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Neonode Issued US Patent and Trademark for Touch Screen Technology

Tuesday, February 01, 2011

Stockholm -- Neonode, Inc. (NEON.OB), the Optical Touch Screen Technology Company, announced today the issuance to it by the US Patent Office of a patent aimed at small and medium-sized screens. The patent for invention number 7,880,732 is for disambiguating a finger touch that covers more than one character on a virtual keyboard, using a light-based touch screen. The patent is vital in protecting Neonode’s touch screen technology and customer investments worldwide. This is Neonode’s fifth patent to issue. Neonode has 17 additional patents pending worldwide for its zForce® touch screen technology. In addition, Neonode also announced today that its touch screen technology name zForce® is now an official trademark registered by the US Patent and Trademark Office.

“This latest patent makes claims in connection with our technology that enable a device to determine an intended key when a user’s thumb covers more than one key on a virtual keyboard. We are delighted to add this patent to our IP portfolio for our licensing customers,” said Thomas Eriksson, CEO.

Neonode’s patented touch screen technology, zForce®, supports high resolution pen writing in combination with finger navigation including gestures, multi-touch, sweeps and much more. Unlike resistive and capacitive touch screens, zForce® touch screens have no overlay on top of the display window and provide a 100% clear viewing experience, free from reflection and parallax effects. Neonode’s touch solution for portable devices is many times more cost effective than any other high performance touch solution in the market today and is the only viable touch screen solution that will operate on the new revolutionary reflective display panels that will offer paper-like reading experience in almost any ambient lighting condition while greatly reducing power consumption. Neonode signed customer contracts with Sony Corporation, Koobe Inc and other global OEM’s and with automotive display manufacturer Daesung. In addition, zForce® is currently being integrated into a variety of mobile phones, eReaders, mobile internet and tablet PC devices.

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About Neonode Inc.

Neonode Inc. is the 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 technology. Neonode Inc. is listed on the OTCBB under the symbol NEON.OB. Neonode is a trademark and zForce® is a registered trademark of Neonode Inc. All other trademarks are the property of their respective owners.

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.

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