LeoNovus® Corporate Update

SUNNYVALE, Calif., Sept. 12, 2013 /CNW/ - LeoNovus® Inc., (TSX: LTV.v) is taking a systematic approach in the deployment of its Smart Media Platform™ to deliver just-in-time front-end services, as well as its proprietary disruptive computing technology to multiple markets.

"A common element among all these markets is the use of this technology," 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. And, we can deliver a high-level "point of presence" for easily providing just-in-time services to a consumer, hotel guest and/or enterprise customer easily through our accelerated browser.

Market Opportunity

The World's Data is Doubling Every Two Years
Situation: Business and commercial users of connected devices will create and replicate 1.8 trillion gigabytes of data -- some 1.8 zettabytes -- this year alone. By 2020 this will exceed 21 zettabytes -- 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 large data centers is viewed as 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].

The largest data-centre class is benefiting from the rise of cloud computing. The cost of continuing to build data centres to accommodate the high growth of data has significantly increased costs for power, cooling, real estate and personnel. Additionally, due to the inability to fully utilize today's multi-core processing hardware solutions, inefficiency in processing data has increased. This includes servers and systems used at such facilities, which are built to service peak operations with redundant and mostly unused back-up servers.

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 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."

Products and Services Strategies

Cloud Services at the Edges
LeoNovus is deploying its proprietary and disruptive technology to address an identified problem in using today's multi-core architectures. Leveraging unused dark (or idle) processors can be a highly effective and efficient solution in addressing the increasing pressure of servicing online data-computing requirements, with the added benefit of providing extremely efficient and scalable networks with higher disaster recovery, redundancy and business continuity at geo-dispersed endpoints.

An example is our announced partner, Trimark Associates (CA, USA), a lead customer for wide-area data management services, who uses the LeoNovus distributed data center for cloud services at the edges. They will be using it for 300 and 600 Gb files -- the equivalent of 600 hours of HD video or 11 Blu-ray discs.

"One of the issues our customers have in using data centres from large Cloud providers is security, which is handled today by putting a locked cage around a server," said Dan Willis, Chief Architect at LeoNovus. "If the data centre is hit by a storm, you will lose your data. You are also exposed to hacking. With LeoNovus, the file/compute task is shredded into small atomic elements, encrypted, and then sent to multiple endpoints. No end device has the entire file and if the device is hacked, they have only accessed one encrypted piece. Also, we build in redundancy so that we can lose up to 70% of the end devices and not impact the data."

Customers and Market Activities

Residential Deployment Update
Stratford, Ontario is providing front-end services for full Internet access. The technical team is working on linear broadcast channels to add to the already supported VoiP through Skype. This will give the city a low cost offering to include Home Management applications that can be enabled through Wi-Fi without costly hard wiring.

Additionally, Stratford is participating in the geo-dispersed distributed data centre and supports cloud services for storage across Stratford, Ottawa and Sunnyvale, CA. Compute cycles will be added shortly, which will allow them to do heavy compute tasks at the edges, such as transcoding for second screens rather than running multiple resolutions over the network. This will increase performance while lowering costs.

Hospitality and Condos
LeoNovus has made headway in this large market with multiple hotel partners showing high interest to participate in offering an interactive info-tainment HDTV that supports just-in-time services, including in-room dining, advertising, hotel concierge, and localized content through the browser for multi-national guests. Numerous applications can be added when needed in the future.

In other words, remove the large printed hotel-room binder with outdated information and turn what is viewed by the hotel industry as a cost center into a service center that generates revenues. Running a distributed data centre that leverages the devices in each room enables cost savings for internal use as well -- phones and multimedia services, data management of guest reservations and billing -- while generating revenue whether there is a guest in the room or not.

LeoNovus is working to deploy a program with an initial partner in Q4. The Company also has huge interest from high-end hotels in emerging countries such as Viet Nam. These countries have a need for cloud services but do hot have reliable power grids or networks except at the higher-end hotels. LeoNovus will pursue these opportunities and replicate the successful deployment of its current hotel partner down the road.

Additionally, LeoNovus is making headway with several condo developers that can offer services to owners as well as those that lease or timeshare, while generating recurring revenue from cloud services.

Private and Hybrid Networks for Enterprise/Health Care
LeoNovus is pursuing partners in Enterprise for private and hybrid cloud offerings. For security reasons, financial, insurance and health enterprises do not want to put any critical or sensitive data onto "public networks" and are looking for solutions that are able to handle their big data needs, such as running on an internal private network or shared cloud services. Known as a hybrid cloud, this keeps sensitive data internal to the company and leverages an external and scalable network for analytics of their data. LeoNovus, by design, has a distributed network with optimized efficiencies to handle workloads both internally and across a scalable network, with security features built in.

Hospital systems can greatly benefit from the LeoNovus dark-core technology to create and optimize an efficient internal distributed data centre that is private and secure, and suitable for handling sensitive patient information. These systems could also contribute scalable compute resources for faster turn around on critical tests, such as high-density imaging tests and analyzing genome data, as well as handling electronic storage of patient tests that are highly sensitive to privacy laws. These scalable compute resources can also handle billing, purchasing and other administration tasks, including running additional analytic programs for medical studies and cost analysis. This can streamline costs, improve care, and add efficiencies all within a secure private network.

LeoNovus is engaged in discussion with both an enterprise customer and a health care provider for care centres. The Company expects to move faster in the enterprise while the health-care opportunity will follow due to greater regulatory oversight.

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 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.

*February 2012 Facebook announced that they were getting 3,000 pictures uploaded every second or more than 250 million every day, and they store each image in 4 sizes, totaling 100 PB (100,000,000 GB) of photos and videos online.

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

SOURCE: LeoNovus Inc.

T: [phone], F: [phone], [email protected], www.leonovus.com, Gordon Campbell, Chief Executive Officer

http://www.leonovus.com