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

Tenancy Agreement for leasing of premises by
Sincere Place Limited to Universal Dockyard Limited dated 
9th February, 2000

The purpose of this announcement is to inform shareholders 
of UDL Holdings Limited ("UDL Holdings") and the investing 
public of the captioned transaction made between a 
subsidiary of UDL Holdings and a connected person pursuant 
to the requirements under Chapter 14 of the Rules Governing 
the Listing of Securities on The Stock Exchange of Hong Kong 
Limited (the "Listing Rules").

INFORMATION REGARDING THE TENANCY AGREEMENT

Date of Agreement:
9th February, 2000

Landlord:
Sincere Place Limited, a company in which Mr. Leung Yat Tung, 
chairman and director of UDL Holdings Limited, holds 
approximately 99% of its beneficial interests.

Tenant:
Universal Dockyard Limited, a 98.75% owned subsidiary of UDL 
Holdings.

Premises Leased:
All those pieces or parcels of ground situate lying and being 
at House 2, Hong Hay Villas, DD231, Lot 12, Sai Kung, New 
Territories, Hong Kong (the "Premises").

Leased Term:
Two years, commencing 1st February, 2000 and expiring on 31st 
January, 2002, with an option to renew the tenancy at the 
same term.

Rental:
Hong Kong Dollars Eighty-five Thousand Only (HK$85,000.00) 
(inclusive of rates, management fees, water charges, 
electricity charges, gas charges, telephone charges, and 
distil water) per calendar month payable (by auto pay) in 
advance on the 1st day of each calendar month clear of all 
deductions (Crown Rent, and Property Tax only excepted) and 
the first such payments to be apportioned and made on the 
signing of this Agreement.

Deposit:
Hong Kong Dollars One Hundred and Seventy Thousand Only 
(HK$170,000.00) redeemable at the expiry of the tenancy.

Intended Use of the Leased Premises:
The Premises are used as staff quarters for the Chairman of 
UDL Holdings.

Sincere Place Limited:
Sincere Place Limited is an investment holding company the 
principal activities of which are property investment. The 
only asset of Sincere Place Limited is the premises.

UDL Holdings Limited:
UDL Holdings Limited is an investment holding company. The 
principal activities of its subsidiaries are the provision 
of civil engineering and sub-contracting services, vessel 
hiring, structural steel engineering, ship building and 
repairing, plant hiring and marine engineering and related 
technical service.

For UDL Holdings, the above tenancy agreement constitutes 
a connected transaction under the Listing Rules ("the 
Transaction"). The directors of UDL Holdings (the 
"Directors"), including the independent non-executive 
Directors excluding Mr. Leung Yat Tung who is interested 
party of the connected transaction, consider that the terms 
of the Transaction are fair and reasonable as far as the 
shareholders of UDL Holdings are concerned and the 
Transaction was conducted in the ordinary and usual course 
of the UDL Holdings' business and on normal commercial terms.

It is also the opinion of the Directors excluding Mr. Leung 
Yat Tung who is an interested party, including the 
independent non-executive Directors that the rental payable 
by Universal Dockyard Limited under the Transaction was 
determined based on the current market rental as quoted by 
a property agency for similar properties nearby.

As the aggregate consideration of the Transaction represents 
less than 3% of the book value of the net tangible assets 
of UDL Holdings as shown in its audited consolidated accounts 
for the year ended 31st March, 1998, 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 UDL Holdings. Details of the Transaction 
will be included in the next published annual report and 
accounts of UDL Holdings.

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

Hong Kong, 11 February 2000