Led International Holdings Regulatory News (LED)

2 January 2015

LED International Holdings Limited

("LED" or the "Company")

New leasing finance contract secured

The board of directors of the Company (the "Board") is pleased to announce that the Company's wholly-owned direct subsidiary, Green Pearl Leasing (China) Co. Ltd. ("Green Pearl"), has entered into a leasing finance contract (the "Contract") with Jiangsu Siyuan Port Company Limited ("Siyuan"), based in Jiangsu, China. The projected total interest receivable by Green Pearl under the Contract is approximately RMB1,320,000 (approximately £137,000) over a two-year period.

Pursuant to the Contract, Green Pearl purchased various port loading and reloading equipment (the "Equipment") from Siyuan at a consideration of RMB12,000,000 (approximately £1,246,000) and the Equipment shall be leased back to Siyuan for a term of two years from 25 December 2014 to 25 December 2016 (the "Lease Period").

Summary of the Contract

Ÿ Under the Contract, Green Pearl shall purchase the Equipment from Siyuan at a consideration of RMB12,000,000 (approximately £1,246,000) and the Equipment shall be leased back to Siyuan for the Lease Period.

Ÿ The lease rent to be paid by Siyuan to Green Pearl comprises of two components: the principal lease cost of RMB12,000,000 (approximately £1,246,000) (the "Principal Lease Cost") and the aggregate lease interest of RMB1,320,000 (approximately £137,000) calculated at a rate of 11 per cent. per annum for the Lease Period (the "Interest").

Ÿ Siyuan shall pay the first half of the Principal Lease Cost of RMB6,000,000 (approximately £623,000) to Green Pearl upon the commencement of the Contract. Pursuant to the Contract, Siyuan duly paid RMB3,000,000 (approximately £311,000) of this amount to Green Pearl on 30 December 2014 and the remaining RMB3,000,000 (approximately £311,000) shall be paid by Siyuan on 5 January 2015.

Ÿ The second half of the Principal Lease Cost of RMB6,000,000 (approximately £623,000) shall be paid by Siyuan to Green Pearl in twenty four installments of RMB250,000 (approximately £26,000) each and are payable on the 25th day of every calendar month during the Lease Period.

Ÿ The Interest payable by Siyuan to Green Pearl shall be paid by Siyuan in twenty four installments of RMB55,000 (approximately £5,700) each and are payable on the 25th day of every calendar month during the Lease Period.

Ÿ During the Lease Period, the ownership of the Equipment shall vest in Green Pearl. Upon expiry of the Lease Period and subject to full satisfaction of all the obligations under the Contract, Siyuan will have the option and the right to purchase the Equipment at a nominal purchase price of RMB1 to obtain the title of and all rights in the Equipment from Green Pearl.

Ÿ Pursuant to the Contract, Mr. Xu Xiu Zhi, the major ultimate shareholder of Siyuan, has provided an unlimited personal guarantee to secure the obligations of Siyuan under the Contract.

Ÿ Siyuan shall make all the insurance payments for the integrated property insurance of the Equipment in favour of Green Pearl.

LED's Chief Executive Officer, Stephen Chan, said: "I am delighted to announce this important lease finance contract with Siyuan. This is the first lease finance contract entered into by Green Pearl since it obtained its leasing finance license and represents a significant milestone for the Company. It is the culmination of all our hard work over the past 2 years and we look forward to entering into more leasing finance contracts in the coming year."

**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