Including destructively interfering off-diagonal transitions of diffraction-dissociation type, we arrive at a formulation of GVD for exclusive vector-meson production in terms of a continuous spectral representation of dipole form. The transverse cross-section, σ T,γ * p→V p , behaves asymptotically as 1/Q 4 , while R V ≡ σ L,γ * p→V p /σ T,γ * p→V p becomes asymptotically constant. Contributions violating s-channel helicity conservation stay at the 10-15% level established in lowenergy photoproduction and diffractive hadron-hadron interactions. The data for φ-and ρ 0 -meson production for 0 ∼ < Q 2 ∼ < 20 GeV 2 from HERA are found to be in agreement with these predictions.