RNS Number:9243M
Technoplast Industries Ld
30 June 2003

                                                     R. YOHAY & CO., LAW OFFICES

                                   TOP TOWER,  50, DIZENGOFF ST., TEL AVIV 64332 
             
              FAX:  03-525 39 83  e-mail: ryohay@ryylaw.com   TEL:  03-525 39 72


                                                              ROBERT YOHAY
                                                              GILL RIMON
                                                              EYNAT BRETSHNAIDER

Tel Aviv, 30 June 2003



The London Stock Exchange
Company Announcements Section
Fax: 44-207-5886057


Dear Sir,


         RE:             Technoplast Industries Ltd - Immediate report



Technoplast Industries Ltd. (hereinafter: "the Company") has announced to the
Tel Aviv Stock Exchange and to the Israeli Securities Authority, as an immediate
report, that during the afternoon hours of 29 June 2003, the Company signed a
memorandum of understanding with Kidron management and Holdings (1961) Ltd.
(hereinafter: "Kidron") pursuant to which Kidron shall transfer to the Company,
by way of merger, assets, rights, cash and liabilities of Kidron Plastics Ltd.
(a company active in the field of import and marketing of raw materials for the
plastic industry) in consideration for an allotment of the Company's shares
which shall grant Kidron control of the Company.



The actual rate of Kidron's holdings in the Company shall be determined
according to evaluations that shall determine the merger ratio between the two
companies. In any case, Kidron's holdings in the Company shall not surpass 75%
of the Company's issued and paid up share capital on a fully diluted basis.



The completion of the above transaction is subject to a few conditions precedent
and is subject to receipt of duly required approvals, including the approval of
the Company's general meeting.



A detailed agreement shall be signed within 30 days.



Kidron operates in Europe and in Israel by means of subsidiaries. Such
subsidiaries operate in a variety of fields related to production and supply of
raw materials and other industrial resources. Kidron is controlled by Mr.
Michael Susz.



                                                               Yours Sincerely,

                                                               Gill Rimon, Adv.
                                                    R. Yohay & Co., Law Offices




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