VOW Announcement - 6.7.2009

There has been some speculation in the financial press over the weekend about the current financial position of Vasanta Group. Much of this speculation is alarmist and misleading.

The current situation is as follows:

Like most businesses in the office products sector Vasanta has experienced a substantial downturn in sales and a severe reduction in trade credit insurance. For some weeks the Vasanta Board has been in discussions with its shareholders and lending banks to effect a restructuring of its finances. These discussions are now at an advanced stage and are likely to involve the introduction of new finance from a new institutional shareholder.

We continue to have the support of our lending banks.

The Board believes that it is in the best interests of the Group, its customers, employees and suppliers, to conclude these transactions as swiftly as possible and is working hard to that end.

I would like to thank our customers, employees and suppliers, who have continued to remain extremely supportive and helpful during these difficult times for our industry.

I am confident that we will reach a satisfactory outcome within a very short while and will then be well-positioned for the future.

Richard Martin Group

CEO