Capitalisation of liabilities update

LED International Holdings Limited

("LED" or the "Company")

Update in relation to capitalisation of liabilities

The board of LED (the "Board") announces an update to the capitalisation of liabilities announcement which was previously announced on 31 March 2014 (the "March Announcement").

The arrangements outlined in the March Announcement did not, in the event, take place since, as specified in the March Announcement, these were conditional on the calling of an Extraordinary General Meeting of the Company which was not subsequently called.

The Board has subsequently agreed revised arrangements in settlement and/or in reduction of its liabilities in the outstanding sums owed to various creditors and has resolved to allot a total of 532,875 ordinary shares (the "Settlement"). An aggregate amount of HK$3,461,499.00 is treated as paid to the various creditors under the Settlement.

The price per ordinary share of HK$6.496 (approximately 51.00 pence) under the Settlement represents the closing mid-market price of 51.00 pence on 26 September 2014, being the last practical date before the Settlement. This also represents an increase of approximately 160 per cent. to the original settlement price determined at the time of the March Announcement.

An application will be made for the ordinary shares to be issued pursuant to the Settlement (the "New Shares") to be admitted to trading on AIM and it is expected that dealings will commence on or about 7 October 2014. Following the issue of the New Shares, the Company's issued share capital will be 9,440,810 ordinary shares. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company.

442,118 of the New Shares are being issued to Li Li Xin Thomas, a former Director of LED. Following the issue of the New Shares, Mr Li will be interested in a total of 601,944 representing 6.37 per cent. of the then issued share capital.

Further announcements in relation to the remaining liabilities detailed in the March Announcement will be made at the appropriate time.

**Ends**

For further information:

LED International Holdings Limited

Stephen Chan - Chief Executive Officer +852 2243 3100

Allenby Capital Limited

Nick Naylor / Alex Price +44 (0) 20 3328 5656

Notes to Editors:

LED International Holdings Limited and its subsidiaries specialize in the provision of EMC contracts under which the Group installs energy saving products in its customers¡¦ premises, including lighting and reactance filtering equipment supplied by the Group, and the subsequent savings made by the customers in their electricity charges are then shared between the Group and the customers thereby enabling the Group to generate recurring revenue rather than one-off sales revenue. Historically, the Group¡¦s business has been the development, manufacture and sale of low-powered light-emitting diode (¡§LED¡¨) display screens and modules.

Under EMC contracts, the Group provides energy efficiency solutions, including LED lighting, reactance filtering energy saving and other energy efficiency solutions. Specifically, the Group overhauls its customers¡¦ existing lighting and power consumption systems (which are based on traditional lighting technology and power generation equipment) with proprietary LED lighting products, reactance filtering equipment and other solutions provided by the Group. These energy efficiency products are installed in customers¡¦ premises. The Group bears all the upfront costs associated with the supply and installation of the energy efficiency solutions and these costs are then recouped by sharing in the monthly energy savings generated by the customers¡¦ use of the energy efficiency solutions over the period of the contracts. The Group receives revenue from customers on several different payment terms including on a pre-payment, monthly or quarterly basis.

For more information, please visit: http://www.led-intl.com