Abstract: A compact, battery-powered LED lighting device having manual and/or magnetically actuatable switches, a microprocessor and timer is used in a retaining system that includes a first retaining pouch for receiving the lighting device and a second retaining pouch for holding a magnet, the retainers being secured to opposing sidewalls of a container, such as a ladies handbag or a briefcase, so that when the container is opened a magnetic switch in the lighting device closes the circuit actuating the LED to illuminate the interior contents of the container for a predetermined period of time. The manual switch can be used to override the timed illumination and to turn the LED on or off at any time.