KIH Kidron Ind.

Kidron Industrial Holdings Ld
26 March 2007

                                                     R. YOHAY & CO., LAW OFFICES



                                  TOP  TOWER,  50, DIZENGOFF ST., TEL AVIV 64332  

             FAX: 525-03 39 83  TEL:  e-mail: ryohay@ryylaw.com    525-03 39 72 

ROBERT YOHAY                                                          GILL RIMON


Tel Aviv, 26 March 2007


            Re: Kidron Industrial Holdings Ltd. Company Announcement

Kidron Industrial Holdings Ltd (hereinafter: "the Company") has announced to the
Tel Aviv Stock Exchange and to the Israeli Securities Authority as an immediate
report, that the Mr. Alon Fradkin, CPA., the Company's special administrator and
trustee of the Company in stoppage of proceedings (the Israeli equivalent of a
trustee under chapter 11  of the US law) (hereinafter: "the Trustee") has filed
his second report to the district court in Nazerat Ilit.

Any person wishing to read or look into such report shall be entitled to do so
in the Trustees' attorney's office - Adv. Avihay Vardy & Co., Law offices
situated at 2 Ben Gurion Road, Ramat Gan, during regular business hours Sunday
through Thursday.



                                Yours Sincerely,

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




                      This information is provided by RNS
            The company news service from the London Stock Exchange
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