Working capital loan

LED International Holdings Limited

("LED" or the "Company")

Working capital loan

LED is pleased to announce that the Company has entered into a working capital loan in the sum of RMB 6,000,000 (approximately £607,000) (the "Loan"). The Loan has been provided by Rubyfield Holdings Limited and Speedy Dragon Holdings Limited in equal tranches.

The Loan, which is unsecured, is interest free and is repayable on demand.

The Board of LED are currently evaluating opportunities to raise further equity or debt funding in order to assist the Company in the development of its energy management contract business model as well as for additional working capital. It is the intention of the parties that the Loan would be converted on the issue of any equity raised as part of this fundraising process. Further announcements will be made at the appropriate time.

**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