General Meeting

RNS Number:7979P
Technoplast Industries Ld
16 September 2003

R. YOHAY & CO., LAW OFFICES
TOP  TOWER,  50, DIZENGOFF ST., TEL AVIV
FAX: [phone]   e-mail: [e-mail]      TEL:[phone]

Tel Aviv, 15 September 2003

The London Stock Exchange
Company Announcements Section
Fax: [phone]

Dear Sir,


         RE:             Technoplast Industries Ltd - Immediate report

Technoplast Industries Ltd. (hereinafter "Technoplast" or "the
Company") announced, to the Israel Securities Authority (ISA) and to the Tel
Aviv Stock Exchange (TASE), as an immediate report, that on the evening hours of
14 September 2003 Technoplast deposited, at the ISA, a preliminary report with
respect to an exceptional private offer of Technoplast's shares to Kidron
Management and Holdings (1961) Ltd. (hereinafter: "Kidron") and Messrs. Michael
and Sigal Suzs, as a preliminary measure towards the approval of the said
private offer by the general meeting of the Company's shareholders.

The said general meeting shall be convened on 27 October 2003 at 9:30 a.m., in
R. Yohay & Co.'s Law offices at Top Tower, 50 Dizengoff St., Tel Aviv, Israel.

On 31 August 2003, the Company's board of directors approved an exceptional
private offer pursuant to which Kidron and Messrs. Michael and Sigal Suzs shall
transfer to the Company, by way of merger, all of the issued and paid up share
capital of Kidron Plastics Ltd. in consideration for an allotment of the
Company's shares which shall grant Kidron 75 % of the issued and paid up share
capital of the Company on a fully diluted basis.

Technoplast's Board of directors gave the following reasons to its resolution to
approve the said private offer:

- The addition of a profitable activity alongside with steady and substantial
cash flow is an element of high importance to the Company's activity.

- In light of the Company's financial state, the prolonging of the Company's
capital raising proceedings and the prolonging of the Company's negotiations
with the banks respect to increasing the Company's credit lines, an agreement
with a new investor is the fastest way for the Company to reach an agreement
with its financing banks and to ensure receipt of the proper financing required
for the Company's activity.

- The merger ratio is a fair ratio that has been determined on the basis of an
evaluation performed by an independent third party. The evaluation was based on
the Company's activity and Kidron Plastics Ltd.'s activity.

- The said transaction is the only real and concrete transaction offered to the
Company.

Yours Sincerely,

Gill Rimon, Adv.
R. Yohay & Co., Law Offices

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