News Release

STOCKHOLM, Jul 09, 2010 (BUSINESS WIRE) --

Neonode, Inc. (NEON.OB), the Swedish leading Optical Touchscreen Technology Company, announced today that it has signed a technology license agreement with one of the leading e-publishing companies in China in partnership with one of the largest ODM companies in Taiwan. The zForce license includes Neonode's patented touch screen technology supporting high resolution finger navigation with gestures and sweeps.

"I am happy to announce our latest customer win for zForce. Our zForce touchscreen solution greatly improves user experience when navigating and using e-book readers," said Thomas Eriksson, CEO of Neonode Technologies AB.

Neonode delivers a touch solution that is many times more cost effective than any other high performance touch solutions currently in the market. Neonode's technology incorporates all functionality and performance features from traditional touch screen solutions such as resistive and capacitive. zForce supports high resolution pen input, multi-finger touch control combined with superior picture quality. zForceis currently being integrated into products such as mobile phones, mobile internet devices, e-books, digital picture frames and tablet PC's.

For more information:

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

Thomas Eriksson, CEO, Neonode Technologies AB
Linnegatan 89
SE-115 23 Stockholm
Sweden
Tel: +46 (0)8 667 17 17
E-mail: sales@neonode.com

About Neonode Technologies AB.

Neonode Inc is the leading provider of optical touchscreen 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 touchscreens at a low cost. zForce is the name of Neonode's proprietary patented touchscreen technology. Neonode Technologies AB, a wholly owned subsidiary of Neonode, Inc., has its base in Stockholm, Sweden. 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.

SOURCE: Neonode, Inc.

Neonode Technologies AB
Thomas Eriksson, +46 (0)8 667 17 17