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Press release from Marketwire

LeoNovus(TM) Announces the Initial Closing of Its Private Placement

Gross Proceeds of Over CDN $1.3 Million

Thursday, July 14, 2011

LeoNovus(TM) Announces the Initial Closing of Its Private Placement18:19 EDT Thursday, July 14, 2011PALO ALTO, CA--(Marketwire - July 14, 2011) - LeoNovus Inc. ("LeoNovus" or the "Company") (TSX-V: LTV), announced today it has raised gross proceeds of CDN $1,316,890 by way of a non-brokered private placement (the "Offering") of 4,389,633 units ("the Units") at a price of CDN $0.30 per Unit. Each Unit consists of one (1) LeoNovus Common Share and one (1) Common Share purchase warrant entitling the holder to purchase one (1) LeoNovus Common Share for a period of one (1) year from the closing date of the Offering at an exercise price of CDN $0.50 per Common Share. The securities to be issued pursuant to the Offering will be subject to a four (4) month and one (1) day hold period from the date of issuance. Completion of the Offering is subject to final acceptance and approval of the TSX Venture Exchange ("TSXV").In connection with this closing, an aggregate of CDN $98,766.25 in cash fees and 329,223 broker warrants were paid to various finders, including Fin-XO Securities Inc., Hamza Thindal Capital Corporation, Union Securities Ltd., Macquarie Private Wealth Inc. and CIBC Wood Gundy. The broker warrants entitle the holder to purchase one (1) LeoNovus Common Share for a period of two (2) years from the closing date of the Offering at an exercise price of CDN $0.30 per Common Share.Proceeds of the Offering will be used for working capital including the sales and marketing of the LeoNovus Connected TV product. LeoNovus is developing a high performance browser-based Internet software platform with a managed system that will provide consumer electronic devices such as HDTVs access to all the features, content, and functionality available on the Internet without the malware, security and support issues of a PC.The securities offered in the Financing have not been and will not be registered under the U.S. Securities Act as amended, or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements. This press release shall not constitute an offer to sell, or the solicitation of an offer to buy the securities in the United States or in any jurisdiction in which such offer, sale or solicitation would be unlawful.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.About LeoNovus Inc. (</b>www.LeoNovus.com</b>)</b>LeoNovus is developing 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, providing a true consumer electronics experience to the largest monitor in the house.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.Certain information included in this press release is forward-looking and may involve risks and 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.FOR FURTHER INFORMATION PLEASE CONTACT: TSX Venture Exchange Symbol: LTVLeoNovus™ Inc.1800 Embarcadero Rd.Palo Alto, CA 94303 USAFax: (650) 856-8510 (FAX)Phone: (650) 856-8500 (US-PDT)OREmail: IR@LeoNovus.comwww.LeoNovus.com