Neonode Announces A New License Agreement For An Evolution Of Its Licensable Touch Sensor Module Technology; NEXTY Electronics Corp Has Selected Neonode's TSM Technology For Sensor Development And Manufacturing Of Amusement Machines For A Leading Manufacturer In Japan's Amusement Market; Estimated To Have A Value Of $2M–$3M Over The Next 4 To 5 Years

Neonode Inc. (NASDAQ:NEON) ("Neonode") is pleased to announce a new license agreement for an evolution of its licensable Touch Sensor Module ("TSM") technology. NEXTY Electronics Corporation ("NEXTY Electronics"), an electronics trading company of the Toyota Tsusho Group, has selected Neonode's TSM technology for sensor development and manufacturing of the next-generation amusement machines for a leading manufacturer in Japan's amusement market. The agreement includes an upfront technology access fee and future royalties and is estimated to have a value of US$2–3 million over the next four to five years.

NEXTY Electronics chose to license Neonode's latest TSM offering, primarily based on surface-mount technology ("SMT"), which enables touch interactivity on larger displays, surfaces and projected planes at a lower cost than alternative solutions. Easily integrated using a single-sided TSM sensor, Neonode's touch interaction technology delivers exceptional performance and value to any touch-operated application. NEXTY Electronics will manufacture the TSMs in Japan for delivery to companies in the Japanese amusement market as well as in other markets that desire high quality, cost-effective touch functionality on large displays and surfaces.