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  Neonode Inc. Launches Specially Designed Color Portfolio For New Mobile Phone, Neonode N2

    STOCKHOLM, Sweden, Feb. 21 /PRNewswire-FirstCall/ -- Neonode (Nasdaq:
NEON), the Swedish mobile communication company that develops touch screen
technologies and designs mobile handsets in which the technology also can
be used, today announced the release of a new color portfolio for Neonode
N2, the company's latest, highly acclaimed, mobile phone.

    Neonode N2 has been available in black since its launch in August 2007
but due to increased customer demand Neonode has moved up the launch of
four new specially designed colors.

    Details about the colors will be presented on the company's web site,
http://www.neonode.com, in March. Balda AG Group (BALOF) is producing the new
colors through its Malaysian-based Balda Solutions Malaysia, (BSM). Balda
AG Group is a well reputed manufacturer with companies such as Sony
Ericsson (SNE/ERXF), Nokia (NOK), Canon (CAJ), Motorola (MOT), Phillips
(PHILIPS CON) and Hitachi (HIT), among their clients.

    "The release of the color portfolio is a natural extension of a great
product that has already sold more than 30,000 units in the last quarter of
2007. We strongly believe that the new colors as well as upcoming
accessories will constitute a product assortment that will enhance our
coming sales of Neonode N2 even further," said Per Hellberg, Vice President
of Sales at Neonode.

    Currently Neonode N2 is available throughout markets in Europe and is
also sold via the company's web shop. Recently the company made its first
shipment of Neonode N2 to India, by signing a distribution agreement with
privately held Turnstone Mobile Media LLC. Neonode's innovative products
are marketed in North America, Latin America and China through Neonode USA.

    Neonode Inc. will issue their 2007 financial results during March and
will also host an earnings conference call for interested parties. The
details of the conference call are to be announced later this month.

    About Neonode Inc.

    Neonode designs and develops intuitive technologies and products. The
company's focus is on solutions that increase the user experience of
complex or monotonous devices. With offices in Stockholm, Sweden, San
Ramon, USA, Shanghai and Hong Kong, China, Neonode Inc. is a publicly
traded company (Nasdaq: NEON) with licenses and products sold worldwide
through both direct web sales and local distribution partners. For more
information, visit http://www.neonode.com.

    About Neonode USA

    Neonode USA, formed by Neonode, Inc. the Swedish mobile communication
company that designs and develops intuitive technologies and products, and
Distribution Management Consolidators LLC (DMC), a sales channel
development and supply chain management company, markets and sells Neonode
branded products within North America, Latin America and China. The company
is also the exclusive worldwide licensor of Neonode Intellectual Property
to third parties, including its patented "zforce" optical touch screen and
"neno" user interface.

    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. All other brand or product names
are trademarks or registered.


Contacts: Karin Lehmann Nilsson, Information Manager Neonode Tel: +46 708 25 40 91 Allen & Caron Inc Tel: +1 212 691 8087 Media: Brian Kennedy (brian@allencaron.com) Investors: Rudy Barrio (r.barrio@allencaron.com
  SOURCE Neonode Inc.




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Related links:
  • http://www.neonode.com
    CONTACT:
    Karin Lehmann Nilsson, Information Manager of
    Neonode, +46 708 25 40 91; or Anthony Antolino, Vice President of
    Sales and Marketing of Neonode USA, +1-212-448-7636; or Media,
    Brian Kennedy, brian@allencaron.com, or Investors, Rudy Barrio,
    r.barrio@allencaron.com, both of Allen & Caron Inc,
    +1-212-691-8087

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