Europe : Neonode, the Swedish mobile communication company that develops touch screen technologies and designs mobile handsets, today announced it has entered the largest market in Western Europe by striking a deal with Brodos AG, one of the leading distributors and retailers in Germany. The German market comprises 25.6% of all handset sales in Europe; according to a 2007 industry report by market research firm RNCOS.

Brodos AG has a wide-ranging franchising system of major retailers, including the company's independent mobile chain of 500 outlets, my-eXtra. Brodos is the provider of major brands such as Nokia, Samsung, Sony Ericsson and LG. In addition to its own stores, my-eXtra supplies about 5,000 German dealers with mobile phones and enhancements.

The Neonode N2 will initially be sold in my-eXtra's stores beginning in May and subsequently rolled out in Brodos' extensive network of independent retailers. The first shipment was made in April.

With subscription at major carriers such as T-Mobile, Vodafone, E-Plus and O2 the Neonode N2 may be available to customers for as low as 1 EURO.

"Neonode N2 is a powerful and versatile multimedia mobile phone with state-of the-art touch screen technology that is likely to be well-received by our network of dealers," said Stefan Vitzithum, CPO at Brodos AG. "We are confident that the Neonode N2 will be an attractive addition to our portfolio of consumer technology products."

Neonode's entry into Germany and Brodos AG is facilitated by Sapera GmbH, a major market entry and sales specialist liaised with all leading mobile operators, major distributors and service providers nationwide. As Neonode's sales agent Sapera will, as a continuance, broaden the Company's distribution and marketing reach in Germany.

"We feel that this partnership holds great possibilities and the Sapera-Brodos arrangement enables Neonode a perfect entry into Germany," said Per Hellberg, Vice President of Sales at Neonode. "It is with great reassurance we are now launching the Neonode N2 in the largest Western European market."

The Neonode N2 will debut in Germany on April 28 in a pre-launch campaign on the exclusive online fashion and lifestyle shopping community BuyVIP (http://www.buyvip.de).