Funding update

LED International Holdings Limited

("LED" or the "Company")

Issue of convertible loan notes and placing of new ordinary shares

and

Trading update

The board of LED (the "Board") wishes to provide an update to shareholders in relation to the issue of convertible loan notes and placing of new ordinary shares, further details of which are set out in LED's announcement of 31 March 2014 (the "Fundraising").

LED has yet to receive any of the funds pursuant to the Fundraising and Board is currently unable to confirm when, and indeed if, these funds will be received. The Board is currently considering all remedies available to LED in respect of the unpaid funds.

The Company continues to experience difficult trading conditions and the Company's working capital is constrained. As a result of this the Board is endeavouring to secure alternative funding in the near future which may not be forthcoming and, should it not be, the Board may be required to take action which would result in the value attributable to shareholders being severely reduced or becoming nil.

Further announcements will be made at the appropriate time.

For further information:

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

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