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

The board of directors of UDL Holdings Limited and KEL 
Holdings Limited wish to clarify the various articles which 
appeared in the press today.

The respective boards of directors of UDL Holdings Limited 
("UDL") and KEL Holdings Limited ("KEL"), a 75% owned 
subsidiary of UDL, wish to clarify the following which 
appeared in the press today relating to:-

1.      Disposal by UDL of its entire 75% equity interest in KEL

As previously announced on 2 May 1998, the entire 75% equity 
interest in KEL are charged to Wonderland Development 
Limited ("Wonderland") for securing facilities of HK$30 
million to UDL. Wonderland is an independent third party not 
connected with the directors, chief executive or substantial 
shareholders of UDL and KEL or any of their subsidiaries or 
any associates of them as defined in the Listing Rules. As 
at the date of this announcement, the equity interest of UDL 
in KEL has no change. UDL is not in a position and has never 
made any representation to the reporters about any named 
parties in respect of the negotiation for the disposal of 
its entire 75% equity interest in KEL. Furthermore, UDL 
Kenworth Engineering Limited, a wholly-owned subsidiary of 
KEL, has filed an originating summons on 8 September 1999 
to convene a creditors' meeting regarding a proposed 
creditors' scheme of arrangement (the "Scheme of KEL") with 
the High Court of the Hong Kong Special Administrative Region, 
a court hearing will be heard on 1 February 2000. It should 
be noted that the terms of the Scheme of KEL have not yet 
been finalised and may or may not proceed.

2.      Severance Payment

The negotiations concerning the severance payment for 
ex-employees of UDL are yet to be finalised but UDL do not 
rule out this arrangement in the proposed scheme of 
arrangement of UDL as announced on 16 October 1999 as 
accommodation to the interest of the ex-employees.

Meanwhile shareholders of UDL and KEL should exercise 
extreme caution when dealing in the shares of UDL and KEL. 
Further announcement will be made when there is any material 
development regarding the above matters.

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, 22 December 1999