Neonode Launches Touch Screen Solution Family ClearTouchTM and ClearTouch DPFTM Targeted at the Digital Picture Frame Market

Business Wire, May 28, 2009

STOCKHOLM -- Neonode, Inc. (OTCBB:NEON), the Swedish world leading optical touchscreen technology Company, today announced the launch of its new product family of touch screen solution, ClearTouchTM. Neonode’s ClearTouchTM is targeting manufacturers who develop and sell products that have high demands for both the best possible picture quality and high performance user functionality. The Company is a leading provider of optical touch screen solutions for hand-held devices and small to midsize screens. By launching its new product family, ClearTouchTM, Neonode is further positioning itself to be at the forefront of the touch screen revolution.

“There are many types of products that historically have not been able to use traditional touch screen technologies (resistive and capacitive) because of high demands for picture quality and user functionality. We’re happy that we can now offer these companies a high quality touch screen solution at a very competitive price,” said Thomas Eriksson, CEO of Neonode Technology AB and co-founder of Neonode, Inc.

The first product within the ClearTouchTM product family is ClearTouch DPFTM. ClearTouch DPFTM is a complete tailor made touch screen solution for the digital picture frame market. ClearTouch DPFTM offers 100% transparency (no overlay or protection glass needed) and a high level user experience at a very attractive cost. To date, other touch screen technologies have not been suitable for the digital picture frame markets because they are too expensive and they reduce picture quality below an acceptable level. The first ClearTouchTM product, ClearTouch DPFTM, has solved these problems and for the first time provides manufacturers and developers of digital picture frames a truly cost effective flexible solution that enhances user functionality without affecting the picture quality.

“The electronic digital picture frame market is virtually unpenetrated when it comes to easy to use and economical touch screen solutions. More and more consumers are demanding ease of use combined with a full feature menu of navigation options that you can activate with a simple touch or sweep of your finger. Our ClearTouch DPFTM product fills the need for both consumers and manufacturers and will usher in a new era of touch screen electronic digital picture frames. We see a huge demand for this type of solution and we already have several products being designed by customers based on ClearTouch PFTM,” concluded Eriksson.

ClearTouch DPF™ is now shipping. Please contact the Neonode sales department for product information and pricing.

For more information:

Thomas Eriksson, CEO, Neonode Technologies ABLinnegatan 89SE-115 23 StockholmSwedenTel: 46 (0)8 667 17 17E-mail: sales@neonode.com

About Neonode Technologies AB.

Neonode Inc. is the world leading provider of optical touch screen solutions for hand-held devices. zForceTM is the name of Neonode’s proprietary patented touch screen 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.