TechTronic Industries Announces 1997 Interim Results.

HONG KONG--(BUSINESS WIRE)--Sept. 4, 1997--TechTronic Industries (TTI), the Hong Kong-based world leading manufacturer of rechargeable power tools and floor care equipment, on September 3, 1997 announced its interim results for the six months ended June 30, 1997.

1997 INTERIM RESULTS ANNOUNCEMENT

BUSINESS REVIEW

The Group's turnover for the six months ended June 30, 1997, amounts to HK$891.7 million (US$ 115.1 million), representing an increase of 14.1% over the HK$781.2 million for the corresponding period last year. The unaudited consolidated profit attributable to shareholders amounts to HK$50.08 million (US$ 6.46 million), representing an increase of 22.48% over the HL$40.89 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 October 27, 1997 to persons who are registered shareholders of the Company on October 17, 1997.

CLOSURE OF REGISTER OF MEMBERS

The register of members of the Company will be closed from October 13, 1997 to October 17, 1997, both days inclusive, during which period no transfer of shares will be effected.

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 Center, 111 Connaught Road, Central, Hong Kong, not later than 4:00 pm on October 9, 1997.

REVIEW OF OPERATIONS Rechargeable Power Tools

This division's upward momentum continues following the launch of a series of new products during the period and accounts for 53% of the Group's total turnover. Rechargeable Power Tools continue to increase their market acceptance and improve reliability, and are proving especially popular in North America and Europe. The Directors are confident that this favorable trend will continue.

Floor Care Products

This division's success continued, built on a very positive response from our customers, especially in North America and Asia. Firm orders on hand, new products launched in the second quarter of 1997, and additional new products scheduled for the third quarter of this year further enhance results for the Floor Care Products Division in the second half of 1997. Our existing floor care products continue to perform well.

PT TECHTRONIC APPLIANCES

Situated at the Batamindo Industrial Park in Indonesia, this unit commenced commercial production in January 1997. The results have been rewarding thus far and the Directors believe this operation will make a positive contribution within the first year of operation. PT Techtronic Appliances concentrates mainly on the manufacturing of floor care products.

SUBSIDIARIES AND ASSOCIATES

The Group's subsidiaries and associates continued to develop well, reflecting strong results and maintaining their contribution to the Group's overall improvement.

LIQUIDITY

As at June 30, 1997, the Group's debt to equity ratio was 37.9% (1996: 42%), expressed as a percentage of bank and other borrowings less bank balances and cash to the Group's shareholders' funds.

Interest coverage, expressed as a multiple of profit before interest and taxation to total interest expenses, was at 5 times (1996: 4.1).

PROSPECTS

Based on present order levels and prevailing circumstances the Directors are confident of further improvement and enhanced performance for the second half of the year.

Major improvements are not expected from Europe due to currency factors and general market conditions, however this has been more than compensated by penetration of Asian markets, and the Directors are optimistic about the Group's continuing success.

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, 1997.

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). -0-

         RESULTS FOR THE SIX MONTHS ENDED JUNE 30, 1997 - unaudited
                                             1997          1996
(in thousands, except per share data)   US$(a)     HK$      HK$
TURNOVER(Note 1)                      115,103  891,678  781,191
OPERATING PROFIT                        7,021   54,389   47,012
SHARES OF RESULTS OF ASSOCIATED
     COMPANIES                           (185)  (1,430)  (3,720)

PROFIT BEFORE TAXATION                  6,836   52,959   43,292
TAXATION (Note 2)                        (374)  (2,902)  (1,768)

PROFIT BEFORE MINORITY INTERESTS        6,462   50,057   41,524
MINORITY INTERESTS                          3       23     (636)

PROFIT ATTRIBUTABLE TO SHAREHOLDERS     6,465   50,080   40,888
INTERIM DIVIDEND                        2,503   19,388   17,558

RETAINED PROFIT                         3,962   30,692   23,330

EARNINGS PER SHARE (Note 3)               1.3     9.92     8.16
                                         cents   cents    cents
DIVIDEND PER SHARE                       0.49     3.80     3.50
                                         cents    cents    cents
NOTES:

1.Turnover
  TURNOVER BY PRODUCT
    Rechargeable power tools             53.0%
    Floor Care products                  26.0%
    Solar/powered & electronic products   6.0%
    Personal and health care products     4.0%
    Kitchenware products                  2.0%
    Trading and others                    9.0%

   TURNOVER BY GEOGRAPHICAL LOCATION
    North America                        70.0%
    Europe                               21.0%
    Other countries                       9.0%

2. Taxation
                                       1997   1996
   (in thousands)                       HK$   HK$
      The Group                       2,902   1,768
      Associated Company                 -      -
                                      2,902   1,768

  Hong Kong profits tax has been provided at the rate of 16.5%
  (1996: 16.5%) on estimated assessable profit for the period.

3. Earnings per share

   The calculation of earnings per share is based on profit for the
   period of year of HK$ 50,080,000 (1996:HK$40,888,000) and the
   weighted average number of 504,584,310 (1996: 500,852,666) ordinary
   shares of the Company in issue during the period.


(a) US dollar equivalents are provided for reader convenience at the June 30,
1997 exchange rate of HK$7.7468 = US $1.

CONTACT: Frank Chan

TechTronic Industries

011-852-2402-6888

or

Brian J. Rafferty

Taylor Rafferty Associates

212-889-4350