Inclusion Criteria:

- AML (except t(15;17), inv(16) or t(8;21) and variants) or high risk MDS (IPSS Int-2
or High) diagnosed according to WHO criteria (see Appendix 1)

- Age ≥ 60 years old

- Not a candidate for allogeneic stem cell transplantation within next 12 weeks

- Ability to provide written informed consent, obtained prior to participation in the
study and any related procedures being performed

- Patients must meet the following laboratory criteria:

- Serum albumin ≥ 3 g/dL

- AST/SGOT and ALT/SGPT ≤ 2.5 x upper limit of normal (ULN) ) or ≤ 5.0 x ULN if the
transaminase elevation is due to leukemic involvement

- Serum bilirubin ≤ 1.5 x ULN

- Serum creatinine ≤ 1.5 x ULN or 24-hour creatinine clearance ≥ 50 ml/min

- Serum potassium ≥ LLN

- Serum phosphorus ≥ LLN

- Serum total calcium (corrected for serum albumin) or serum ionized calcium ≥ LLN

- Serum magnesium ≥ LLN, TSH and free T4 within normal limits (WNL) (patients may be on
thyroid hormone replacement)

- Baseline MUGA or ECHO must demonstrate LVEF ≥ the lower limit of the institutional
normal.

- ECOG Performance Status of ≤ 2

Exclusion Criteria:

- Prior treatment for MDS / AML with HDAC inhibitor or hypomethylating agent (e.g.,
Decitabine, azacitadine etc.)

- Active CNS involvement with MDS/AML

- Impaired cardiac function including any one of the following:

- Screening ECG with a QTc > 450 msec confirmed by central laboratory prior to
enrollment to the study

- Patients with congenital long QT syndrome

- History of sustained ventricular tachycardia

- Any history of ventricular fibrillation or torsades de pointes

- Bradycardia defined as heart rate < 50 beats per minute. Patients with a pacemaker
and heart rate ≥ 50 beats per minute are eligible.

- Patients with a myocardial infarction or unstable angina within 6 months of study
entry

- Congestive heart failure (NY Heart Association class III or IV)

- Right bundle branch block and left anterior hemiblock (bifasicular block)

- Uncontrolled hypertension

- Concomitant use of drugs with a risk of causing torsades de pointes (See Appendix
2-1)

- Patients with unresolved diarrhea > CTCAE grade 1

- Impairment of gastrointestinal (GI) function or GI disease that may significantly
alter the absorption of oral LBH589

- Other concurrent severe and/or uncontrolled medical conditions

- Patients who have received chemotherapy or any investigational drug < 2 weeks or
hydroxyurea < 48 hours prior to starting study drug or who have not recovered from
side effects of such therapy.

- Concomitant use of any anti-cancer therapy or radiation therapy

- Male patients whose sexual partners are WOCBP not using effective birth control

- Patients with known positivity for human immunodeficiency virus (HIV) or hepatitis
C; baseline testing for HIV and hepatitis C is not required

- Patients with any significant history of non-compliance to medical regimens or with
inability to grant a reliable informed consent

- Patients who will need valproic acid for any medical condition during the study or
within 5 days prior to first LBH589 treatment

- Patients who have received targeted agents within 2 weeks or within 5 half-lives of
the agent and active metabolites (whichever is longer) and who have not recovered
from side effects of those therapies

- Patients who have undergone major surgery ≤ 4 weeks prior to starting study drug or
who have not recovered from side effects of such therapy.