Neonode Inc Continues Expansion with Entry Into Turkish Market

STOCKHOLM, Sweden, April 17 /PRNewswire-FirstCall/ -- Neonode
(Nasdaq: NEON), the Swedish mobile communication company that develops touch
screen technologies and designs mobile handsets, today announced it has signed
a distribution deal with Turkish Istanbul-based distributor MEP ILETISIM ve
Dis Tic. A.S. (MEP) and received an initial order for April.
Turkey is one of Europe's largest mobile phone markets with a GSM
subscriber base of 58 million, approximately 10 times the size of the Canadian
GSM market, and MEP maintains over 3000 active outlets throughout the country.
MEP has since 1999 been one of the largest distributor of the TeliaSonera
(OMX: TLSN) partly owned Turkcell (NYSE: TKC), the dominant operator in Turkey
with over 60% market share. MEP had a total turnover of $ 430 million USD in
2007 and represents several other well-known brands such as Motorola, Alcatel,
Huawei, and Firefly.
"Given the business network of MEP, Neonode sees a great potential for
business opportunities for the coming months," said Per Hellberg, Vice
President of Sales at Neonode. "This distribution deal is an important part of
our strategy as Neonode adds yet another significant market and we are very
happy to work with such a well-regarded distributor."
"We are very excited and feel confident about this innovative phone, as
this will be the favorite brand symbolizing quality and the high tech design
in the niche market of Turkish telecommunication sector," says Timur Kaya, CEO
of MEP.
Timur Kaya continues "With Neonode N2 in our portfolio, MEP will be able
to achieve great success in the fashion-oriented section and I believe we can
gain a substantial market share in this segment."
For more information:

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

Allen & Caron Inc
+1 212 691 8087
Media: Brian Kennedy (brian@allencaron.com)
Investors: Rudy Barrio (r.barrio@allencaron.com)

About MEP ILETISIM ve Dis Tic. A.S.
MEP's vision is to be the pioneer by offering the latest in technology,
service and innovation. This is carried out by incorporating all components of
cutting edge marketing activities into its organization. Through its 3000
active customers, MEP has a national reach and holds a strong position in the
Turkish market. Since 1999 MEP is an appointed distributor by Turkcell, the
most important operator in the region. Today, MEP represents many brands, and
among them, strong international brands such as Motorola, Huawei and Alcatel
as well as the innovative brand Firefly. With Neonode, MEP targets to claim
success in the niche market. The total revenue of MEP exceeded 430 million
USD in 2007. For more information, please visit www.mep.com.tr
About Neonode Inc.
Neonode designs and develops intuitive technologies and products. The
company's focus is on solutions that increase the user experience of complex
or monotonous devices. With offices in Stockholm, Sweden, San Ramon, USA,
Shanghai and Hong Kong, China, Neonode Inc. is a publicly traded company
(NASDAQ: NEON) with licenses and products sold worldwide through both direct
web sales and local distribution partners. Neonode USA, markets Neonode's
innovative products within North America, Latin America and China and is the
exclusive worldwide licensor of the Neonode Intellectual Property to third
parties. Neonode USA's main office is located in New York, 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.
SOURCE Neonode Inc.

Karin Lehmann, Information Manager of Neonode, +46 8 678 18 50; or Media:
Brian Kennedy, brian@allencaron.com, or Investors: Rudy Barrio,
r.barrio@allencaron.com, both of Allen & Caron Inc, +1-212-691-8087