Neonode Announces Design Wins for its ClearTouch™ Touch Screen Solution

Business Wire, June 16, 2009

STOCKHOLM -- Neonode Inc (OTCBB:NEON), the Swedish world leading optical touchscreen technology company, today announced design wins with two customers who are integrating its ClearTouch™ optical touch screen solution into prototypes for home appliance products including digital picture frames and MIDs (Mobile Internet Device). The first product prototype is expected to be completed in the third quarter of 2009. To qualify as a design win a customer product must have a projected annual sales volume of a minimum of 100,000 units and the product development project based on the Neonode software and IP must have started.

“We are pleased to announce the recent customer design wins for our new ClearTouch™ product line. This acceptance of our ClearTouch™ product is the positive verification that we were seeking when we developed our family of innovative touch screen solutions. The fact that we have a reliable and proven technology is of course a valuable asset for both us and our customers.

“Our focus on inexpensive high performance touch screen solutions is what our customers want. We are continuing our development efforts on further reduction of the price of our already price leading touch screen solutions combined with the highest standard of functionality and innovation,” said Thomas Eriksson, CEO of Neonode Technology AB and co-founder of Neonode Inc.

For more information:

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

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About Neonode Technologies AB

Neonode Inc is the world leading provider of optical touch screen solutions for hand-held and small to midsize devices. Neonode is selling Touch Screen Controllers and licenses that enable our customers to make high functionality touch screens at a low cost. 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.