Resolution of Litigation and Italian Property Sale

Kenwood Appliances PLC
6 March 2000

 Kenwood Appliances plc announces the resolution of its
                         Italian
 litigation case and a successful Italian property sale


Kenwood   Appliances  plc  announced   today   that   the
outstanding dispute on the purchase price of its  Italian
subsidiary  Ariete has been resolved by the  arbitrators.
This  dispute  arose from the acquisition  of  Ariete  in
November  1994.  This decision will result in  a  further
payment of 14.8bn lire (£4.6M) to the vendors.

Kenwood  made a provision of £3.0M against the  potential
settlement  in  its  report and accounts  in  1997.   The
balance will be charged against reserves as an adjustment
to goodwill on the acquisition previously written off and
will not have any impact on the profits of Kenwood in the
current year.

In   a   separate  transaction,  Kenwood   announced   an
agreement,  subject  to contract, to  sell  the  freehold
property  of  its  Italian  subsidiary  -  Ariete  -   in
Calenzano  Florence  for the book  value  of  6.4bn  lire
(£2.0M).  Ariete is planning to vacate the property  next
month and move into new headquarters.  The proceeds  will
be set against borrowings.


For further information, please contact:

Colin Gordon                       Tel:  [phone]
Chief Executive, Kenwood Appliances plc

Simon Rigby, Alex Brown            Tel:  [phone]
Citigate Dewe Rogerson