Gentoo Media Inc.

Regulatory Filings • Jan 13, 2011

Private placement completed

Reference is made to the stock exchange notice dated

12 January 2011 regarding a contemplated private

placement in Nio Security, Inc. ("Nio" or

the "Company").

The private placement as been completed and a total

of 6,000,000 shares have been allocated, at a

subscription price of NOK 2.50 per share. The total

gross proceeds from the private placement equal NOK

15,000,000. The proceeds from the Private Placement

will be used for general corporate purposes,

including service of shareholder loans.

The share capital increase was resolved by the Board

of Directors within the authorized shares of the

Company. The share capital is increased by USD

600,000 by the issue of 6,000,000 new shares.

Following the completion of the private placement

Nio's share capital is USD 4,547,804, divided into

45,478,041 shares with a nominal value of USD 0.1 per

share.

The subscribers in the private placement will

receive existing shares in the Company that are

already listed on the Oslo Stock Exchange, pursuant

to a share lending agreement entered into between ABG

Sundal Collier Norge ASA, Nio Security, Inc. and

Lars Moldestad, the Company's largest shareholder.

The shares delivered to the subscribers will thus be

tradable according to the trade date on the contract

notes to be issued for the allocated shares.

The new shares issued in connection with the private

placement will be re-delivered to Lars Moldestad

following completion of the share capital increase to

settle the share lending agreement described above.

The new shares will however be held separate from

Nio's already listed shares, and will not be listed

on Oslo Børs until a listing prospectus has been

approved by Finanstilsynet / Oslo Børs.

The Board of Directors of Nio has resolved to

complete a subsequent offering of up to 3 million

additional shares, whereby shareholders as per 12

January 2011 that were not allocated shares in the

completed private placement, will be able to apply

for shares at NOK 2.50 per share, equal to the

subscription price in the completed private

placement. The shares in Nio will therefore trade

excluding the right to participate in the subsequent

offering today, 13 January 2011.

The Company is pleased with the private placement and

in particular with the new institutions that

participated in the transaction.

The private placement was managed by ABG Sundal

Collier.

For further information, please contact:

Espen Brodin, Chairman & CEO, +47 920 44 558 or

Tore Formo, CFO, +47 916 68 678.