accounts for 
   10% of the arsenic input into the USA and this approval enables Virotec to 
   move forward with its marketing strategy in Florida.

Executive Chairman, Brian Sheeran comments, "Since Virotec entered into the
joint venture last year to form Virotec Aquasolve, we have:

   a) Constructed a substantial manufacturing facility in South Carolina,
      which has passed inspection by the National Sanitation Foundation (NSF) 
      for the production of reagents at drinking water standards;
   b) Achieved South Carolina Department of Health and Environmental Control
      (DHEC) approvals for the treatment of Radium in drinking water and 
      Phosphate in wastewater after extensively monitored field trials in 
      commercial environments;
   c) Achieved Florida Department of Environmental Protection (FDEP) approval
      for the treatment of Arsenic in ground waters and soils;
   d) Established inroads, via the market leader, to a large, new, 
      market-driven market for agricultural solid farm waste and developed 
      efficient implementation mechanisms that satisfy the customer's specific 
      needs; and
   e) Achieved our first contract with a major US water treatment facility."

Brian Sheeran concludes, "The USA is our largest target market and Virotec has
brought considerable expertise to the joint venture in order to expedite
decision making in regard to a wide range of activities that include integrating
market, development, commercial and regulatory agendas. We are focused on market
drivers that will deliver quantitative returns to shareholders and substantially
expand the Company."

For further information please contact:-

Angus Craig, Company Secretary on +617 55733 3533 or email mail@virotec.com.

Nick Westlake, Numis Securities Limited on +44 207 2601000



Additional Information on Virotec AquaSolve LLC ("AquaSolve")

AquaSolve is a specialty water treatment company based in South Carolina, and is
66.7% owned by Virotec International plc and 33.3% owned by CW Partners, part of
the Wade Craven Group.

AquaSolve has been initially licenced by Virotec to market ViroFlowTM Technology
and systems using Radium ProActivTM, Arsenic ProActivTM and ViroPhosTM reagents 
for removal of Radium, Arsenic, and Phosphate, respectively, in South Carolina,
North Carolina, Virginia, and Georgia and more recently Florida. In addition to
the above, the AquaSolve team assists in the development of the systems
necessary to deliver the solutions to address the environmental problems in the
region.

AquaSolve has also assisted in the Radium ProActivTM and Arsenic ProActivTM
reagents being certified by the National Sanitation Foundation (NSF) in the USA
for use in the treatment of drinking water.



                           VIROTEC INTERNATIONAL plc
                            Company Number 05796515
                                www.virotec.com







                      This information is provided by RNS
            The company news service from the London Stock Exchange

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