Led International Holdings Regulatory News (LED)

02 July 2010

LED International Holdings Limited

("the Company")

Joint Venture Agreement

The board of directors of LED ("the Board") is pleased to announce that it has entered into a joint venture agreement with Mr. So Hing Chung, Mr. Ip Po Kwong, Mr. Hui Shun and Mr. Yung Chiu Hong (hereinafter collectively referred to as "the Partners") to develop and expand its existing business in developing LED lighting solutions ("the Joint Venture").

The Partners have significant knowledge, experience and industry contacts in the LED lighting business and the Company wishes to leverage this collective expertise tocapitalise on the many opportunities available both internationally and within the People's Republic of China ("the PRC"). 

The Company's wholly-owned subsidiary, LED International Energy Conservation Holdings Limited is being used as the corporate vehicle for the Joint Venture ("the Corporate Vehicle"). The Company has a majority stake (60 per cent.) in the Joint Venture and, together with the Partners has invested an initial sum of HK$1 million as seed capital for upcoming projects.

The Joint Venture has procured a source of supplies from CREE, Inc., a leading supplier of LED products and components, for recurring purchases of LED components at a competitive cost. Furthermore, the Joint Venture has also procured the registration of its own brand name "Green Pearl" to enhance market penetration into the PRC. The Company is confident that its strict product quality control and competitive pricing will allow it to launch a range of exclusive products in the PRC and overseas markets.

In order to effectively implement its expansion strategy the Joint Venture has put in place a secured banking facility with DBS Bank (Hong Kong) Limited, a regional bank in Hong Kong. Accordingly, on 22 June 2010, the Group was granted a facility of HK$10 million, inclusive of a trade finance option.

Commenting on the Joint Venture, Thomas Li, the Chairman of the Company said:

"We are delighted to be able to work alongside such high quality partners in the LED lighting business and we will significantly contribute to the Joint Venture by making available our manufacturing expertise and international customer base. It is my belief that the further expansion of the Company's LED lighting business both internationally and within the PRC will provide attractive stakeholder returns in the current financial year and beyond."

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Notes to Editors:

LED International Holdings Limited and its subsidiaries specialise in the development, manufacture and sale of low powered / low maintenance LED screens and other LED products such as outdoor signs, lamps, lighting and building illumination. The screens are manufactured in a 'building block' format to a specific design, which allows screens to be assembled to suit a customer's size and definition specifications.

This design also ensures that the screens are relatively easy to transport and assemble. Based in Hong Kong, the Company's primary market has been the People's Republic of China ('PRC'), but it has also supplied end products to Macau, Japan and the USA. Part of the Company's strategy in 2007 was to widen its customer base to markets outside PRC.

The Company was originally listed on AIM, a market operated by the London Stock Exchange, on 23 October 2006. For more information, please visit: http://www.led-intl.com