NEONODE INC : Neonode Announces New License Agreement for its zForce Touch Screen Technology

Neonode, Inc. (NEON.OB), the Optical Touchscreen Technology Company, today announced that it entered into a multi-year technology license agreement with a global consumer electronics company to incorporate Neonode's touch screen solution into its family of products. Neonode's patented touch screen technology, zForce, supports high resolution pen writing in combination with finger navigation including gestures, multi-touch, sweeps and much more. zForce uses no overlay (like resistive and capacitive touch screens) on top of the display thus creating a 100% clear window, free from reflection and parallax effects and produces a true clear viewing experience.

?We're very pleased that another global consumer electronics company has chosen our touch screen solution, zForce. Our low cost zForce touch screen with fast and accurate full finger support in combination with high resolution pen support and low power consumption has proven to be a winner,? said Thomas Eriksson, CEO of Neonode Technologies AB. ?We have listened to what the market wants and zForce delivers a superior level of user touch experience that is extremely cost effective. As a result, we are experiencing a very strong interest from companies who produce a wide array of hand held consumer and industrial products,? continued Mr. Eriksson.

Neonode offers touch solutions for portable devices that are many times more cost effective than any other high performance touch solutions in the market today. zForce incorporates all the functionality and performance features of traditional touch solutions like resistive and capacitive. zForce supports high resolution pen input, multi-finger touch, gestures like zooming combined with superior picture quality. zForce is currently integrated in or being integrated into products such as mobile phones, e Readers, mobile internet devices and tablet PC's.

Please visit our web site at www.neonode.com or contact

Thomas Eriksson, CEO of Neonode Technologies AB
[e-mail]
Tel:  [phone]
Mobile: [phone]

David Brunton, CFO
[e-mail]
[phone]

About Neonode Inc

Neonode Inc is the leading provider of optical touch screen solutions for hand-held and small to midsize devices. Neonode is offering software licenses and engineering design services that enable companies to make high functionality touch screens at a low cost. zForce is the name of Neonode's proprietary patented touch screen technology. Neonode Inc is listed on the OTCBB under the symbol NEON.OB.

Forward-Looking Statements

This news release contains certain forward-looking statements that involve risks and uncertainties, including statements regarding future products and technology developments. Such statements are only predictions and the company's actual results may differ materially from those anticipated in these forward-looking statements. Factors that may cause such differences include, but are not limited to, the ability of Neonode to develop and sell new products and technologies. These factors and others are more fully discussed in the documents the company files from time to time with the Securities and Exchange Commission, particularly, the company's most recent Form 10-K and Form 10-Q. Neonode and the Neonode logo are registered trademarks of Neonode Inc.

Neonode, Inc.
Thomas Eriksson, [phone] or [phone] (mobile)
[e-mail]
David Brunton, [phone]
[e-mail]