KEN Kendrick Resources Plc

RNS No 0896p
KENWOOD APPLIANCES PLC
3rd February 1999

     Kenwood Appliances sells plastic moulding operation

As  part of the accelerated restructuring programme outlined
at  the  interim results in December 1998, Kenwood announces
today  that it has entered into an agreement to sell its  UK
plastic  moulding  capacity to Hong  Kong  registered  Allan
International    Holdings   Limited   ('Allan'),    for    a
consideration  of #2.2 million in cash.  This is  equivalent
to  Kenwood's book value of these assets.  The cash will  be
paid over a period of two years as the machinery is supplied
and  commissioned in the Allan factory in China and will  be
used to reduce borrowings in the UK.

In  addition,  Kenwood has entered into a four  year  supply
agreement for Allan to supply certain electrical products to
the  group.  Allan will pay a consideration of HK$10 million
(#0.8m)  for technical assistance.  This will be settled  by
two  equal payments on signing the supply agreement  and  on
completion of the transfer of the equipment.

The  group  today announced 97 redundancies at its factories
in Havant, Hampshire and Freshwater on the Isle of Wight.

Commenting on the sale, Colin Gordon, Chief Executive  said:
"This  transaction is another important step in transforming
Kenwood from a vertically integrated manufacturing operation
to an agile brand led company."

                              
For further information, please contact:

Colin Gordon                       Tel: 01705 476 000
Chief Executive, Kenwood Appliances plc

Simon Rigby, Alex Brown            Tel: 0171 282 8000
Citigate Dewe Rogerson

END





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