LeoNovus® Corporate Update

SUNNYVALE, Calif., April 24, 2014 /CNW/ - LeoNovus Inc., (TSX: LTV.v) a leading Internet and cloud provider with its geo-dispersed distributed cloud, provides a Corporate Update.

The Company continues its focus on developing products and services that meet the challenging needs by many markets to efficiently and cost-effectively manage data, which includes exploiting the opportunities of Big Data.

"A common element among all our markets is the effective use of the LeoNovus proprietary compute and storage technology to generate new revenues and reduce operating costs," notes Gordon Campbell, Chief Executive Officer at LeoNovus. "We've developed a breakthrough processing technology that allows for full and efficient utilization of 'dark cores' i.e. idle processors within and across hardware systems to deliver fast, secure, and cost-effective compute capabilities, software-defined networks (SDN), and storage systems, which are used in a wide variety of markets – from hospitality, to healthcare, cloud data centers, entertainment and more."

Market Opportunity
Situation: The world's volume of data continues to grow at colossal rates. Business and commercial users of connected devices created and replicated an estimated 1.8 trillion gigabytes of data -- some 1.8 zettabytes – in 2013. By 2020 this will exceed 21 zettabytes of data -- 21,000,000,000,000,000,000,000. A zettabyte is one trillion GBs. Large amounts of data such as this are often referred to as Big Data. Cloud computing via massive data centers is one of the solutions to managing this Big Data. Global spending on cloud computing is expected to double between 2012 and 2016. The global cloud-computing market is estimated to be a $207 billion industry by 2016, according to a new report from ITIF⁽¹⁾.

LeoNovus solution: Paul Master, Chief Technology Officer at LeoNovus explains, "By applying our new, highly efficient and proprietary computing technology that's defined by software, systems can access and fully utilize all the unused 'dark' or idle cores in multi-core processors. These cores exist in all computing devices, such as connected consumer devices, computers, servers and more. We can redirect this massive amount of processing power to create smart and scalable networks that are able to efficiently and cost effectively manage Big Data in a variety of markets."

Products and Services Strategy
LeoNovus is at the forefront of creating the infrastructure needed for next-generation distributed data centers (DDC) that will enable highly efficient and high-speed cloud and enterprise computing. With the LeoNovus proprietary cloud and infrastructure technology, a virtualized network – or cloud – can be created in a single geo-dispersed DDC from an unlimited number of remotely located, physical data sites comprised of high-performance compute and storage end points. For numerous markets, such as hospitality, health care, property management, entertainment and Internet services, the result is higher capacity cloud storage and high-speed compute services at lower costs than offered by traditional and highly concentrated data centers.

With its core technologies now firmly established, throughout 2014 the Company will focus on network scaling and growth, continued performance enhancement, and the further development of a highly feature-rich set of value-driven capabilities for its customers.

Additionally, LeoNovus continues to support its innovative high-performance browser-based SMART MEDIA platform with a remotely managed cloud system that provides HDTVs and other connected devices with unprecedented access to features, content, and functionality over the web without the cost, overhead and support of a PC. This approach delivers an extremely flexible just-in-time service model to multiple markets (named above).

Customers and Market Activities
Building Data Center Capacity: LeoNovus technology enables the offering of efficient geo-dispersed distributed data centers for additional revenue streams by utilizing idle compute resources from multiple connected devices. LeoNovus has created the infrastructure needed for next-generation distributed data centers that will enable highly efficient and high-speed cloud and enterprise computing via a virtualized network cloud.

Network Infrastructure Deployment (supply-side): As the first step in the roll-out of services to the Company's customers, edge devices for the cloud are deployed in value-added applications in key vertical markets. The first such market identified by the Company is hospitality (hotels). During 2013, the Company entered into a partnership with 360VOX -- a global real estate company that offers comprehensive service in the investment, development, sales, marketing, operations and management of real estate assets -- for the installation of LeoNovus edge devices in hotel properties. These devices provide value-added services for the hotel and its guests, including just-in-time services, in-room dining, advertising and brand/property promotion, localized content in the language of choice, HDTV, and Internet browsing. In essence, this turns a cost center into a profit center for the hotel, and just as importantly, provides a distributed network of storage and computing devices for LeoNovus, without the high capital and operating costs of traditional data centers.

This entry into the hospitality market provides validation of the Company's business model and value proposition on the infrastructure side, and extends its network beyond the initial base of devices already deployed in residences within the City of Stratford, Ontario. The Company has found this rollout to be slower than expected for a number of reasons that includes renovation delays from the property, access and related issues; however, there seems to be no shortage of interest from hotel properties to move forward. The Company will add additional selection criteria to its methodology for "property readiness" going forward to enable faster scaling and deployment.

Throughout 2014, the Company will focus on growing its network presence within the hospitality sector, and has also begun its reach into other targeted sectors including healthcare, condominiums and remote managed IT companies. In this way, the Company will continue to build a very large and unique distributed data center with significant differentiators in performance and cost efficiency.

Cloud Data Storage and Compute Services (demand-side): With growing storage and compute capability based on the infrastructure deployment above, the Company is positioned for the sale of its best-in-class cloud services to corporate and institutional customers. The Company's primary focus is on the more robust enterprise market, particularly large data users, as well as overflow capacity and service extensions for traditional data centers, rather than the relatively "lite" home and personal market segments.

The Company has announced four major corporate accounts that further validate the demand-side of its business model. This includes data storage for customers in the electrical grid and solar data market, and renewable energy technology market, as well as storage and compute customers in the natural language and real-time VOIP market, and the video mosaic and rendering market.

Based on the fundamentals established in 2013, the Company is now executing on a significant but focused sales campaign designed to grow its customer base in both storage and computing. The markets include the following:

• A unique geo-dispersed network that provides local advantages in major urban centers for compute and storage applications requiring faster services to mobile users.
• Services for traditional data centers by leveraging its highly elastic network capacity to manage peak demand resource requirements.
• Development of custom private clouds for corporate and institutional clients. For example, hospitals requiring optimized and efficient internal distributed data centers that are both private and secure. This includes faster turnaround on critical tests such as high density imaging tests, analyzing genome data, clinical trials, etc., as well as handling secure electronic storage of patient data that is highly sensitive to privacy.
• Growth of the Company's unique sovereignty distributed cloud capability, which enables enterprises, institutions, and governments to maintain control over the geographical location of their sensitive data. This addresses the critical requirements and concerns regarding data residency, privacy, security, and domain-specific compliance – especially when data crosses international boundaries.

Industry Environment: In 2013, the global cloud storage and compute market was characterized by robust growth, with universal expectations for an acceleration of such growth over the coming years. Significant investment has been made in traditional data center infrastructures by major and niche market players to accommodate current and forecasted hyper-growth. However, this means on-going high-cost deployment based on historical topologies that continually fails to address the key issues of centralization, redundancy, security, elasticity, service feature sets, ROI, and full value-chain cost structures.

It is in the context of this high growth environment that LeoNovus has successfully positioned itself with a unique architecture and set of services, all predicated on its focused and successful development of proprietary compute and storage technologies and early market engagement efforts over the past several years.

In 2014, the Company will drive its growth based on its unique value proposition -- the provision of best-in-class product and service offerings to targeted markets and customers that includes improved security, greater fault-tolerance, simpler configuration and improved customization, higher reliability and greater redundancy, maximum elasticity, sovereign and regional services, greater user control, faster response times for time-sensitive local applications, simplified pricing structures, lower total cost of ownership and deployment, and the ability to create new revenue streams.

LeoNovus can be found in its filings with Canadian securities regulators, which filings are available at http://www.sedar.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Certain information included in this press release is forward-looking and may involve risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors that might cause a difference include, but are not limited to, competitive developments, risks associated with LeoNovus' growth, the state of the financial markets, regulatory risks and other factors. Forward-looking statements included or incorporated by reference in this press release includes statements with respect to proposed terms of, and the intended use of proceeds of, the Offering. There can be no assurance that any statements of forward-looking information contained in this release will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral statements containing forward-looking information are based on the estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. Unless otherwise required by applicable securities laws, LeoNovus disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on any statements of forward-looking information that speak only as of the date of this release. More detailed information about potential factors that could affect LeoNovus' financial and business results is included in public documents LeoNovus files from time to time with Canadian securities regulatory authorities and which are available at www.sedar.com.

For more information see www.leonovus.com.

⁽¹⁾ - A new report from the Information Technology & Innovation Foundation (ITIF), a Washington, D.C. -

SOURCE: LeoNovus Inc.

Gordon Campbell, Chief Executive Officer, [phone], [phone], [email protected]

http://www.leonovus.com