E&E INT'L<0033> - Announcement

The Stock Exchange of Hong Kong Limited takes no responsibility for the 
contents of this announcement, makes no representation as to its accuracy 
or completeness and expressly disclaims any liability whatsoever for any 
loss howsoever arising from or in reliance upon the whole or any part of 
the contents of this announcement.

Elec & Eltek International Holdings Limited
(Incorporated in Bermuda with limited liability)

ANNOUNCEMENT

SUMMARY

Further to the announcement of the Company dated 13th December 1999, the 
Board wishes to provide shareholders of the Company with additional 
information on the rationale of the proposed disposal of the PCB Business 
by its approximately 42% owned associate EEIC, information of which had 
been released by EEIC in Singapore on 17th December 1999.

Investors and shareholders of the Company should exercise caution when 
dealing in the shares of the Company.

Further to the announcement of Elec & Eltek International Holdings Limited 
(the "Company") dated 13th December 1999, the board of directors of the 
Company (the "Board") wishes to provide shareholders of the Company with 
additional information on the rationale of the proposed disposal (the 
"Disposal") of the printed circuit board ("PCB") business ("PCB Business") 
by its approximately 42% owned associate Elec & Eltek International 
Company Limited ("EEIC") pursuant to a letter of intent dated 12th 
December 1999 with an investor (the "Investor").  The following 
information was released by EEIC in Singapore on 17th December 1999:-

"The directors of EEIC ("EEIC Directors") are of the view that the PCB 
industry is becoming increasingly competitive due to several factors, such 
as the continuous expansion of Taiwanese PCB manufacturers' operations 
into the People's Republic of China ("PRC").  Currently, the PCB industry 
in Asia is also very fragmented, and the consolidation trend among PCB 
manufacturers will lead to fewer but larger PCB manufacturers.  These 
factors will bring keener competition into the PCB industry.

To maintain its competitive edge, EEIC has to take part in the short term 
consolidation trend as well as commit to investing in new technology 
continuously.  For example, EEIC has to invest in new plants equipped with 
advanced high-density interconnected technologies, in the PRC or other 
cost-competitive countries, to manufacture high-end multi-layer PCBs in 
order to sustain the growth in profitability.  In addition, EEIC's 
existing production facilities would also need to be continually upgraded 
in view of the rapidly changing pace in PCB technology, and such 
investments would be highly capital-intensive.

Hence, the EEIC Directors view the Disposal as a good opportunity to exit 
this increasingly competitive industry.

It is the current intention of the EEIC Directors to retain the listing of 
EEIC.  The EEIC Directors are currently considering various alternatives 
for EEIC after the Disposal.  These include the search for a new business 
with good prospects for growth and attractive returns, and/or returning 
the cash to shareholders, after taking into consideration the tax 
implications, if any.

The EEIC Directors wish to emphasize that there is no assurance that the 
Disposal will proceed, as it is conditional on, inter alia, agreement on 
the definitive documentation, the completion of a due diligence exercise 
by the Investor and its advisers, and the approval of shareholders in 
general meeting.

In the event that the Disposal proceeds and is completed, EEIC will become 
a cash company.  Pursuant to Clause 1009 of the Singapore Exchange Limited 
("SGX") Listing Manual, the SGX will suspend the listing of EEIC if it 
becomes a cash company, until it has a business that is able to satisfy 
the SGX's requirements for new listing.  The SGX may cancel the listing of 
EEIC if it is unable to meet the requirements for a new listing within a 
period of 12 months.

The EEIC Directors are aware of EEIC Shareholders' concern over the future 
of EEIC and its listing status, and will endeavour to inform EEIC 
Shareholders of developments through timely announcements, as 
appropriate."

As there can be no assurance that the Disposal will actually proceed, 
investors and shareholders of the Company should exercise caution when 
dealing in the shares of the Company.

By Order of the Board
Elec & Eltek International Holdings Limited
David So Cheung Sing
Chairman

Hong Kong, 18th December 1999