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World Leading Bus Manufacturer Marcopolo Signs Multisensing™ Touch Technology License Agreement with Neonode®

Neonode Inc., (NASDAQ:NEON), the optical touch technology company, announced today that it has entered a long-term partnership with world leading global bus manufacturer Marcopolo, with the purpose to develop future generation driver ergonomics and safety solutions incorporating Neonode’s front-line Multisensing technology.

“We are very excited to announce the close cooperation with Marcopolo. It is a significant milestone for us signaling the rapid influx of interest in our technology, and the keen automotive industry pull for our offer. We are also encouraged by the fact that the automotive market in general is increasingly influenced by consumers' expectations for intuitive and reliable HMI systems, which is one of Neonode’s areas of expertise” says Thomas Eriksson, Neonode CEO. “The automotive manufacturers’ need for shortened design cycles and faster time to market are important factors to consider, and we believe that we are perfectly positioned to meet that demand and fully equipped to continue our positive automotive market penetration” concluded Eriksson.

The Neonode Multisensing touch solutions for automotive are developed to fulfill the strictest requirements and safety regulations surrounding automotive components and technologies and still maintain a high degree of flexibility in design and operation. The reliable technology is built to create a premium user experience in cost sensitive in-vehicle touch enabled Human Machine Interface (HMI) systems. Among the advantages are built-in diagnostics that provide a self-reliant system able to communicate, not only the actual touch coordinates, but also alert its operational status to other critical on-board systems. The technology is also allowing for a 100% transparent, no-glare interface that is undisturbed by other light sources such as sunlight. Neonode’s Multisensing technology is based on infrared light, enabling touch by any type of object such as gloved fingers, stylus or ordinary pens.

According to DisplaySearch’s "Automotive Displays Report" published in 2012, flat panel displays are becoming more predominant in applications such as navigation, multi-functional in-console monitors, and rear seat entertainment. NPD DisplaySearch expects shipments for the automotive segment to grow by nearly 50%, from 42 million units in 2011 to 62 million in 2015.

The global market for automotive HMI systems is expected to reach $13.1 billion by 2017, according to research report titled "Automotive Human Machine Interface Systems: A Global Strategic Business Report" announced by Global Industry Analysts Inc. in 2011

About Marcopolo

Marcopolo is a leader in the Brazilian market in the bus sector and is positioned among the biggest manufacturers in the world. It amplified production and commercialization operations and, today, it has an active presence in more than a hundred countries in five continents. Established in 1949 Marcopolo is today a global leader in bus body manufacturing with more than 18.000 employees globally.

http://www.marcopolo.com.br/website/2011/marcopolo/en/a_marcopolo/empresa

About Neonode Inc.

Neonode Inc. (NASDAQ:NEON) develops and licenses the next generation of MultiSensing touch technologies, allowing companies to differentiate themselves by making high performing touch solutions at a competitive cost. Neonode is at the forefront of providing unparalleled user experiences that offer significant advantages for OEM's. This includes state-of-the-art technology features such as low latency pen or brush sensing, remarkably high speed scanning, proximity-, pressure-, and depth sensing capabilities and object-size measuring.

Neonode’s patented MultiSensing technology is developed for a wide range of devices like mobile phones, tablets and e-readers, toys and gaming consoles, printers and office equipment, automotive or inflight infotainment systems. NEONODE, the NEONODE Logo and zFORCE are trademarks of Neonode Inc. registered in the United States and other countries. MULTISENSING, LIQUID SENSING, IT MAKES SENSE and ALWAYSON are trademarks of Neonode Inc. For more information please visit www.neonode.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These include, but are not limited to, statements relating to expectations, future performance or future events, and product cost, performance, and functionality matters. These statements are based on current assumptions, expectations and information available to Neonode management and involve a number of known and unknown risks, uncertainties and other factors that may cause Neonode's actual results, levels of activity, performance or achievements to be materially different from any expressed or implied by these forward-looking statements.

These risks, uncertainties, and factors are discussed under "Risk Factors" and elsewhere in Neonode's public filings with the U.S. Securities and Exchange Commission from time to time, including Neonode's annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K. You are advised to carefully consider these various risks, uncertainties and other factors. Although Neonode management believes that the forward-looking statements contained in this press release are reasonable, it can give no assurance that its expectations will be fulfilled. Forward-looking statements are made as of today's date, and Neonode undertakes no duty to update or revise them.

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