Statement re Settlement

RNS Number:4635Y
Technoplast Industries Ld
09 May 2004

                                                    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, 6 May 2004


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 on 4 May 2004, the Company's board of directors approved the
Company's entering into a settlement with the four banks that are secured
creditors of the Company: Bank Leumi Le-Israel Ltd., Israel Discount Bank Ltd.,
Bank Hapoalim Ltd. and Bank Hamizrachi Hameuchad Ltd..



Pursuant to the above settlement, the Company's debt to the above banks
(currently - 65 million NIS.) will be settled as follows:



-           The Company shall pay the above banks NIS. 15 million within six
months of the Tel Aviv district court's approval of the Company's proposed
creditors arrangement  (hereinafter: "the Set Date").



-           The Company shall pay the above banks an additional sum of NIS. 28
million in installments over a 10 year period. Such payments shall be made by
loans (in US$) that the above banks shall lend the Company. The said loans shall
bear interest at a rate to be determined by each of the banks and the Company.



-           NIS. 10 million shall be paid by way of participation of the above
banks in the Company's profits. Such participation shall be limited to a total
of 25% (divided between the above banks according to their relative share in the
Company's debt to the above banks) of the Company's annual profit before tax
deriving from the Company's manufacturing activity and/or the Company's sales of
plastic goods activity and shall also be limited to profits of over US$
1,100,000 annually, calculated according to the representative rate of exchange
at the time of the publication of the Company's relevant audited financial
reports.



-           The above banks shall strike NIS. 12 million of the Company's debt
to the above banks.



The above settlement is subject to a condition precedent: receipt of the
Tel-Aviv district court's approval to the Company's proposed creditors
arrangement.



As part of the above settlement the Company has undertaken to allot option
warrants exercisable into the Company's ordinary shares to the above banks.







                                Yours Sincerely,





                                Gill Rimon, Adv.

                          R. Yohay & Co., Law Offices




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