1998 Interim Results Announcement.

HONG KONG--(BUSINESS WIRE)--Sept. 11, 1998--

SUMMARY OF RESULTS

The directors ("Directors") of Techtronic Industries Company Limited ("the Company") (TTI), the Hong Kong-based world leading manufacturer of rechargeable powertools and floor care equipment, are pleased to announce the unaudited consolidated results of the Company, its subsidiaries and associated companies ("the Group") for the six months ended June 30, 1998 together with comparative figures for the corresponding previous period as follows: -0-

     RESULTS FOR THE SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED): -

                                1998                           1997
                                ----                           ----
                              HK$'000                         HK$'000

Turnover (Note 1)            1,005,311                         891,678
                              -------                          ------
Operating Profit62,228                          54,389
Share of Results
 of Associated
 Companies                     (2,282)                         (1,430)
                              -------                          ------
Profit before Taxation          59,946                          52,959
Taxation (Note 2)              (3,285)                         (2,902)
                              -------                          ------
Profit before Minority
  Interests                     56,661                          50,057
Minority Interests               (170)                              23
                              -------                          ------
Profit Attributable
  to Shareholders               56,491                          50,080
Interim Dividend                21,115                          19,388
                              -------                          ------

Retained Profit                 35,376                          30,692
                              -------                          ------

Earnings Per Share (Note 3)
   Basic                   10.18 cents                      9.92 cents
   Diluted                 10.10 cents                      9.86 cents

Dividend Per Share          3.80 cents                      3.80 cents
                              -------                          ------
Notes:

1.  Turnover
    For the six months ended June 30, 1998

     TURNOVER BY PRODUCT
     Rechargeable powertools - 55.1%
     Floorcare Products - 33.1%
     Solarpowered & electronic products - 6.8%
     Trading and others - 5.0%

     TURNOVER BY GEOGRAPHIC LOCATION
     North America - 83.0%
     Europe - 13.4%
     Other countries - 3.6%

2.  Taxation
                      For the six months ended June 30, 1998
                               1998                 1997
                             HK$'000              HK$'000
                             -------              -------
The Group                     3,285                2,902
The Associated Company          -                   -
                          --------------        ----------
                              3,285                2,902
                            ==========           ==========

     Hong Kong profits tax has been provided at the rate of 16% (1997:
16.5%) on estimated assessable profit for the period.

3.  Earnings Per Share

     The calculation of the basic and diluted earnings per share for
     the six months ended June 30, 1998 is based on the following
     data:
                              For the six months ended June 30, 1998
                                  1998                 1997
                                 -------              -------
Earnings

Profit attributable to
 shareholders and earnings
 for the purpose of basic
 and diluted earnings per
 share                      HK$56,491,000          HK$50,080,000
                            =================== ===================

Number of Shares

Weighted average number
 of ordinary shares
 for the purposes of
 basic earnings per
 share                        554,996,881            504,584,310

Effect of dilutive
 potential ordinary shares
- share options                 4,312,228              3,122,434
                           ------------------   -----------------
Weighted average
 number of ordinary
 shares for the
 purposes of diluted
 earnings per share           559,309,109            507,706,744
                              ===============      ==============

-0-

Business Review

The Group's turnover for the six months ended June 30, 1998 amounts to HK$1,005.3 million, representing an increase of 12.7% over the HK$891.7 million for the corresponding period last year. The unaudited consolidated profit attributable to shareholders amounts to HK$56.5 million, representing an increase of 12.8% over the HK$50.1 million for the corresponding period last year.

Interim Dividend

The Directors have resolved to pay an interim dividend of HK$3.8 cents per share. Dividend warrants will be dispatched on or about November 2, 1998 to persons who are registered shareholders of the Company on October 23, 1998.

Closure of Register of Members

The register of members of the Company will be closed from October 19, 1998 to October 23, 1998, both days inclusive, during which period no transfer of shares will be effective.

In order to qualify for the interim dividend, all transfers accompanied by the relevant share certificates must be lodged with the Company's Share Registrars, Secretaries Limited at 5/F, Wing On Centre, 111 Connaught Road, Central, Hong Kong, not later than 4:00 p.m. on October 16, 1998.

Review of Operations

Rechargeable Power Tools

This division continued to maintain the growth momentum following the introduction of new products and market expansion during the period under review. New product development, cost rationalization and re-engineering continued to be the major task for both margin and performance improvements.

Floor Care Products

The outstanding growth registered by this division is the result of our continued commitment to maintaining a leading edge with the industry. We have achieved this position by capitalizing upon our overall technology of engineering excellence, design and innovation. Our endeavors will continue to focus on these strengths.

The Year 2000 Issue

The Group has initiated a compliance program to resolve the year 2000 issue. A project team has been formed to conduct thorough assessment of the Company's internal software and hardware systems, machinery, equipment and automated production facilities. Appropriate measures will be undertaken to ensure all systems are "year 2000 compliant".

The Group expects all its systems and equipment to complete testing on or before December 31, 1998 and any upgrade or replacements be completed before June 30, 1999. The Group considers such upgrade or replacements will not have material effect on the financial position of the Group.

Prospects

Based on current order levels and prevailing circumstances, the Directors are confident that the performance will continue to be robust in the second half of the year.

Despite the Asian currency crisis and the subsequent economic downturn, the Group's strategy is oriented towards an optimistic outlook. By carefully balancing our proven operating strengths and adopting a prudent financial stance, we believe that growth will be maintained even in the current uncertain economic environment.

Purchase, Sales or Redemption of Shares

There has been no purchase, sale or redemption of shares of the Company by the Company or any of its subsidiaries during the period.

Code of Best Practice

No Director is aware of information which would reasonably indicate that the Company is not or was not in compliance with the Code of Best Practice, as set out in Appendix 14 of the Rules Governing the Listing of Security on The Stock Exchange of Hong Kong Limited at any time during the six months ended June 30, 1998.

TechTronic ordinary shares are listed on the Hong Kong Stock Exchange. Additional share information on TechTronic may be accessed on Bloomberg under the symbol 669 HK, on the Reuter Equities 2000 Service under 0669.HK. In the US its ADRs trade on the NASD OTC Bulletin Board under TTNDY (each ADR is equal to twenty ordinary shares).

    CONTACT: Frank Chan
              TechTronic Industries
              011-852-2402-6888
                  or
              Brian J. Rafferty
              Taylor Rafferty Associates
              212-889-4350