Led International Holdings Regulatory News (LED)

LED International Holdings Limited

("LED" or the "Company")

Update in relation to working capital position

The board of LED (the ¡§Board¡¨) wishes to provide an update to shareholders following its announcement on 16 May 2014.

LED has yet to receive any of the funds pursuant to (i) the conversion of working capital loan and placing of new ordinary shares; and (ii) the issue of convertible loan notes and placing of new ordinary shares, further details of which are set out in LED¡¦s announcements of 30 December 2013 and 31 March 2014 respectively. Despite numerous assurances from the investors, and notwithstanding that the Board remain hopefully that the funds will be received in the coming 3 to 4 weeks, the Board is currently unable to confirm when, and indeed if, those funds will be received. The Board is currently considering all remedies available to LED in respect of the unpaid funds.

As a consequence, LED has yet to contribute the required amount to Green Pearl Leasing (China) Company Limited registered capital which is required to be contributed in US$ (approximately £2 million) by 30 June 2014. LED will not now be in a position to make this contribution by the extended deadline of 30 June 2014 and will therefore be making an application to the Shanghai Municipal Commission of Commerce for a further extension. Further announcements will be made at the appropriate time. There can be no guarantee as to whether this extension will in fact be granted. Further details on the background to the leasing finance company are contained in LED's announcement on 21 June 2013.

The Company continues to experience significant constraints on its working capital. As a result of this, as previously announced, the Board is endeavouring to secure alternative funding in the near future which may not be forthcoming. Should this funding not be forthcoming within 6 to 8 weeks then the Board will be required to take action to protect the interests of creditors and which may result in the value attributable to shareholders being severely reduced or becoming nil.

Further announcements will be made at the appropriate time.

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

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