Further re Agreements

RNS Number:0670R
Kidron Industrial Holdings Ld
11 February 2007

                        Kidron Industrial Holdings Ltd.

                  (Former name - Technoplast Industries Ltd.)



Attention:                                         Attention:
Israel Securities Authority             The Tel-Aviv Stock Exchange
http://www.isa.gov.il/                     http://www.tase.co.il/


Re: Kidron Industrial Holdings Ltd. - Immediate Report

In accordance with Regulation 36(A) of the Securities Regulations (Periodic and
Immediate Reports) 5730-1970

Further to the immediate report of February 5, 2007, Kidron Industrial Holdings
Ltd. (formerly Technoplast Industries Ltd., hereinafter, "Kidron Industrial
Holdings") hereby provides notice of the following:

 1. Pursuant to the agreement of November 11, 2004 and the addendum to the
    agreement dated February 22, 2006, by and between Kidron Plastics
    Distribution Ltd. (hereinafter: "Plastic Distribution"), a subsidiary that
    is wholly owned by Kidron Industrial Holdings, and the First International
    Bank of Israel Ltd. (hereinafter: "International Bank"), the International
    Bank provided Plastic Distribution with credit. The credit is secured by
    means of an ongoing lien in favor of the International Bank (hereinafter:
    the "Agreement").

 2. In light of the difficult financial situation of Kidron Industrial Holdings
    and Plastic Distribution, as well as the lack of resources for the regular
    payment of their obligations, including Plastic Distribution's obligations
    to the International Bank, on February 7, 2007, representatives of Kidron
    Industrial Holdings met with the International Bank. During such meeting,
    the International Bank was notified of the state of affairs and functioning
    of Kidron Industrial Holdings and Plastic Distribution, as well as the
    possibility of taking measures to obtain an order for stay of proceedings.

 3. In light of the aforementioned meeting, in the afternoon hours of February 7,
    2007, Plastic Distribution received a letter from the International Bank in
    which it was requested to comply with the provisions of the Agreement. (The
    letter further stated that) in view of the current state of affairs of
    Kidron Industrial Holdings and Plastic Distribution, and the implications
    thereof on the secured assets of the International Bank, and in accordance
    with the provisions of the Agreement, the International Bank has grounds to
    demand the immediate payment of Plastic Distribution's debts and
    obligations. The International Bank stated, in its letter, that it would
    take immediate action to enforce its rights.

 4. In addition to the aforementioned letter that was sent to Plastic
    Distribution on February 7, 2007, the International Bank send a letter to
    Mr. Michael Zuz, the controlling shareholder of the Corporation and the
    guarantor for Plastic Distribution's debts, in which it demanded the
    immediate payment of Plastic Distribution's debts within 15 days from the
    date of the letter. Alternatively, the International Bank demanded that it
    be presented with a repayment plan for such debt within the same period of
    time.

 5. In addition, on February 7, 2007, Plastic Distribution received a letter from
    the Union Bank of Israel Ltd. (hereinafter: "Union Bank"), which stated that
    Plastic Distribution's remaining debt to Union Bank as of February 6, 2007
    amounted to NIS 3,413, and that additional debts remained for shekel loans
    that were provided to Plastic Distribution on August 4, 2004, in the
    aggregate amount of NIS 3,941,661 (hereinafter: the "Loan Agreement"). In
    light of the foregoing, and in accordance with the Loan Agreement and the
    Corporation's credit terms with Union Bank, Union Bank has grounds to demand
    the immediate payment of Plastic Distribution's debts and obligations,
    within three days of the posting of such letter.

 6. As of this immediate report, Plastic Distribution's remaining debts and
    obligations towards the International Bank amount to approximately NIS 5.5
    million, and its remaining debts and obligations to Union Bank amount to
    approximately NIS 4 million. Kidron Industrial Holdings estimates that
    Plastic Distribution will be unable to fulfill its obligations toward the
    International Bank and Union Bank pursuant the Agreement and the Loan
    Agreement, respectively, and will be unable to provide immediate repayment
    of the debt.


Sincerely,


     Kidron Industrial Holdings Ltd.




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