Led International Holdings Regulatory News (LED)

5 January 2011

LED International Holdings Limited

(the "Company" or "LED")

Joint Venture and loan from Director

The board of directors of LED (the "Directors") is pleased to announce that it has entered into a letter of intent ("LOI") with Guodian East China New Energy Investment Co., Ltd ("Guodian") and Shanghai Tong Sheng Opto-Electronics Technology Co., Ltd. ("Tong Sheng") to form a joint venture company in Shanghai (the "JV"). The LOI has been approved by China Guodian Corporation, Guodian's ultimate holding company. The JV will be established in order to enter into energy management contracts ("EMC") in energy saving projects in the People's Republic of China (the "PRC"). Under the EMC contracts, the JV will fit energy saving products to the customer's premises, including lighting and reactance filtering equipment supplied by LED, and subsequent savings made by the customer in its electricity bills are then shared between the JV and the customer thereby enabling the JV to generate recurring revenue rather than one-off sales revenue. The Directors believe that these EMC contracts will also be capable of generating tradable carbon credits. The initial equity capital of the JV will be RMB5.0m (approximately £512,000) and LED will own 30% of the JV with Guodian owning 40% and Tong Sheng owning the remaining 30%. The Directors expect that the JV will be established within 6 months and further announcements will be made at the appropriate time.

Guodian is a wholly-owned subsidiary of East China Company of China Guodian Corporation. China Guodian Corporation, a Global Fortune 500 corporation, is one of the five largest nationwide power generation groups approved by the State Council of the PRC in the power industry in the PRC. China Guodian Corporation has various operations in nearly 200 power enterprises covering 31 provinces in the PRC. Guodian is the strategic arm of China Guodian Corporation and has been tasked with diversifying China Guodian Corporation's group business into the new energy sector in the PRC.

The JV will use LED's lighting and reactance filtering energy saving solutions under the EMC business model for enterprises located in Shanghai, Jiangsu Province and Shandong Province over the next three years. Following this, the Directors intend that the JV will pursue opportunities in other Provinces in the PRC. The first pre-test of reactance filtering energy saving solution project will be a power plant owned and operated by East China Company of China Guodian Corporation in the Jiangsu Province. Once this has been completed successfully, the Directors expect that additional power plants owned by China Guodian Corporation in the PRC will follow. Guodian and Tong Sheng are currently negotiating a number of different indoor and outdoor lighting EMCs and further announcements will be made at the appropriate time. Tong Sheng has arranged the necessary initial bank finance for the JV in order to finance the EMC business model. Whilst they view the JV as an important step for LED, the Directors do not expect that the JV will provide a significant revenue contribution to LED until the first half of 2013.

In order to finance LED's contribution in setting up the JV, the Company has entered into an unsecured loan arrangement with Mr. Thomas Li, Chairman of LED, for HK$3.0m (approximately RMB2.44m or £250,000) (the "Loan"). The Loan will attract interest of 4 per cent. above 3 month LIBOR for HK$s and is repayable by LED within twelve months of the date of drawdown.

As Mr. Li is a director of the Company, the Loan constitutes a related party transaction pursuant to Rule 13 of the AIM Rules for Companies. The Company's directors (other than Mr. Li), having consulted with the Company's nominated adviser, Allenby Capital Limited, consider that the terms of the Transaction are fair and reasonable insofar as the Company's shareholders are concerned.

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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: www.led-intl.com.