Neonode® Launches Major Touch Innovations for an Enhanced Lifestyle at International CES 2013

Neonode to demonstrate the latest MultiSensing^TM features, such as
Water Submerged Tablets, Super-Sensory Steering Wheels, and Proximity Sensing
for an extended and enhanced mobile user experience.

Visitors and Media are invited to meet the Neonode Team at the Las Vegas
Convention Center (LVCC) South Hall 4, Booth 37116, from January 8^th to the 11^th.

SANTA CLARA, Calif.--(BUSINESS WIRE)--Neonode Inc., (NASDAQ: NEON), the optical touch technology company, will be publicly introducing and demonstrating its latest proximity and 3-dimensional sensing technologies, for the next generation of touch-enabled consumer devices and car ergonomics, at the International CES 2013, which will be held in Las Vegas from January 8^th to the 11^th.

“We have made it our mission to develop the next generation of touch solutions, significantly raising the bar and perception of possibilities”

Neonode will be showcasing at two CES floor venues:

• Neonode’s main booth at LVCC’s South Hall 4, Upper Level: Booth 37116. For more information see http://www.neonode.com/ces2013 or for a floor map see: http://bit.ly/YtHCyM
• Neonode’s technology for the automotive industry featured in Texas Instruments’ Automotive Experience Zone: LVCC North Hall: N116 and N117. See http://www.ti.com/ww/en/ces/2013/ces-auto.shtml

Embodying the spirit of the new “Apply Life!” concept (http://www.neonode.com/ces2013), Neonode has developed a multi-function steering wheel for the automotive industry and is showcasing it in close cooperation with Texas Instruments, in their Automotive Experience Zone. A driver can now interact with this next-generation Neonode-powered steering wheel, using gestures to fully control audio, visual, infotainment, and telematics systems. This allows for a whole new HMI (human machine interface) system, that replaces old, traditional buttons and other mechanical input devices, with unlimited gestures and best-of-breed multi-touch functionality.

Neonode will also demonstrate new ways of using proximity sensing (i.e. touch-less control) to expand the user’s gesture-area beyond the physical (i.e. touchable) borders of the device display. These new proximity-sensing features significantly enhance the user experience on mobile phones, tablets, toys, and gaming devices.

Neonode’s patented optical touch technology is also a top match for devices that must withstand and function in extreme environmental conditions and temperatures. To showcase these features, Neonode will be demonstrating a water-submerged touch-enabled device, which will allow visitors to interact with it in and under water.

“We have made it our mission to develop the next generation of touch solutions, significantly raising the bar and perception of possibilities,” said Thomas Eriksson, Neonode CEO. “Our patented MultiSensing^TM technology has emerged from years of design-driven innovation, and is now enabling user experiences that could transform the way the world interacts with devices. Thus, we are very excited to publically invite all CES attendees to experience our latest touch innovations.“

Neonode’s MultiSensing technology, which rivals the best capacitive solutions, is being incorporated into wide array of high volume products worldwide: mobile phones, tablets, office equipment, in-car infotainment displays, GPS, gaming devices and toys.

Companies like SONY, Barnes & Noble, Kobo, One Laptop Per Child (OLPC) and many other well-known name-brands, manufacture products based on Neonode’s MultiSensing technology. Neonode’s touch solutions incorporate the customized Neonode NN1001, the world’s first single optical controller chip, which has been developed in close collaboration with Texas Instruments. To date, the Neonode MultiSensing solution is used on more than 10 million touch consumer devices in the global market place.

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.