Neonode® Issued US Patent For Sweep Gesture User Interface

Neonode, Inc. (NEON.OB), the Optical Touch Screen Technology Company, announced today the January 10th, 2012 issuance to Neonode, Inc. by the US Patent and Trademark Office of patent number 8,095,879 for sweep gesture user interfaces. The patent covers activating a function in response to a touch-and-glide operation on a touch sensitive surface. This patent complements Neonode’s US patents 7,880,732 and 8,068,101 for small to midsize touchscreen devices. The patented technology is marketed and sold as Neonode’s offer to OEMs and ODMs.

About Neonode

Neonode is a provider of optical touch technologies for portable devices. Neonode offers technology licenses and engineering design services enabling companies to make high functionality touch screens at low cost. Neonode's customers include Sony, L&I and Barnes & Noble. Neonode is characterized by unparalleled user experiences with technologies that offer significant advantages with features such as no overlay, low latency pen tracking, high speed scanning, proximity sensing and object-size measuring. Neonode’s patented touch solution zForce is developed for touch enabled smart phones and tablets, toys and games devices, health appliances, printers and office equipment, e-readers and automotive applications. Neonode Inc. is traded on the OTCBB under the symbol NEON.OB. Neonode and zForce are registered trademarks of Neonode Inc.

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.

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