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Neonode Announces SAT[TM] (Selected Area Touch).

A New Innovative Touch Screen Solution That Delivers Improved User Experience at the Best Price for Performance

STOCKHOLM -- Neonode Inc (OTCBB:NEON), the Swedish world leading optical touch screen technology company, today announced the launch of SAT[TM] (Selected Area Touch). SAT(TM) uses part of the touch area for touch activation and dramatically reduces the cost for typical applications. All of Neonode's products, including SAT[TM], are based on our zForce[TM] optical touch screen technology that enables multi-finger scrolling, zooming, gestures, pivot rotate, flick, and press. zForce[TM] does not use an overlay on top of the display window therefore the screen quality can be sustained.

SAT[TM] makes it possible for manufacturers of hand held devices and devices with small to midsized screens to incorporate extremely cost competitive touch screen solutions into their products. Since all of our products are based on zForce[TM], companies can seamlessly combine SAT[TM] with our ClearTouch[TM] and zForce[TM] products to develop state-of-the-art touch screen based products that also provide for attractive thin design profiles. zForce[TM] and ClearTouch[TM] are already known for being price leading touch screen solutions and SAT[TM] brings the cost of the Neonode touch screen solutions down further.

"This is an important day for us. Our mission is to offer a touch screen solution that combines the best functionality and the best price. Our vision is that all products that interact with users will afford high functionality touch screens. SAT[TM] is a big step towards achieving this vision! SAT[TM] opens up new markets for us and now enables our customers to have the ability to develop new products incorporating a vastly improved touch screen user experience at a very attractive price point," 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:

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 the Neonode Touch Screen Technology

zForce[TM] technology is Neonode's third generation optical touch screen solution with features such as multiple touch, area detection, object contour and high speed sweeps and gestures. zForce[TM] does not require film or overlay over the screen surface making it especially suitable for Digital Picture Frames and eBooks and other rugged products that require a protective enclosure. zForce's[TM] sampling speed is so fast it can detect high speed movements on the screen and accurately trace even the most complicated human finger gesture. For example, zForce[TM] can track multiple simultaneous finger touches on the screen at the same time, measure each finger's surface area and speed and movement. Since all of our products are based on zForce[TM], companies can combine SAT[TM] with our ClearTouch[TM] products to develop state-of-the-art products such as digital picture frames, PNDs, mobile phones, notebooks, micro computers, industrial test equipment and others that incorporate a very robust cost effective touch screen user interface. Each of our products can be tailored to drastically cut costs by customizing the touch functionality to the customer's requirements.

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. zForce(TM) is 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.
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Publication:Business Wire
Date:Jul 1, 2009
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