Neonode Announces 25:1 Reverse Stock Split

Neonode Inc., a provider of optical touchscreen innovation solutions for hand-held and small to midsize devices, today announced it has filed a certificate of amendment to its Amended and Restated Certificate of Incorporation to effect a twenty five-for-one reverse stock split of Neonode's common and preferred stock.

Different company than it

"Neonode today is a different company than it was three years ago," said Thomas Eriksson, Chief Executive Officer of Neonode. "Over the past several months, we have announced significant licensing arrangements with global market leading original equipment manufacturers of hand-held devices. As we see sales increase, especially in the United States, we are implementing this reverse split in order to organize our capital structure and make our share price more attractive for institutional and other investors. We believe that our current volume of business and the prospects for expansion into additional markets can sustain the post-reverse-split market price of our shares."

Neonode anticipates that the reverse stock split will be effective as of the close of business on March 25, 2011, and that trading of the Company's common stock on the OTCBB on a split-adjusted basis will begin at the open of trading on March 28, 2011. When the reverse stock split becomes effective, every twenty-five shares of issued and outstanding Neonode stock will be combined into one issued and outstanding share of stock, without any change in the par value per share. This will reduce the number of outstanding shares of Neonode common stock from roughly 556.70 million shares to roughly 22.27 million shares. Neonode's shares of common stock will continue trading on the OTCBB in accordance with the symbol "NEON", nevertheless will trade pursuant to this agreement a new CUSIP number.

Neonode Inc. is a leading provider of optical touch screen solutions for hand-held and small to midsize devices. Neonode is offering software licenses and engineering design services that enable companies to make high functionality touch screens at a low cost. zForce ® is the name of Neonode's proprietary patented touch screen innovation. Neonode Inc is listed on the OTCBB pursuant to this agreement the symbol NEON.OB. Neonode is a trademark and zForce® is a registered trademark of Neonode Inc.

Neonode's patented touch solution for portable devices, zForce, is many times more cost effective than any other high performance touch solution in the market today. zForce® supports high resolution pen writing in combination with finger navigation including gestures, multi-touch, sweeps and much more. zForce® doesn't require an overlay on top of the display window and provide a 100% clear viewing experience..zForce is the only viable touch screen solution that operates on the new revolutionary reflective display panels. Neonode has signed customer contracts with Sony Corporation and other global OEM's. zForce® is currently being integrated into a variety of mobile phones, eReaders, automotive applications, mobile internet and tablet devices.