UDL HOLDINGS<0620> - Exceptional Price Movement

The Stock Exchange has received a message from UDL Holdings Limited which 
is reproduced as follows:-

"This statement is made at the request of The Stock Exchange of Hong Kong 
Limited.

We had noted the recent increase in the price of the shares of the Company 
and wish to state that we are not aware of any reasons for such increase 
save as the announcement published on 15 March 2000.

Except as aforesaid, we also confirm that there are no negotiations or 
agreements relating to intended acquisitions or realisations which are 
discloseable under paragraph 3 of the Listing Agreement, neither is the 
Board aware of any matter discloseable under the general obligation 
imposed by paragraph 2 of the Listing Agreement, which is or may be of a 
price-sensitive nature.

Further to the two announcements dated 2 May 1998 and dated 29 February 
2000, and the circular dated 1 March 2000, i) the Board announces that 
through two letters dated 15 March 2000 of the concerned independent 
private company (Wonderland Development Limited ("Wonderland") received by 
the Company and KEL respectively after close of business on the same day, 
Wonderland confirm that they are now interested in 300,000,000 shares in 
KEL which represent 75% of KEL's total issued share capital by virtue of 
the foreclosure of the KEL shares pledged to them to secure the Loan 
extended to the Group on 1 April 1998; and ii) the Board reiterates that 
KEL is not a part of the Reorganization Proposal and that the outcome of 
the proposed restructuring of KEL and its subsidiaries has no effects onto 
the position of the Group which is now having the Reorganization 
Proposal being implemented and the Scheme of Arrangement of the Company 
and its 24 number of subsidiaries having approved by their respectively 
creditors in the relevant court meetings held on 14 March 2000.

Accordingly, KEL is no longer a subsidiary of the Company and the 
assumptions made in respect of KEL's position under the Reorganisation 
Proposal remain unchanged and valid.

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

Made by the order of the Board of UDL Holdings Limited (the "Board"), the 
directors of which individually and jointly accept responsibility for the 
accuracy of this statement.

By Order of the Board 
UDL Holdings Limited 

Leung Yat Tung
Chairman

Hong Kong, 17th March, 2000"