Stay of Proceedings

RNS Number:2348R
Kidron Industrial Holdings Ld
14 February 2007

                        Kidron Industrial Holdings Ltd.


Date of transmission: February 13, 2007

Reference: 2007-01-309407


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


Immediate Report of an event or matter outside of the Company's normal course of
                                    business


Regulation 36(a) of the Securities Regulations (Periodic and Immediate Reports)
                                   5730-1970

                          Subject: Stay of proceedings


 1. The Company hereby provides notice that today, February 13, 2007, the Company
    filed a Motion for Stay of Proceedings with the Nazareth District Court.
    Such motion requested, among other things, that the Court grant an order
    pursuant to which, for the duration of an initial period ending December 31,
    2007, it would not be possible to continue or to initiate any legal
    proceedings against the applicant, except as permitted by the Court and on
    the terms determined by the Court. The Court was further requested to
    appoint to the Company a special manager and trustee during the term of the
    stay of proceedings, and to approve a creditors' meeting, which would take
    place within 45 days for the purpose of presenting a proposal for a
    creditors' arrangement.

__________________________





 2. The date and time on which the Corporation was first apprised of the event or
    matter:



February 13, 2007 at 1:30 p.m.


Sincerely,
Kidron Industrial Holdings Ltd.


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