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Masthead astonished by high valuation

Media release

Wednesday 23rd March 2005

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Masthead Equities has said it was astonished by the high valuation placed on Vertex by Grant Samuel & Associates.

In a press releaqse issued last night Masthead's Mark Stewart commented: "We are very surprised by this high valuation given the track record of this company both in terms of its share price, which has never traded above its $2.05 listing price, and its earnings performance.

"On the face of it shareholders, and indeed Vertex's independent directors, are being asked to believe in a lot of blue sky in accepting this valuation. This is territory the company has never achieved before. Frankly we are struggling with it.

"We urge shareholders to consider the fact that our offer of $1.90 a cash share is real and on the table now as opposed to a theoretical future valuation that may never ever be realised."

Stewart said he hoped that Vertex's Independent Directors would now do the sensible and responsible thing and advise shareholders that if Masthead's bid fails it is highly likely that the Vertex share price will plunge.

The Grant Samuel valuation is 50% to 70% above the Vertex price prior to speculation about corporate activity. "This is truly incredible," Stewart said.

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