09:57     KINGBOARD CHEM<00148> & E&E INT'L<00033> - Joint Ann. (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     Elec & Eltek                      
    International Holdings Limited                                            
    (Incorporated in the Cayman Islands with limited                          
    liability)      (Incorporated in Bermuda with Limited                     
    Liability)                                                                
    (stock code: 148)       (stock code: 33)                                  
                                                                              
    JOINT ANNOUNCEMENT                                                        
                                                                              
    COMPLETION OF THE COMPULSORY ACQUISITION                                  
                                                                              
    WITHDRAWAL OF LISTING OF THE SHARES OF                                    
    ELEC & ELTEK INTERNATIONAL HOLDINGS LIMITED                               
    ON THE STOCK EXCHANGE                                                     
                                                                              
    The Compulsory Acquisition of the Shares held by                          
    Dissentient Shareholders was completed on Saturday,                       
    12 February 2005.                                                         
                                                                              
    The Shares have been suspended from trading on the                        
    Stock Exchange with effect from 9:30 a.m. on Friday,                      
    7 January 2005 and will continue to be suspended until                    
    the voluntary withdrawal of the listing of the Shares                     
    on the Stock Exchange. Application has been made by                       
    Elec & Eltek to the Stock Exchange for the voluntary                      
    withdrawal of the listing of the Shares on the Stock                      
    Exchange with effect from 4:00 p.m. on Friday, 18                         
    March 2005.                                                               
                                                                              
    Reference is made to the announcement dated 12 October                    
    2004, the offer document dated 1 November 2004 ("Offer                    
    Document"), the announcement dated 25 November 2004,                      
    the announcement dated 9 December 2004, the                               
    announcement dated 23 December 2004 and the                               
    announcement dated 6 January 2005 issued by, among                        
    others, Kingboard Chemical Holdings Limited                               
    ("Kingboard"), Elec & Eltek International Holdings                        
    Limited ("Elec & Eltek") and the Hong Kong Offeror                        
    and the notice of compulsory acquisition dated 8                          
    January 2005 ("Compulsory Acquisition Notice")                            
    issued by Elec & Eltek and the Kingboard Group (as                        
    defined below). Unless otherwise defined, terms                           
    defined in the Offer Document shall have the same                         
    meanings when used in this announcement.                                  
                                                                              
    COMPLETION OF THE COMPULSORY ACQUISITION                                  
                                                                              
    As stated in the Compulsory Acquisition Notice, the                       
    remaining holders ("Dissentient Shareholders") of                         
    the shares of HK$0.10 each ("Shares") in the capital                      
    of Elec & Eltek who have not accepted the Hong Kong                       
    Share Offer were entitled to apply to the Supreme                         
    Court of Bermuda ("Court") within one month from the                      
    Compulsory Acquisition Notice to have the value of                        
    the Shares appraised by the Court. Based on a search                      
    of the Cause Book of the Court conducted on Friday,                       
    11 February 2005 (being the 4th day from the date of                      
    the expiration of one month from the date of the                          
    Compulsory Acquisition Notice), no application had                        
    been made to the Court by any Dissentient Shareholders.                   
    As such, the Hong Kong Offeror, Kingboard, Kingboard                      
    Investments Limited, Kingboard Laminates Limited and                      
    Hong Kong Copper Foil Limited (collectively, the                          
    "Kingboard Group") became entitled and were bound to                      
    acquire the Shares held by Dissentient Shareholders                       
    ("Compulsory Acquisition"). Elec & Eltek was advised                      
    by the