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IoT User Interface Authors: Elizabeth White, Yakov Fain, John Basso, Derek Weeks, Asim Saddal

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Neonode® Introduces Bluetooth Proximity Sensing Reference Designs for All Major Phone Brands

Neonode Inc., (NASDAQ: NEON), the optical touch technology company, will unveil today its new high-performance Proximity Sensing solutions that can either be integrated directly into Android, iPhone and Windows Mobile devices or into their accessories (i.e. external cases). These major innovations are based on Neonode's award-winning and patented Multisensing optical infrared technologies.

By applying Neonode’s long and short range proximity sensors to a mobile phone cover, or simply build it directly into a device, the mobile user interface (UI) and device control is no longer confined to the industry standard 4-10” 2-dimensional window. Any angle or surface of a portable device can now be multi-touch and proximity enabled – front, sides and back. This innovation provides a whole new type of extended and augmented user experience, called Proximity Devices. The user experience is extended well beyond the device's physical borders, and on to the surrounding surface, allowing the user to interact with the UI in an intuitive way.

“This year at Mobile World Congress, we are delighted to demonstrate the result of some exceptional engineering accomplishments,” says Thomas Eriksson, Neonode CEO. “The end-user's demands for a differentiated user experience is growing exponentially with the development of high-speed, cloud based networks and smart devices. By enabling the launch of Proximity Devices, we believe we are providing an opportunity for forward-looking companies to provide unique and futuristic user experiences,” continues Eriksson.

“Neonode’s aim is to make a real difference by developing high performing and cost-disruptive Multisensing™ solutions, coupled with our expertise in User Experience, and User Interface Design,” Eriksson concluded.

In addition, Neonode will also be showing its Multisensing technology applied to flush (flat) devices (that require no bezel) that can receive user input from any generic object including standards pens and paintbrushes. Furthermore, the company will demonstrate optical touch and gesture-enabled keyboards, underwater touch enabled-devices, and proximity solutions for the automotive industry.

Media and Customers are welcome to visit Neonode Mobile World Congress, Fira Gran Via, Hall 7, Stand 7C30. Find us at http://bit.ly/W7qGuN

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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