AV Concept and LEDMAN Sign LOI for Cooperation

(Hong Kong, 1 February 2010) – Leading electronic components distributor AV Concept Holdings Limited (“AV Concept” or the “Group”) (stock code: 595) and Ledman Optoelectronic Co., Ltd. (“LEDMAN”) have entered in a letter of intent on 27 January 2010 to set up a joint venture company in China, which will focus on development of high brightness LED products and management of the packaging operation of related products.

According to the market research findings of Strategies Unlimited, the leading authority in high-brightness LED market, published in July 2009, between 1999 and 2008, the CAGR of sales revenue of global high brightness LED market was approximately 22.5%; while the annual sales revenue of packaged LED reached USD5.1 billion. The current applications, which include mobile phone, sign/display, and automotive lighting, are mainly manufactured in Asian countries of China, Japan and Korea before worldwide export. For LED backlight that is used in laptop computer and LCD TV as well as general lighting, these high-growth applications are mostly manufactured in China, the market is expected to record double-digit growth in the future.

LEDMAN is a specialist in LED packaging production and development. It operates its own “LEDMAN” brand with the support of a professional sales team in Mainland China. In October 2009, it was chosen as the sole domestic LED packaging brand for the super-size screens in Tiananmen Square for the National Day Celebration and provides 6 million units of key LED component for the two super-size color LED display screens, each with 5 meters height and 50 meters width. It was also awarded as “2008 China Excellent Company in LED Industry” jointly by China Electronic News, [China LED Optics Components Association] and [China LED Display Application Association] in May 2009.
Mr. So Chi On, Chief Executive Officer of AV Concept, said, “We are pleased to forge strategic partnership with LEDMAN, which will enable us to tap the enormous business opportunities in Asia Region. The Group will apply the high brightness LED chip technology of Wavesquare Inc. with LED packaging operation in China and then sell its products to the thousands of traditional lighting equipment manufacturers, and also provide optical testing and technical support to customers in Asia region. We believe this cooperation will allow us to boost the share of our high brightness LED products in the traditional lighting product market.”

Mr. Martin Lee, CEO of LEDMAN, said, “The collaboration represents an integration of strengths – our leading LED packaging technology and AV Concept’s extensive distribution network and abundant marketing experience, which will translate into huge synergies in the aspects of technological development and marketing operation for both companies.”