09:44     NATIONAL ELEC H<00213> - 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.                                
                                                                              
    NATIONAL ELECTRONICS HOLDINGS LIMITED                                     
    (Incorporated in Bermuda with limited liability)                          
    (Stock Code: 213)                                                         
                                                                              
    DISCLOSEABLE TRANSACTION                                                  
                                                                              
    On 26th January, 2005, the Purchaser submitted the Tender                 
    for the acquisition of the Land at a consideration of                     
    HK$49,600,000 and the Tender was accepted by the Vendor on                
    the same date.  Pursuant to the Conditions of Sale by Tender,             
    such acceptance constituted a formal agreement between the                
    Vendor and the Purchaser as from the date of the acceptance               
    which is on 26th January, 2005.                                           
                                                                              
    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.                                                              
                                                                              
                                                                              
    The Land                                                                  
                                                                              
    Contract date: 26th January, 2005                                         
                                                                              
    Vendor: Public Power Group Limited.  To the best of the                   
    Directors' knowledge, information and belief having made                  
    all reasonable enquiry, the Directors are not aware of any                
    fact showing that the Vendor and its ultimate beneficial                  
    owner are not Independent Third Parties.                                  
                                                                              
    Purchaser: Super Plus Limited, a wholly-owned subsidiary                  
    of the Company                                                            
                                                                              
    Summary: On 26th January, 2005, the Purchaser submitted a                 
    tender for the acquisition of the Land at a consideration                 
    of HK$49,600,000 and the Purchaser received an acceptance                 
    of offer from the Vendor on the same date.  Pursuant to the               
    Conditions of Sale by Tender, such acceptance constituted                 
    a formal agreement between the Vendor and the Purchaser as                
    from the date of the acceptance which is on 26th January,                 
    2005.  The Company was aware of the invitation to tender                  
    through the agent of the Vendor.                                          
                                                                              
    The Land has a total site area of approximately 2,780 square              
    feet and the consideration was determined by the Company                  
    by reference to an estimate of the market value of the Land               
    in excess of HK$50,000,000 provided by an independent                     
    property valuer on 26th January, 2005.  Based on the                      
    executive Directors' experience in the property industry,                 
    the executive Directors consider that this is a reasonable                
    estimate.                                                                 
                                                                              
    An initial deposit of HK$1,800,000 was paid by the Purchaser              
    upon the submission of the Tender and under the Conditions                
    of Sale by Tender, a further deposit of HK$3,160,000 will                 
    be payable by the Purchaser at or before 12:00 noon on 5th                
    February, 2005 and the balance of the Consideration will                  
    be payable upon completion.  Completion of the Acquisition                
    is expected to take place at or before 1:00 p.m. on 25th                  
    February, 2005.                                                           
                                                                              
    Reasons for and benefits of the Acquisition                               
                                                                              
    The Company is an investment holding company and its                      
    subsidiaries are principally engaged in the manufacture,                  
    assembly and sale of electronic watches and watch parts,                  
    trading of watch movements and watch parts, property                      
    development and investment.                                               
                                                                              
    The Land is located at the western district of Hong Kong                  
    and will be used by the Group for development purpose.  The               
    Land is a vacant site area of about 2,780 square feet and                 
    can be used for commercial or residential purpose.  The                   
    Company has no current plan as to how the Land will be                    
    developed which will be subject to market conditions and                  
    demand.