Statement re Kidron

RNS Number:3270P
Technoplast Industries Ld
03 September 2003

R. YOHAY & CO., LAW OFFICES



TOP  TOWER,  50, DIZENGOFF ST., TEL AVIV 64332

FAX: [phone]     e-mail: [e-mail] TEL: [phone]

ROBERT YOHAY
GILL RIMON
EYNAT BRETSHNAIDER

Tel Aviv, 1 September 2003


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


Dear Sir,



         RE:      Technoplast Industries Ltd - Immediate report



Technoplast Industries Ltd. (hereinafter: "the Company") has announced to the
Tel Aviv Stock Exchange and to the Israeli Securities Authority, as an immediate
report, that further to the memorandum of understanding signed by the Company
and Kidron management and Holdings (1961) Ltd. and others (hereinafter: "Kidron
"), the Company and Kidron signed, on 31 August 2003, an agreement pursuant to
which Kidron shall transfer to the Company, by way of merger, all of the issued
and paid up share capital of Kidron Plastics Ltd. (a company active in the field
of import and marketing of raw materials for the plastic industry), 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.



The rate of Kidron's holdings in the Company was determined on the basis of
evaluations performed by an outside non partial evaluator.



The completion of the above transaction is subject to several conditions
precedent and is subject to receipt of duly required approvals, including the
approval of the Company's general meeting.



The Kidron group operates in Europe and in Israel by means of subsidiaries. Such
subsidiaries operate in a variety of fields related to production and supply of
raw materials and other industrial resources.



A preliminary report of the Issuance Report will be submitted to the Israel
Securities Authority by September 14, 2003.



                                Yours Sincerely,



                                Gill Rimon, Adv.

                          R. Yohay & Co., Law Offices




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