UDL HOLDINGS<0620> & KEL HOLDINGS<0681> - Joint 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)

KEL Holdings Limited
(Incorporated in Bermuda with limited liability)

JOINT ANNOUNCEMENT

SUMMARY

The respective board of directors (the "Board") of UDL Holdings 
Limited ("UDL") and the Board of KEL Holdings Limited ("KEL"), 
a 75% subsidiary of UDL, would like to update the shareholders 
and the public on the postponement of the court hearing date 
of a winding-up petition presented by Mr. Yun Wing Hong together 
with 83 other claimants (the "Petitioners") against UDL 
Kenworth Engineering Limited ("Kenworth"), a wholly-owned 
subsidiary of KEL, to 19 July, 1999.

As previously announced on 2 February, 1999, 31 March, 1999 
and 22 April, 1999, the captioned winding-up petition is filed 
by the Petitioners against Kenworth.  As ordered by the Judge 
on 18 May, 1999, the aforesaid hearing on 24 May, 1999 will 
be vacated and  be adjourned to 19 July, 1999.

As KEL is still negotiating a scheme of arrangement with 
creditors, the Boards of UDL and KEL are of the view that the 
said petition has no impact on UDL and KEL.  The Boards of UDL 
and KEL further confirm that no material change has occurred 
since the recently announced information.

Save as disclosed herein, the Boards of UDL and KEL are 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 UDL and KEL should exercise caution 
when dealing in the shares of UDL and KEL.  Further announcement 
will be made when there is any material development regarding 
the above matter.

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

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

Hong Kong, 20 May, 1999