Led International Holdings Regulatory News (LED)

LED International Holdings Limited

("LED" or the "Company")

Placing of new ordinary shares and conversion of working capital loan

LED is pleased to announce that following the announcement on 16 December 2013 in relation to a working capital loan in the sum of RMB6,000,000 (approximately £599,000)provided by Rubyfield Holdings Limited and Speedy Dragon Holdings Limited (collectively, the "Investors") in equal tranches (the "Loan"), the Company has completed a conditional placing of new ordinary shares with the Investors, raising RMB31 million (approximately HK$39.89 million or £3.09 million) (including fees and expenses) (the "Placing"). The RMB31 million shall be satisfied as to the first RMB25 million by way of new funds and, as to the balance, by the application of the current outstanding balance of the Loan (currently RMB6.0 million) (the "Conversion").

The Placing is conditional upon, inter alia, the: (i) consolidation of every 100 existing authorised issued and unissued ordinary shares of HK$0.10 each in the capital of the Company into 1 new ordinary share of HK$10.00 each in the capital of the Company ("New Ordinary Share") (the "Share Consolidation"); (ii) passing of resolutions to give the Directors the authority to issue shares pursuant to the Placing and Conversion free of any rights of pre-emption at the forthcoming 2013 Annual General Meeting of the Company, which is expected to be held in late of February 2014 (the "AGM"); and (iii) the Securities and Futures Commission ruling that The Codes on Takeovers and Mergers and Share Repurchases does not apply to the Company.

Pursuant to the Placing, and subject to the Share Consolidation, the Investors will subscribe for 3,875,000 New Ordinary Shares (the "Placing Shares") at aprice of HK$10.29(being approximately 79.96pence) per Placing Share (the "Placing Price"). The Conversion is taking place at the Placing Price. The net proceeds of the Placing will be used bythe Company for generalworking capital purposes and to provide the necessary capital contribution to LED's leasing finance company, Green Pearl Leasing (China) Company Limited ("Green Pearl Leasing"). Further details on the background to Green Pearl Leasing are contained in the announcements on 21 June 2013 and 18 November 2013.

The Placing Price, taking into account the effect of the Share Consolidation, represents a premium of approximately 263 per cent. to the closing middle market price of an existing ordinary share of 0.22 pence on 27 December 2013, being the latest practicable date prior to the publication of this announcement. Subject to the approval of shareholders at the AGM, it is expected that the Placing Shares will be admitted to trading on AIM the day after the conclusion of the AGM. The Placing Shares will represent 43.5 per cent. of the enlarged share capital of LED once issued.

A circular to shareholders convening the AGM and setting out further detail to the Placing is currently being prepared will be posted to shareholders by mid-February 2014. Once posted, the circular will bemade available on the Company's website, www.led-intl.com, in accordance with AIM Rule 26.

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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