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           KEL Holdings Limited
        (incorporated in Bermuda        (incorporated in Bermuda
        with limited liability)         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 that at the hearing today, the Court made an order 
dismissing the 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.

As previously announced on 2 February, 1999, 31 March,  1999, 22 
April, 1999 and 20 May, 1999, the captioned winding-up petition is 
filed by the Petitioners against Kenworth. At the hearing today, 
the Court made an order dismissing the winding-up petition with the 
consent of all parties concerned.

UDL and KEL are still negotiating a scheme of arrangement with 
creditors.

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. The Boards of UDL and KEL further 
confirm that no material change has occurred since the recently 
announced information.

Meanwhile shareholders of UDL and KEL should exercise caution when 
dealing in the shares of UDL and KEL.

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

Hong Kong, 19 July, 1999