Neonode® Issued US Patent for Light-Based Touch Controls on a Steering Wheel and Dashboard

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Published July 10, 2014 in Press release

SANTA CLARA, California – July 10, 2014 Neonode Inc., (NASDAQ: NEON), the optical-touch technology licensing company, announced that the US Patent and Trademark Office (USPTO) has recently issued Neonode patent #8,775,023 (‘023) for Light-Based Touch Controls on a Steering Wheel and Dashboard.

The ‘023 patent covers controlling in-car entertainment and navigation systems via hand gestures performed on a touch-sensitive steering wheel. This patent expands Neonode’s family of sweep gesture patents, which include US Patent Nos. 8,095,879 and 8,650,510. This is Neonode’s 17th issued US patent and its 42nd issued patent worldwide.

Neonode’s groundbreaking and patented “steering wheel” technology allows for innovative and cost-efficient interior design, while improving usability and safety. Moreover, this smart steering wheel solution enables auto OEMs to substantially simplify interior design, while lowering system costs. Automobile manufacturers are increasingly focused on improving driver ergonomics and safety, and thus, are migrating interior controls from the center console to the steering wheel.

Neonode’s new steering wheel patent leverages zForce™AIR™ (AIR) solutions, which enable open-air gestures on a steering wheel, or any other device. Neonode’s AIR sensor is a modular bar that can be integrated into, or onto, any device, and projects an infrared light field onto any desired touch area. The result is remarkable flexibility in industrial design, and differentiated leading edge functionality.

“The automotive sector response to Neonode’s steering wheel has been overwhelming, with numerous projects underway. We believe our AIR technology is so unique and disruptive, for it will deliver greater safety options for drivers, while make driving far more enjoyable.” said Thomas Eriksson, CEO of Neonode Inc.

Neonode works with module makers so that a standardized module can be deliverer the OEM. It is anticipated that this new technology will be seen in production car models during 2016.

For more information about Neonode´s and our solutions:

Sales contact:

• Bengt Edlund (bengt.edlund@neonode.com) VP of Global Sales Consumer

• Gunnar Fröjdh (gunnar.frojdh@neonode.com) VP of Global Sales Automotive

Media, Investors and Analysts contact:

• Daniel Gelbtuch (daniel.gelbtuch@neonode.com) SVP of Investor Relations, Mobile: +1 917.509.9582

About Neonode

Neonode Inc. (NASDAQ:NEON) develops and licenses the next generation of MultiSensing® touch technologies, allowing companies to differentiate themselves by making high performing touch and proximity 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 touch and proximity technology features such as low latency pen or brush sensing, high speed scanning, proximity-, pressure-, and depth sensing capabilities and object-size measuring.

Neonode’s patented MultiSensing technology is developed into a wide range of devices such as all-in-one PCs, notebooks, monitors, e-readers, printers, white goods, wearables, mobile and PC accessories, and advanced automotive infotainment systems.

Neonode, the Neonode logo, MultiSensing, and zForce are trademarks of Neonode Inc. registered in the United States and other countries. zForce AIR is a trademark 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.

Neonode only releases news of new customer agreements and design wins that are considered to be potentially material. Although every reasonable effort is made to present current and accurate information, Neonode makes no guarantees of any kind. Even if the customer or partner always has the intention to actually launch a commercial product or product line in high volume, there is no guarantee that this will be the case. Besides the touch solution, a commercial product involves many other components and systems that effects the customer’s development process.

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