Techtronic Industries 1H05 Profit Increased by 52.7% to HK$456 Million

Strong Results From Existing Business and Acquisition

HONG KONG, Aug. 18 /Xinhua-PRNewswire-FirstCall/ -- Techtronic Industries Co. Ltd. (''TTI'' / The Group) (stock code: 669; ADR symbol: TTNDY) today reported profit attributable to shareholders of the Company of HK$456 million for the six months ended 30th June 2005, representing 52.7% growth over the same period last year. Basic earnings per share increased 49.6% to HK33.65 cents (2004: HK22.49 cents). The Directors have recommended an interim dividend of HK6.00 cents.

Mr. Horst Julius Pudwill, Chairman and CEO of TTI said, ''The record results we delivered in the first half of 2005 were contributed not only by our recent acquisition but also the robust growth of our existing business. The strong double-digit growth in revenue and profits across all lines of business and in geographical markets showed, once again, the Group's ability to identify and execute market opportunities for the benefit of shareholders. We continued to improve our gross margin as a result of a more favourable product portfolio and continuous cost improvement programs, offsetting higher raw material prices.''

Mr. Pudwill adds, ''TTI is well positioned for excellent growth going into the second half of 2005. The on-going integration of the Milwaukee(R), AEG(R) and DreBo(R) is positioning the Group to leverage marketing and operational synergies, generating opportunities for significant growth and efficiency gains. Strong sales momentum of the power tool business will continue as many of the successful product introductions such as the V28(TM) from Milwaukee(R), the Ryobi(R) One+ System(TM) and RIDGID(R) pneumatic fastening tools will hit their full stride in the second half of the year. AEG(R) will benefit from new products and OEM customer programs that we launch in the second half. And introduction of the Vax(R) brand with a new generation of vacuum cleaners in the US market will present a major expansion opportunity for our floor care business. The Group's sound strategies are delivering significantly higher performance in all areas of the business.''

Review by operation Power Equipment Products

The Power Equipment Products division delivered robust turnover growth of 67.4% over the same period of 2004 to HK$7,889 million, accounting for 77.2% of Group turnover. The strong growth was attributed to the double-digit growth of existing business and first six months' contribution from the recent acquisition.

Our leading position in North America is further strengthened with key innovative product launches for both professional and consumer markets. Targeting the professional / industrial users, sales of the V28(TM) cordless power tool line with lithium-ion technology by Milwaukee(R) has exceeded expectations. Since its initial launch in April this year, we have seen very strong demand and we expect tremendous growth potential from this technology platform. RIDGID(R) also continued to build strength and capture market share in the professional segment of the building industry with its new line of pneumatic fastening tools, exclusively featuring high performance FastenEdge Technology(TM). Our consumer line, under the Ryobi(R) brand, continued its success in the Ryobi(R) One+ System(TM), a revolutionary marketing concept for 18V cordless power tools well received by the end users.

The outdoor power equipment division also delivered excellent growth in the first half of the year. We continued to capitalize on the already strong position of Ryobi(R) and introduced a number of new products. Homelite(R) continues to be a brand of choice adding to the growth of this division. We also enjoyed strong growth in Europe for the outdoor products thanks to continuous introduction of new products.

Floor Care Appliances

Turnover in the Floor Care Appliances division increased 15.3% over the same period of 2004, to HK$1,980 million, accounting for 19.4% of Group turnover.

A strengthened North American management team is launching new marketing campaigns that highlight product innovations and cleaning solutions in response to customer needs. The Dirt Devil(R) brand remained a consumer favorite exhibiting strong growth across all markets. A wide range of new products has been introduced, including, the new Dynamite(R) line of vacuums and trendy Broom Vac. We continued to build on our strong relationship with the key retailers, providing them with well-received products and efficient sales support.

In the UK, Vax(R) is the fastest growing floor care brand and has captured market gains with its robust new product introductions such as the innovative upright carpet washers and easy-to-use bagless vacuums.

Our OEM business delivered positive results as new products launched in late 2004 had exceptional end-user acceptance. The strategic investment continues in product development capabilities to support our OEM customer demand for new products.

Laser and Electronic Products

Turnover for the laser and electronic products division climbed 18.0% over the same period of 2004 to HK$348 million, accounting for 3.4% of Group turnover. The double-digit growth in sales and profits were the result of major new product introductions in very competitive markets. Key productivity measures were taken to contain costs. The product innovation and enhanced productivity helped strengthen the strategic alliance with our key ODM partners as we provided them continued product advantage at competitive costs.

The text of the announcement and results presentation are available at http://www.ttigroup.com/ .

About TTI

Founded in 1985, TTI is a world-class supplier of superior home improvement and construction tools with a powerful portfolio of trusted brands and a strong commitment to innovation and quality. The portfolio that TTI offers includes a full line of power equipment products, floor care appliances, laser and electronic products. Our brands include Milwaukee(R), AEG(R) and Ryobi(R) power tools and accessories, Ryobi(R) and Homelite(R) outdoor power equipment and Royal(R), Dirt Devil(R), Regina(R) and Vax(R) floor care appliances.

TTI is a constituent stock of the Hang Seng HK MidCap Index under the Hang Seng Composite Index, the MSCI Hong Kong Index, the FTSE All-World Hong Kong Index, the FTSE/Hang Seng Asian Cyclical Index and the Dow Jones Hong Kong Titans 30. For more information, please visit http://www.ttigroup.com/ .

About RIDGID(R)

RIDGID(R) is a registered trademark of Ridgid, Inc., part of Emerson Professional Tools, a business of St. Louis-based Emerson . The orange color used on this product and the combination of orange and grey are trademarks for RIDGID(R) brand power tools.

Contact: Yammie Tang of Techtronic Industries Tel: +852-2402-6888 Email: ir@tti.com.hk http://www.ttigroup.com/