UDL HOLDINGS<0620> - Announcement

The Stock Exchange of Hong Kong Limited takes no responsibility 
for the contents of this announcement, makes no representation 
as to its accuracy or completeness and expressly disclaims any 
liability whatsoever for any loss howsoever arising from or 
in reliance upon the whole or any part of the contents of this 
announcement.

UDL Holdings Limited
(incorporated in Bermuda with limited liability)

ANNOUNCEMENT 

SUMMARY 

The board of directors (the "Board") of UDL Holdings Limited 
(the "Company") would like to update the shareholders and the 
public on the result of the court hearing on 14 May, 1999 in 
respect of the winding-up petition presented by K.Y.H. Steel 
Co. Limited ("KYH") against UDL Argos Engineering & Heavy 
Industries Co. Limited ("UDL Argos"), a wholly-owned 
subsidiary of the Company.

Further to the announcement dated 28 April, 1999, a winding-up 
petition presented by KYH against UDL Argos was heard at the 
High Court of The Hong Kong Special Administrative Region on 
14 May, 1999. The Honourable Justice Le Pichon declined to make 
a winding-up order in respect of UDL Argos today but ordered 
that the petition be adjourned and restored for hearing on 5 
July, 1999 at the same date as the adjourned hearing of the 
Company's application for the implementation of a scheme of 
arrangement under section 166 of the Companies Ordinance (Cap. 
32).

The Company is still negotiating the scheme of arrangement with 
creditors, therefore, the Board is of the view that the 
aforesaid winding-up petition has no significant impact on the 
financial position of the Company.

Save as disclosed herein, the Board of the Company is not aware 
of any other matter discloseable under the general obligation 
imposed by paragraph 2 of the Listing Agreement, which is or 
may be of a price sensitive nature.

Meanwhile shareholders of the Company should exercise extreme 
caution when dealing in the shares of the Company. Further 
announcement will be made when there are any material 
development regarding the above mentioned matter.

   By Order of the Board 
   UDL Holdings Limited 
   Leung Yat Tung 
   Chairman

Hong Kong, 14 May, 1999