Grant of leasing finance licence

LED International Holdings Limited

("LED" or the "Company")

Grant of approval for leasing company

The board of directors of the Company (the "Board") is pleased to announce that the Shanghai Municipal Commission of Commerce ("SMCC") has granted the Company a highly sought after leasing finance licence to enable the Company to provide lease financing to customers. The Company will form a new wholly owned direct subsidiary, Green Pearl Leasing (China) Company Limited ("GP Leasing Co"), in order to carry on this business.

Stephen Weatherseed, Chairman, commented: "We are pleased to make this extremely important announcement as we continue with the transform of LED into an energy management service provider in the PRC. It is extremely difficult to obtaining a lease financing licence in China and a huge amount of credit should be given to all of those involved. We consider that the ability to offer our customers lease financing will enable us to develop our energy management business more quickly and help us secure new contracts. At the same time, we will also be able to offer lease financing to customers throughout the PRC whether or not they are a customer of LED which has the potential to provide us with additional revenues."

Background

The Company's newly established energy management contract ("EMC") business model is substantially dependent on debt capital finance, predominantly either through bank finance for the Company and/or its subsidiaries (the "Group") or through equipment leasing finance for its customers. Therefore, in order to launch its EMC business model more widely, the Company applied for a leasing finance service license, which is a regulated business carried out by non-financial institutions in the People's Republic of China (the "PRC"), in the last quarter of 2012.

In accordance with the SMCC's approval document, the Company is obliged to contribute 20 per cent. of GP Leasing Co's registered capital of RMB100 million, to be contributed in US$ (approximately £10 million),within 3 months from the date of approval by the SMCC. The remaining 80 per cent. of the registered capital must be contributed within 2 years from the date of approval by the SMCC. GP Leasing Co must be formed within 30 days from the date of approval by the SMCC.

The board of directors of GP Leasing Co will be Kent Chu, LED'sFinancial Controller, (Executive Director and General Manager), Danny Ho (Non-Executive Director) and Stephen Chan, LED's CEO (Non-Executive Chairman).

The Board considers that GP Leasing Co will assist the Group in the development of its EMC business model for the foreseeable future. Further announcements in relation to formation and capital contribution to GP Leasing Co will be made at the appropriate time.

Background to GP Leasing Co's board

Mr. Chu has worked in corporate finance for more than 20 years. He was the Head of Structured Finance and Corporate Finance at Bank of China (Hong Kong) Limited and a Vice President at Sumitomo Mitsui Banking Corporation (Hong Kong Branch). Throughout his career, Mr. Chu has been heavily involved in the energy sector. Mr. Chu received his Master of Science in Investment Management (Risk Management) from The Hong Kong University of Science and Technology and his BBA degree from Hong Kong Baptist University.

Mr. Ho is the Chairman of Regal Energy Limited, a wholly owned subsidiary of IRIS Corporation Berhad, a public IT and new energy company in Malaysia. Mr. Ho also served as Chief Operating Officer of Jintai Mining Group Inc., listed on NYSE Amex. Before moving to the commercial sector, Mr. Ho was a senior foreign trade economist for the Chinese Government between 1972 and 1983, focusing mainly in the oil and gas industry. Mr. Ho graduated from the Foreign Trade Department of the Foreign Languages & Foreign Trade, University of Guangzhou.

**Ends**

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