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)

CONNECTED TRANSACTION
Lease Agreement for leasing of premises by
Fonfair Company Limited to Universal Dockyard Limited

SUMMARY

On 10 September 1999, Fonfair Company Limited, a company connected with 
Mr. Leung Yat Tung and Mr. Leung Yuet Keung, directors of UDL Holdings 
Limited (the "Company") entered into a lease agreement with a 98.75% 
owned subsidiary of the Company, Universal Dockyard Limited. The lease 
agreement constitutes a connected transaction for the Company. However, 
the total consideration involved is so small that no approval of the 
Company's independent shareholders is required.

The lease agreement was dated 10 September 1999. However, the Company 
did not inform The Stock Exchange of Hong Kong Limited (the "Stock 
Exchange") of entering into such agreement until 4 October 1999. The 
Stock Exchange is looking into the timing of the making of this 
announcement by the Company and reserves the right to take further action 
against the Company or its directors.

Information regarding the lease agreement between Fonfair Company 
Limited and Universal Dockyard Limited dated 10 September 1999:-

Landlord        :       Fonfair Company Limited, a company in which Mr. 
Leung Yat Tung and Mr. Leung Yuet Keung, directors of the Company, hold 
approximately 67% and 33% of its beneficial interest respectively.

Tenant  :       Universal Dockyard Limited, a 98.75% owned subsidiary of 
the Company

Premises Leased :       All those pieces or parcels of ground situate 
lying and being at Yau Tong Marine Lot No. 2, 3 and 4, Yau Tong Bay, 
Kowloon, Hong Kong

Area    :       37,500 sq. ft.

Leased Term     :       One year from 1 September 1999 to 31 August 2000

Rental  :       HK$226,000.00 per month

Deposit :       HK$452,000.00

Use     :       As shipyard and general office of Universal Dockyard 
Limited

For the Company, the above lease agreement constitutes a connected 
transaction (the "Transaction") under the Rules Governing the Listing 
of Securities on The Stock Exchange of Hong Kong Limited (the "Listing 
Rules"). The directors, including the independent non-executive 
directors, of the Company consider that the terms of the Transaction is 
fair and reasonable as far as the shareholders of the Company are 
concerned; the rental of HK$226,000.00 per month is fair and reasonable 
when compared with the prevailing market rental for similar premises 
nearby and the Transaction was conducted in the ordinary and usual course 
of the business of the Company and on normal commercial terms.

As the annual aggregate consideration of the Transaction represents less 
than HK$10,000,000.00, it falls within the provisions under Rule 14.25(1) 
of the Listing Rules and is therefore not required to be approved by the 
independent shareholders of the Company. Details of the Transaction will 
be included in the next published annual report and accounts of the 
Company for the year ended 31 March 1999 which will be despatched to the 
shareholders on or before 30 November 1999.

The lease agreement was dated 10 September 1999. However, the Company 
did not inform the Stock Exchange of entering into such agreement until 
4 October 1999. The Stock Exchange is looking into the timing of the 
making of this announcement by the Company and reserves the right to take 
further action against the Company or its directors.

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

Hong Kong, 6 October 1999