Re Agreement

RNS Number:1028P
Kidron Industrial Holdings Ld
07 January 2007

                                 (Kidron Logo)



                        Kidron Industrial Holdings Ltd.
                  (Former name - Technoplast Industries Ltd.)

January 7, 2007

Re: Kidron Industrial Holdings Ltd. - Immediate Report

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

Kidron Industrial Holdings Ltd. (hereinafter: the "Company") hereby provides
notice of the following:

 1. In accordance with the agreement regulating the Company's debts and
    obligations to Bank Leumi LeIsrael B.M., Bank Hapoalim B.M., Israel Discount
    Bank Ltd. and United Mizrahi Bank Ltd. (the "Banks"), which was entered into
    on May 3, 2004, the Company was provided various loans, including a loan for
    a period of ten years, to be paid in equal, consecutive and quarterly
    installments (the "Bridge Loan"). In July 2005 an addendum to the
    aforementioned agreement was signed (hereinafter together: the "Inter-Bank
    Agreement").

 2. On December 14, 2006, payment of one of the quarterly installments of the
    Spread Loan, in the amount of NIS 420,000, became due. This payment was due
    to Bank Leumi LeIsrael B.M. ("Bank Leumi"). The Company failed to pay such
    installment to Bank Leumi and as of this immediate report, the Company has
    encountered material difficulty in paying the aforementioned amount. The
    Company conducted negotiations with the Bank regarding the postponement of
    the payment date, and a meeting was set for January 14. On December 12, 2006
    (two days prior to the date of payment), Bank Leumi, in response, demanded
    that the Company satisfy the provisions of the Inter-Bank Agreement,
    including the timely payment of the aforementioned installment. However,
    notwithstanding the foregoing, the Bank insists on its statements that
    appear in its letter of December 12.

 3. In light of the foregoing, and in accordance with the Inter-Bank Agreement,
    Bank Leumi and/or any of the other banks is entitled to demand the Company's
    immediate payment of its debts and obligations, effective within 14 days
    from receiving written notice from Bank Leumi and/or any of the other banks,
    as applicable, regarding the breach.

 4. In addition, it is noted that the Company failed to provide the complete
    quarterly installment of NIS 420,000 to Israel Discount Bank. However, with
    regard to this installment, the Company received the Bank's consent to
    postpone the payment thereof.

 5. As of the date of this immediate report, the Company's remaining debts and
    obligations towards Bank Leumi total approximately NIS 10 million. The
    Company's remaining debts and obligations to all of the banks that are
    parties to the Inter-Bank Agreement (including Bank Leumi) total
    approximately NIS 23 million.


Sincerely,



Kidron Industrial Holdings Ltd.


                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

AGRBRMRTMMAMMFR