Issue with update progress?

We are facing a problem using update progress with the grid. It loads the grid but the progress not shown This is our code below. Can you please suggest what is the solution.

<%@ Page Language="VB" AutoEventWireup="false" CodeFile="Default2.aspx.vb" Inherits="Default2" %> <%@ Register Src="Controls/AjaxGridSelect.ascx" TagName="AjaxGridSelect" TagPrefix="uc1" %> <%@ Register Assembly="ComponentArt.Web.UI" Namespace="ComponentArt.Web.UI" TagPrefix="ComponentArt" %> #Img1 { height: 58px; width: 58px; }

                ImagesBaseUrl="images/" IndentCellCssClass="ind" IndentCellWidth="15" 
                LoadingPanelClientTemplateId="LoadingFeedbackTemplate" 
                LoadingPanelFadeDuration="1000" LoadingPanelFadeMaximumOpacity="60" 
                LoadingPanelPosition="MiddleCenter" PagerButtonHeight="27" 
                PagerButtonHoverEnabled="true" PagerButtonWidth="44" 
                PagerImagesFolderUrl="images/pager/" PagerStyle="Slider" 
                PagerTextCssClass="txt" PageSize="10" RunningMode="Client" 
                SearchOnKeyPress="false" SearchTextCssClass="GridHeaderText" ShowFooter="true" 
                ShowHeader="true" ShowSearchBox="true" SliderGripWidth="9" SliderHeight="20" 
                SliderPopupClientTemplateId="ClientSliderTemplate" SliderPopupOffsetX="20" 
                SliderWidth="150" TreeLineImageHeight="13" 
                TreeLineImagesFolderUrl="images/lines/" TreeLineImageWidth="12" Width="985px">
                <Levels>
                    <ComponentArt:GridLevel AllowSorting="TRUE" AlternatingRowCssClass="BoldRow" DataCellCssClass="DataCell"
                        DataKeyField="SN" GroupHeadingCssClass="TableHeading"
                        HeadingCellActiveCssClass="cell-d" HeadingCellCssClass="cell" HeadingCellHoverCssClass="cell-h"
                        HeadingRowCssClass="row-hd" HeadingTextCssClass="txt" RowCssClass="RowClass" 
                        ShowFooterRow="True" SortAscendingImageUrl="asc.gif" SortDescendingImageUrl="desc.gif"
                        SortImageHeight="5" SortImageWidth="9" TableHeadingCssClass="TableHeading">


                        <Columns>
                            <ComponentArt:GridColumn AllowEditing="False" DataField="SN" Width="1" Visible ="false"  />
                            <ComponentArt:GridColumn AllowEditing="False" DataField="ITEMCODE" Width="100" Align ="Center"  />
                            <ComponentArt:GridColumn AllowEditing="False" DataField="ITEMDESC" Width="150" TextWrap ="true" />
                            <ComponentArt:GridColumn AllowEditing="False" DataField="ITEMTYPE" HeadingText ="TYPE" Width="60" TextWrap ="true"  Align ="Center" />          
                        </Columns>
                    </ComponentArt:GridLevel>
                </Levels>
            </ComponentArt:Grid>
      </ContentTemplate>
</asp:UpdatePanel>
<asp:UpdateProgress ID="UpdateProgress1" runat="server" AssociatedUpdatePanelID="UpdatePanel1" >
    <ProgressTemplate>

          <h2> Loading...</h2> 
        <div>
            <img id="Img1" alt ="" src="Images/loading.gif" />

        </div>
    </ProgressTemplate>
</asp:UpdateProgress>
</div>
</form>