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Neonode® Establishes New Subsidiary in Tokyo, Japan, to Meet a High Demand for Its MultiSensing™ Touch Technology

Neonode Inc. (NASDAQ:NEON), the optical touch technology company, today announced the expansion of the company's operations in the form of a new subsidiary in Tokyo, Japan, named Neonode Japan Inc. Establishing a localized sales and technical support presence will allow Neonode to meet the growing demand for MultiSensing touch solutions from Japanese OEMs.

According to the research institute Euromonitor International, Japan alone accounts for approximately 40% share of the global market for consumer durables and electronics for cars, office equipment, digital toys, mobile phones, and tablets. Many of these products are today transitioning from old fashioned designs equipped with buttons, to more up-to-date touch enabled user interfaces.

“We are excited to be able to offer our existing and future customers first-class, hands-on local service and support. Furthermore, we have identified numerous and substantial new business opportunities in Japan. We believe that our MultiSensing™ touch solutions are a key differentiator for a number of forward-thinking OEM's, particularly within the robust Japanese automotive and consumer electronics industries. By establishing a Japanese subsidiary, Neonode will continue to offer tremendous value and excellent service to our expanding and increasingly-global customer base,” said Thomas Eriksson, CEO Neonode.

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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