09:44     NATIONAL ELEC H<00213> - Announcement (2)                           

                                                                              
    With the recent upturn in Hong Kong's property market, the                
    Directors consider that the Acquisition is a good                         
    investment opportunity for the Group which will further                   
    increase the Company's land portfolio which currently                     
    includes sites in Canada and Hong Kong and strengthen the                 
    earning base of the Company's property division.                          
                                                                              
    The Acquisition will be funded through a combination of                   
    internal resources and bank financing, which is expected                  
    to be in the proportion of approximately 50% and 50%                      
    respectively.                                                             
                                                                              
    The Directors are of the view that the Acquisition is in                  
    the interest of the Company and the Conditions of Sale by                 
    Tender are normal commercial terms, which are fair and                    
    reasonable and in the interests of the shareholders of the                
    Company as a whole as far as the shareholders of the Company              
    are concerned.                                                            
                                                                              
    General                                                                   
                                                                              
    The Acquisition constitutes a discloseable transaction of                 
    the Company under Chapter 14 of the Listing Rules.  A                     
    circular in connection with the Acquisition will be                       
    despatched to the shareholders of the Company as soon as                  
    practicable.                                                              
                                                                              
    Definitions                                                               
                                                                              
    In this announcement, the following terms have the                        
    following meanings: -                                                     
                                                                              
    "Acquisition" acquisition of the Land by the Purchaser                    
    pursuant to the Conditions of Sale by Tender and the Tender;              
                                                                              
    "Company" National Electronics Holdings Limited, a company                
    incorporated in Bermuda and the shares of which are listed                
    on the Stock Exchange;                                                    
                                                                              
    "Conditions of Sale by Tender" the conditions of sale by                  
    tender in respect of the Land which constitute the formal                 
    agreement between the Vendor and the Purchaser upon                       
    acceptance of the tender by the Vendor;                                   
                                                                              
    "Consideration" HK$49,600,000;                                            
                                                                              
    "Directors" the directors of the Company;                                 
                                                                              
    "Group" the Company and its subsidiaries;                                 
                                                                              
    "Independent Third Party" third party independent of the                  
    Company and connected persons of the Company;                             
                                                                              
    "Land" ALL THOSE pieces or parcels of ground respectively                 
    registered in the Land Registry as THE REMAINING PORTION                  
    OF SECTION O OF MARINE LOT NO. 414 and THE REMAINING PORTION              
    OF SECTION P OF MARINE LOT NO. 414 Together with the                      
    messuages erections and buildings thereon (if any) known                  
    as 137 and 138 CONNAUGHT ROAD WEST;                                       
                                                                              
    "Listing Rules" the Rules Governing the Listing of                        
    Securities on the Stock Exchange;                                         
                                                                              
    "Purchaser" Super Plus Limited, a company incorporated in                 
    Hong Kong with limited liability and a wholly-owned                       
    subsidiary of the Company;                                                
                                                                              
    "Stock Exchange" The Stock Exchange of Hong Kong Limited;                 
                                                                              
    "Tender" the tender dated 26th January, 2005 submitted by                 
    the Purchaser for the purchase of the Land; and                           
                                                                              
    "Vendor" Public Power Group Limited which, so far as the                  
    Directors are aware, is a BVI incorporated company                        
                                                                              
                                                                              
    By order of the Board                                                     
    Lee Yuen Ching, Jimmy                                                     
    Chairman                                                                  
                                                                              
    Hong Kong, 28th January, 2005                                             
                                                                              
    At the date of this announcement, the Board of the Company                
    comprises Mr. Lee Yuen Ching, Jimmy, Mr. Lee Yuen Kui, James,             
    Mr. Lee Yuen Wong, Peter, Mr. Lee Yuen Cheor, Edward, Mr.                 
    Tam Hok Lam, Tommy as Executive Directors, Miss Lee Yuen                  
    Yu, Dorathy as Non-Executive Director and Dr. Samson Sun                  
    M.B.E. J.P. and Mr. Chan Chak Cheung, William as Independent              
    Non-executive Directors.