** Update 11-3-2007 **

Vanessa Hudgens has officially signed a contract with Disney Channel to star in High School Musical 3. She will also be receiving a substantial raise in pay for the third installment of the hit musical. This puts an end to the rumors that she has been let go by the Disney Channel.

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Vanessa Hudgens issued the following statement in regards to the nude photos that surfaced on the internet: "I want to apologize to my fans, whose support and trust means the world to me. I am embarrassed over this situation and regret having ever taken these photos. I am thankful for the support of my family and friends."

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The Disney Channel has issued a statement in regards to the nude photos of Vanessa Hudgens that were taken by Zac Efron. "The Disney Channel stands by Vanessa, and we hope she has learned a valuable lesson". The statement was issued by Patti McTeague from Disney Channel Public Relations.

The Disney Channel denies a published report that Vanessa Hudgens will be dropped from the upcoming feature film "High School Musical 3." That movie is in development and negotiations with the stars are incomplete. Negotiations WILL continue with Vanessa Hudgens for the role of Gabriella in the upcoming production.