LeoNovus and Leadtek® sign Letter of Intent

Leadtek to ramp multi-service products supporting LeoNovus' existing and next generation technologies

SUNNYVALE, Calif., Oct. 9, 2012 /CNW/ - LeoNovus Inc. ("LeoNovus" or the "Company") (TSX-V: LTV) is pleased to announce today that the Company has finalized a Letter of Intent with Leadtek Research Inc. to deliver multi-service hardware gateway systems supporting LeoNovus technologies. The first step is to target approximately 300,000 identified subscribers in Taiwan.

LeoNovus is a leading developer of a high performance, Internet software platform with a managed cloud system, the WISE Network, providing end users access to all the features, content, and functionality available on the Internet to their HDTV without the malware and overhead of a PC. The WISE Network also enables new services, applications, and advertising tied to the preferences of the user for recurring revenue over the life cycle of the device.

Leadtek is a global company with its headquarters in Taipei, Taiwan. The Company is a technology leader in developing innovative hardware products for graphics, multimedia audio and video, communications technologies, including supporting cloud-based technologies.

Leadtek will be integrating the LeoNovus Services (LTV) Software Platform onto Leadtek gateway hardware systems for the delivery of broadband services into the home supporting multiple applications including Internet browsing and entertainment, Home Management and Tele-care. The WISE Network will provide the cloud management, services and metrics for supporting business models and recurring revenue streams.

Additionally, LeoNovus and Leadtek will integrate LeoNovus' next generation "Dark Core" technologies into this product, which delivers a break-through capability to leverage idle processors in today's multi-core connected systems. Adding the dark core technology to this offering provides on-demand computing resources. These idle processors can be aggregated into a virtual distributed data center delivering performance-based resources for greater functionality to the network while reducing cost. Additionally, it delivers the ability to offer computing cycles to the cloud for an additional revenue stream. This is part of LeoNovus' SMART LIVING initiative involving a virtual distributed data center created by the aggregation of "dark core enabled" connected gateway systems and the cloud-based WISE Network.

"We are ready to step forward to deliver an optimized and flexible platform to our customers," said Leadtek President and CEO Kun-Shan Lu. "We understand the importance of value-add services supported by cloud networking – including the market advantage that the dark cores can bring to us in optimizing our Networks, reducing costs while delivering new revenue streams to an ever increasing market demand for cloud computing."

The LOI will be expanded into an Agreement to detail the ramp of these products initially into Taiwan targeting its 300,000 subscribers. The program is expected to begin by the end of 2012 and ramp throughout 2013.

"I am delighted to work with Leadtek," said Gordon Campbell, CEO of LeoNovus. "The LeoNovus flexible Internet platform and dark core technologies coupled with Leadtek's quality hardware is a great partnership in building a profitable cloud-based marketplace for SMART Living."

LeoNovus and Leadtek will be providing more details on the next generation dark core technologies in the months to come. LeoNovus is already working with Stratford, Ontario in commercializing this technology of which Leadtek is expected to provide hardware systems in support of that program.

About Leadtek Research Inc.? (www.leadtek.com)
Established since 1986, Leadtek Research Inc. provides customers with best quality services upon the corporate motto 'Innovation and Quality' by extending the corporate spirit 'Integrity and Honesty'. As the world's oldest professional graphics card developer and maker, Leadtek is dedicated to total solutions for multimedia and communication. Today, Leadtek has developed into a multifaceted solution provider with main product ranges covering the zero client and thin client for desktop virtualization, graphic cards for both computer games and workstations, multimedia phones, GPS, digital monitoring systems, cloud computing workstations, and others, aiming to serve the global market with multidimensional, innovative technologies and excellent products.

Taiwan Stock Exchange Code: 2465

About LeoNovus Inc. (www.LeoNovus.com)
LeoNovus is the leading developer of a high performance browser-based Internet platform with a managed system approach that will provide HDTVs and other consumer electronic devices with access to all the features, content, and functionality available on the Web without the malware, security and support issues of a PC. LeoNovus seeks to change the way high-value Internet content is organized, monetized, and delivered on HDTVs. LeoNovus is launching its next generation break-through dark core technology that leverages unused idle processors for purposes of building SMART Networks to reduce costs, increase performance and deliver additional revenue streams.

LeoNovus shares have traded on the TSX Venture Exchange since June 10, 2009. Further information about LeoNovus can be found in its filings with Canadian securities regulators, which filings are available at 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's growth, the state of the financial markets, regulatory risks and other factors. 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.

All trademarks and brands mentioned in this release are the property of their respective owners.

SOURCE: LeoNovus Inc.

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

http://www.leonovus.com

http://www.leadtek.com