De'Longhi Pinguino

Offer Now Mandatory

De'Longhi Pinguino S.A.
21 February 2001

  Not for release, publication or distribution in or into the United States,
                         Canada, Australia or Japan.

                            Kenwood Appliances plc

   Recommended cash offer by Deutsche Bank AG London on behalf of De'Longhi
   Pinguino SA (the 'Offeror'), a wholly-owned subsidiary of De'Longhi SpA
           ('De'Longhi'), for Kenwood Appliances plc ('Kenwood') at

                             100 pence per share


The Offeror announces that, following market purchases of 12,508,421 Kenwood
Shares made today, the Offer by Deutsche Bank on behalf of the Offeror for
Kenwood announced on 16 February 2001 now constitutes a mandatory offer under
the provisions of Rule 9 of The City Code on Takeovers and Mergers.

As a result, the only condition to the Offer is now that the Offeror must
receive valid acceptances in respect of Kenwood Shares which, together with
Kenwood Shares acquired or agreed to be acquired before or during the Offer,
will result in the Offeror (and any person acting in concert with it) holding
Kenwood Shares carrying more than 50.0 per cent. of voting rights exercisable
at general meetings of Kenwood.

Of the market purchases made today, 7,925,000 Kenwood Shares representing 17.3
per cent. of the issued share capital of Kenwood have been acquired from
certain Kenwood Shareholders who had undertaken to accept the Offer and who
are to be released from their undertaking. As a result, the Offeror now holds
undertakings to accept the Offer from certain Kenwood Shareholders in respect
of, in aggregate, 482,015 Kenwood Shares, representing approximately 1.1 per
cent. of Kenwood's existing issued share capital. These shareholdings remain
binding even in the event of a competing offer for Kenwood unless and until
the offer lapses, is withdrawn or is not made.

The Offeror now prospectively holds, or has control over, approximately 53.4
per cent. of the issued share capital of Kenwood.

The Offer will lapse if the proposed acquisition of Kenwood is referred to the
Competition Commission before the first closing date of the Offer or, if
later, the date on which the Offer is declared or becomes unconditional as to

The Offer Document will be despatched to Kenwood shareholders shortly. Terms
defined in the announcement dated 16 February 2001 have the same meanings when
used herein unless the context requires otherwise.


                                                 Tel: 00 39 0422 4131
Stefano Beraldo, Chief Executive

Deutsche Bank

Alastair Mathieson                               Tel: 020 7545 8000

This Announcement does not constitute an offer or an invitation to acquire any

Deutsche Bank AG ('Deutsche Bank') which is regulated for the conduct of
investment business in the UK by The Securities and Futures Authority, is
acting exclusively for De'Longhi and the Offeror and no-one else in connection
with the Offer and will not be responsible to anyone other than De'Longhi and
the Offeror for providing the protections afforded to customers of Deutsche
Bank or for providing advice in relation to the Offer, the contents of this
Announcement or any other matters referred to herein.

The Offer will not be made, directly or indirectly, in or into, or by use of
the mails of, or by any means or instrumentality (including without limitation
facsimile transmission, telex or telephone) of interstate or foreign commerce
of, or any facility of a national securities exchange of, the United States
nor will it be made in or into Canada, Australia or Japan. Accordingly, copies
of this Announcement, the Offer Document and the Form of Acceptance are not
being, and must not be, mailed or otherwise distributed or sent in, into or
from the United States, Canada, Australia or Japan.