Legal proceedings

23 May 2011

LED International Holdings Limited

("LED" or the "Company")

Legal Proceedings

The Board of Directors of LED (the "Board") announces that LED International Green Energy Corporation Limited ("LED Green") has been served with a writ in the District Court of Hong Kong by WPI International (Hong Kong) Limited (the "WPI Proceedings").

LED Green is the wholly-owned subsidiary of LED International Energy Conservation Holdings Limited ("LEDEC"). As announced on 2 July 2010, LEDEC is the corporate vehicle for the joint venture entered into by the Company with various joint venture partners and in which the Company holds a majority stake ("the Joint Venture"). Since its inception, the Joint Venture has been actively involved in expanding the Company's existing business in developing LED lighting solutions.

In the WPI Proceedings, WPI International (Hong Kong) Limited ("WPI") alleges that LED Green had contracted to purchase 3,000,000 pieces of electronic components with delivery to be made by 3 separate shipments (the "Contract"). WPI further alleges that LED Green had failed to settle the invoices in relation to the 1st shipment and has wrongfully refused delivery of the 2nd and 3rd shipments. WPI is now claiming for a sum of US$110,260.00 and damages in relation to the alleged breach of the Contract.

The Company and its partners in the Joint Venture believe that the WPI Proceedings are without merit and intends to mount a vigorous defence. The WPI Proceedings is still in its early stages and discovery has not yet begun. As such, the Company is unable to determine the likely outcome at this time. The Company will provide updates on the above matters as and when there are further material developments.

The Company believes the WPI Proceedings to be ordinary routine litigation incidental to the business. The Board, at this time, does not consider the WPI Proceedings will have a material adverse effect on the Company's financial position, operations and/or cash flows.

**Ends**

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Notes to Editors:

LED International Holdings Limited and its subsidiaries specialise in the development, manufacture and sale of low powered led screens, outdoor signs, lamps, lighting and building illumination; and high powered / medium powered led energy efficient indoor and outdoor lighting products.

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