Neonode Inc. Enters Asian Distribution Deal for Neonode N2

Neonode (NASDAQ:NEON), the Swedish mobile communication company that develops touch screen technologies and designs mobile handsets, today announced that Excel Field International LTD, a major privately held Asian distributor, has placed an initial $1.1 Million order for the Neonode N2 handset for April.

Excel Field International has direct reach to 4,000 retail outlets in Indonesia, Malaysia, Singapore, Taiwan and Thailand throughout which the Neonode N2 will be distributed.

“We are delighted to add Excel Field International to our growing list of global partners. They will play an important role when we now enhance our focus of moving into the Asian market and the relationship also represents an important step forward in achieving our 2008 sales target of 200,000 phones,” said Per Hellberg, Vice President of Sales at Neonode.

“The interest for our phones and technology has been strong in these markets and through Excel Field’s relationship with key carriers and retailers within the region, we are now well-equipped to establish Neonode as a niche player and not only compete against the big established players in the region, with Nokia (NYSE:NOK) and Samsung (LSE:SMSN) in top, but also the smaller local players on their home markets,” Hellberg continued.

A recent JPMorgan (NYSE:JPM) report forecast unit shipments of handsets in Asia-Pacific would reach almost 540 million units in 2008, which was over three times more than the 161.6 million units they expected would be sold in the United States. IMS Research indicates that the Asian market will see 10.7 percent year-over-year growth in 2008, compared to 7% growth for the United States.

“Neonode is at the forefront of touch screen technology and the Neonode N2 is highly capable of presenting the next big thing in the market. We are happy to include such an innovative Scandinavian brand in our portfolio,” said Brian Ho, CEO and Founder of Excel Field International LTD.

About Neonode

Neonode designs and develops intuitive touch screen technologies and products. The company’s focus is on solutions that increase the user experience of complex or monotonous devices. With offices in Stockholm, Sweden, San Ramon, USA, Shanghai and Hong Kong, China, Neonode Inc. is a publicly traded company (NASDAQ:NEON) with licenses and products sold worldwide through both direct web sales and local distribution partners. The affiliated company, Neonode USA, markets Neonode’s innovative products within North America, Latin America and China and is the exclusive worldwide licensor of the Neonode Intellectual Property to third parties. Neonode USA’s main office is located in New York, USA. For more information, visit www.neonode.com.

About Excel Field International LTD

Excel Field International LTD’s distributes and markets mobile phones and wireless communication devices throughout the Asia region. With its head office in Hong Kong and representative offices located throughout Malaysia, Thailand, Taiwan, Indonesia and Singapore, the Excel Field team of dedicated sales, supporting and marketing professional staff can reach deep into the territory and respond to demand changes quickly. Excel Field International LTD works closely with local partners, regulatory agencies and operators to form close networking and relationships to introduce and position key products into their respective market segments. Excel Field understands the market demand well from its years of experience serving and distributing to various segments within each county.

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. All other brand or product names are trademarks or registered.

Contacts

Neonode
Karin Lehmann Nilsson, +46 8 678 18 50
Information Manager
or
Excel Field International LTD
Brian Ho, CEO, 852-2251-8892
brian {at} excelfield(.)com
or
Allen & Caron Inc
Brian Kennedy, +1-212-691-8087 (Media)
brian {at} allencaron(.)com
Rudy Barrio, +1-212-691-8087 (Investors)
r.barrio {at} allencaron(.)com