Led International Holdings Regulatory News (LED)

LED International Holdings Limited

("LED" or the "Company")

Directors' dealings and capitalisation of liabilities

The board of LED (the "Board") announces that the Company has agreed to allot 536,606 ordinary shares in the Company (the "Ordinary Shares") in settlement and/or in reduction of its liability in the outstanding loans, service fees and salaries owed to various directors, employees and other creditors (the "Settlement") as follows:

*SWBC Capital Limited is wholly owned and controlled by Stephen Chan's family

The price per Ordinary Share of HK$2.50 (approximately 19.37 pence) under the Settlement represents an 13.94 per cent. premium to the closing middle market price of 17 pence on 28 March 2014, being the last practical date before the Settlement.

By virtue of the number of shares being issued pursuant to the Settlement it is conditional, inter alia, the passing of resolutions to give the Board the authority to issue Ordinary Shares pursuant to the Settlement free of any rights of pre-emption. Accordingly a notice of Extraordinary General Meeting (the "EGM") of the Company is currently being prepared and the Board expects that the EGM will be held in mid-May 2014. Further announcements in this regard will be made at the appropriate time.

Mr. Stephen Weatherseed, Mr. Stephen Chan, SWBC Capital Limited and Mr. Hao Bo are deemed to be related parties in accordance with the AIM Rules for Companies by virtue of the fact that they are all directors of the Company and, in the case of SWBC Capital Limited, is wholly owned and controlled by Stephen Chan's family. Accordingly, the independent director of LED, Mr. Kevin Miu, having consulted with Allenby Capital Limited, considers that the terms of the issue of the Ordinary Shares are fair and reasonable insofar as the Company's shareholders are concerned.

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

**Ends**