Tags: Asia, Beijing CCID Data, Chinese, Chinese XT9, English, Indonesia, Malaysia, Neonode, Neonode N2, neonode.com, Pinyin, Russian

Additional Language Support; Traditional and Simplified Chinese, Indonesian and Malay for Malaysia

Neonode (NASDAQ:NEON), the Swedish mobile communication company that develops touch screen technologies and designs mobile handsets, today announced it has integrated Chinese XT9 text input interface with phrase prediction in its pioneer multimedia touch screen phone, the Neonode N2. As a part of the Neonode N2 the new software with Chinese input support is available free for download at the Company’s website, http://www.neonode.com. It is anticipated that the updated Neonode N2 will be shipped to various markets in Asia in 2008.

With the integrated Chinese smart text input the Neonode N2 offers the four most essential features required by Chinese mobile users according to Beijing CCID Data Co., Ltd. survey results from 2005; phrasal context prediction, phrasal text input, reorder phrases in selection list based on phrase use frequency by end user, stroke and phonetic support “Pinyin” for Simplified and Traditional Chinese input.

In addition to the XT9 input support for Simplified and Traditional Chinese, Neonode also extends its text input capabilities support for Asia by introducing T9 text input for Malaysia and Indonesia. With the addition of Simplified and Traditional Chinese, Indonesian and Malay for Malaysia, the Neonode N2 is now localized to 20 languages in total. Neonode’s prominent sweep and tap based touch screen technology allows instant text message language selection enabling the user to alternate between different alphabets and languages easily; changing text input from English to Russian to Chinese with just a touch of a finger.

Per Hellberg, Vice President of Sales at Neonode said, “With the new software upgrade, the localization of Traditional and Simplified Chinese and additional language support for Malaysia and Indonesia, we believe we have a really competitive product that opens up new possibilities in Asia. We are very pleased to present this upgrade to our current customers as well as new, potential customers in various Asian markets.”

The Chinese XT9 text input is supplied by Nuance, a leading provider of speech and imaging solutions worldwide. Eric Collins, General Manager for Nuance Communication’s T9 Business Unit said, “We are delighted that Neonode is launching its touch screen phone with Chinese XT9 Smart Input. XT9 Smart Input is the first of its kind multi-modal user interface solution for feature-rich smart phones and advanced mobile devices, and has the potential to be the key multi-modal platform for millions of mobile users globally.”

For all Neonode N2 users the upgraded software is available for free download at the company web, http://www.neonode.com.

About Neonode Inc.

Neonode Inc specializes in optical finger based touch screen technology. Neonode’s mission is to enhance user experience related to any consumer or industrial device that can benefit from a finger based touch screen solution. Neonode Inc. is a publicly traded company (NASDAQ:NEON) with offices in Stockholm, Sweden and San Ramon, USA. For more information, visit www.neonode.com.

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 trademarks of their respective holders.

Contacts

Neonode
Karin Lehmann Nilsson, +46 8 678 18 50
Information Manager