Shanghai Feilo Acoustics Co., Ltd. regarding the "China-France Joint Promotion of France Green Lighting Energy Saving Renovation

Stock Code: 600651 Stock Abbreviation: Feilo Acoustics No.: Lin 2015-018

Shanghai Feilo Acoustics Co., Ltd.

Announcement on the Progress of the "Agreement between China and France to Jointly Promote Green Lighting Energy Saving Renovation in France"

The Board of Directors and all directors of the Company guarantee that there are no false records, misleading statements, or major omissions in the content of this announcement, and assume individual and joint liability for the truthfulness, accuracy, and completeness thereof.

On January 29, 2015, Shanghai Feilo Acoustics Co., Ltd. (hereinafter referred to as: the Company), through its wholly-owned subsidiary Beijing Shen’an Investment Group Co., Ltd. (hereinafter referred to as: Beijing Shen’an Group), signed the “Agreement on Joint Promotion of Green Lighting Energy Saving Renovation in France by China and France” (hereinafter referred to as: the Agreement) with the French ARELIS Group and the Meuse Department of France at the Great Hall of the People in Beijing, China (see Announcement No. 2015-015 “Shanghai Feilo Acoustics Co., Ltd. Announcement on the Signing by Wholly-Owned Subsidiary Beijing Shen’an Group and Resumption of Trading” for details).

After the signing of the Agreement, both parties actively promoted cooperation between China and France in the LED lighting industry. On March 20, 2015, the Company’s wholly-owned subsidiary Beijing Shen’an Group signed a letter of intent with the Departmental Council of Meuse, France, at the Élysée Palace in France. The main contents are as follows:

Party A: Beijing Shen’an Investment Group Co., Ltd.

Party B: Departmental Council of Meuse (La Meuse), France

1. Both parties agree to jointly explore and cooperate in the outdoor and indoor LED markets in France and Europe over the next three years. The first project will be the new construction of LED + solar lighting products for the 2-kilometer road from the high-speed rail station to RNvs in Bar-le-Duc, the capital of the Meuse department (via product buyout). Furthermore, a comprehensive retrofit with LED green energy-saving products will be carried out in the above-ground and underground areas (down to a depth of 550 meters) within the 550-square-kilometer area of the Meuse department, where the nuclear waste disposal center under the French Nuclear Energy Agency is located.

2. Party B will assist Party A in promoting the LED green lighting energy-saving market, implemented in three phases: Phase 1 covers the green lighting energy-saving market in Party B's location (Meuse department); Phase 2 covers the green lighting energy-saving market within the future jurisdiction of the Lorraine Champagne-Ardenne region; Phase 3 covers the national green lighting energy-saving market in France, jointly creating an energy-saving and environmentally friendly better future.

The Company will disclose the subsequent progress of the aforementioned matters in a timely manner in accordance with the law. The Board of Directors solemnly reminds all investors: "China Securities Journal" and "Shanghai Securities News" are the designated information disclosure newspapers for the Company, and the information released by the Company shall be subject to the announcements published in the aforementioned designated information disclosure newspapers and on the website of the Shanghai Stock Exchange (www.sse.com.cn).

Hereby announced.

Shanghai Feilo Acoustics Co., Ltd.

Board of Directors

March 24, 2015