TECHTRONIC IND<0669> - Announcement


Techtronic Industries Company Limited

Announcement

The Company has entered into a non-legally binding letter of intent to 
purchase a material portion of the assets of Ryobi Limited's North 
American power tool businesses and 100% interest in two of Ryobi Limited's 
subsidiaries.

The Company has entered into a non-legally binding letter of intent to 
purchase a material portion of the assets of Ryobi Limited's ("Ryobi") 
North American power tool businesses and 100% interest in two of Ryobi's 
subsidiaries (the "Proposed Transaction"). Ryobi is a company listed on 
the Tokyo Stock Exchange and is a global die caster and producer of 
finished goods such as printing equipment, sports and leisure products and 
power equipment. Ryobi has representatives on the board of directors of 
the Company and to the best of the Company's knowledge, is a substantial 
shareholder of the Company. The Proposed Transaction is subject to 
completion of due diligence, execution of a definitive purchase and sale 
agreement and receipt of required approvals. The Company and Ryobi have 
yet to agree on the definitive terms of the Proposed Transaction 
(including the purchase price). It is, however, contemplated that the 
consideration for the Proposed Transaction will be satisfied in cash and 
the formal conditional sale and purchase agreement should be signed by the 
parties in or about May 2000. The Proposed Transaction, if materialized, 
will constitute a notifiable transaction of the Company under the Listing 
Rules but will not result in a change in the control of the Company.

The Company is principally engaged in the manufacture and sale of cordless 
power tools and other electric products. The Company has long been a major 
supplier to Ryobi. The Proposed Transaction, if materialized, will enable 
the Company to expand its power tool business to include corded portable 
electric tools and benehtop tools, and will enable the Company to 
manufacture and sell Ryobi branded power tools in North America.

Shareholders and potential investors should note that the Proposed 
Transaction is subject to further negotiations between the parties and may 
or may not materialize. Accordingly, shareholders and potential investors 
should exercise caution with dealing in the Company's shares.

The Company will make such further announcement as and when there is any 
material developments regarding the Proposed Transaction.

By Order of the Board of
Techtronic Industries Company Limited
Chi Chung Chan
Company Secretary

Hong Kong, 29th March 2000