09:40     KINGBOARD CHEM<00148> - Announcement (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)                                                         
                                                                              
    MAJOR TRANSACTION                                                         
                                                                              
    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)                                        
                                                                              
    and                                                                       
                                                                              
    Mandatory unconditional cash offer in Singapore by                        
    Citigroup Global Markets Singapore Pte. Ltd.                              
    on behalf of                                                              
    ELITELINK HOLDINGS LIMITED,                                               
    an indirect wholly-owned subsidiary of                                    
    Kingboard Chemical Holdings Limited,                                      
    to acquire all of the issued and paid-up ordinary                         
    shares in the capital of                                                  
    ELEC & ELTEK INTERNATIONAL COMPANY LIMITED                                
    (other than those already owned by the Singapore                          
    Offeror or parties acting in concert with it and those                    
    owned by Elec & Eltek International Holdings Limited)                     
                                                                              
    Financial Adviser to the Hong Kong Offeror                                
                                                                              
    Citigroup Global Markets Asia Limited                                     
                                                                              
    This announcement is made pursuant to the                                 
    Undertakings, particulars of which are set out in the                     
    Major Transaction Circular.                                               
                                                                              
    Reference is made to the announcement dated 12 October                    
    2004, the circular dated 3 November 2004 (the "Major                      
    Transaction Circular") and the announcement dated 6                       
    January 2005 (the "Extension Announcement") issued                        
    by the Company in respect of, among other things, the                     
    Transactions. Unless otherwise defined, terms                             
    defined in the Major Transaction Circular shall have                      
    the same meanings when used in this announcement.                         
                                                                              
    1.      FURTHER INFORMATION IN RELATION TO THE E&E GROUP                  
                                                                              
    As stated in the Major Transaction Circular, the Hong                     
    Kong Offers had been made by the Company on an                            
    unsolicited basis and the Company's decision to                           
    launch the Hong Kong Offers was based entirely on                         
    publicly available information on the E&E Group. As                       
    such, prior to the commencement of the Hong Kong                          
    Offers, due diligence could only be and had been                          
    performed on E&E Group's publicly available                               
    information and market research by the Company and                        
    the Hong Kong Offeror. Save for information