10:30     KINGBOARD CHEM<00148>E&E INT'L<00033>-J.Ann&Suspend<00033>-1        

    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.                                                     
                                                                              
    KINGBOARD CHEMICAL HOLDINGS LIMITED                                       
    (Incorporated in the Cayman Islands with limited                          
    liability)                                                                
    (stock code: 148)                                                         
                                                                              
    EASE EVER INVESTMENTS LIMITED                                             
    (Incorporated in the British Virgin Islands with                          
    limited liability)                                                        
                                                                              
    Elec & Eltek International Holdings Limited                               
    (Incorporated in Bermuda with Limited Liability)                          
    (stock code: 33)                                                          
                                                                              
    JOINT ANNOUNCEMENT                                                        
                                                                              
    CLOSE OF THE HONG KONG OFFERS                                             
                                                                              
    PRIVATIZATION OF                                                          
    ELEC & ELTEK INTERNATIONAL HOLDINGS LIMITED                               
                                                                              
    SUSPENSION OF TRADING OF THE SHARES OF                                    
    ELEC & ELTEK INTERNATIONAL HOLDINGS LIMITED                               
                                                                              
    Voluntary conditional cash offers in Hong Kong by                         
    Citigroup Global Markets Asia Limited                                     
    on behalf of                                                              
    EASE EVER INVESTMENTS LIMITED,                                            
    an indirect wholly-owned subsidiary of                                    
    Kingboard Chemical Holdings Limited,                                      
    to acquire all of the issued shares in the capital                        
    of,                                                                       
    and for cancellation of all outstanding options of,                       
    ELEC & ELTEK INTERNATIONAL HOLDINGS LIMITED                               
    (other than those already owned by the Hong Kong                          
    Offeror or                                                                
    parties acting in concert with it)                                        
                                                                              
    Financial Adviser to the Hong Kong Offeror                                
                                                                              
    Citigroup Global Markets Asia Limited                                     
                                                                              
    CLOSE OF THE HONG KONG OFFERS                                             
    The Hong Kong Offers closed at 4:00 p.m. on 6 January                     
    2005.                                                                     
                                                                              
    ACCEPTANCE LEVEL OF THE HONG KONG OFFERS                                  
    As at 4:00 p.m. on 6 January 2005, the Hong Kong Offeror                  
    had received valid acceptances in respect of                              
    828,185,764 E&E Shares under the Hong Kong Share Offer,                   
    representing approximately 67.63% of the entire                           
    issued share capital of E&E. One valid acceptance                         
    under the Hong Kong Option Offer in respect of                            
    22,000,000 E&E Options had also been received,                            
    representing 100% of the outstanding E&E Options                          
    granted under the share option scheme of E&E adopted                      
    on 29 October 2001. As at the date of the Offer                           
    Announcement, the Hong Kong Offeror and parties                           
    acting in concert with it were interested in an                           
    aggregate of 336,799,000 E&E Shares, representing                         
    approximately 27.50% of the entire issued share                           
    capital of E&E as at the date of the Offer Announcement.                  
    The Company, being a concert party of the Hong Kong                       
    Offeror, has acquired an aggregate of 1,645,000 E&E                       
    Shares at a price of HK$1.90 per E&E Share on the market                  
    during the period from 30 December 2004 up to and                         
    including the date of this announcement. Taking into                      
    account the valid