Neonode Inc.

THE CEO’S COMMENTS

“The second quarter of this year continued to see a decline in revenues from our legacy business as demand for our solutions in the printer and automotive infotainment markets maintained their negative trend. Despite these challenges – that we expect to remain until new customers have moved from deployment phase to production phase – we are actively working to expand business opportunities and advance the product roadmap across our two core technology platforms: MultiSensing® and zForce®. This will drive the company’s sustainable future growth and will in time offset the negative trend within the legacy business,” said Daniel Alexus, President & CEO of Neonode.

“For MultiSensing, we continue to build on and invest in being the first mover in fully synthetic, data-driven HMI solutions – where our execution speed will continue to outperform the competition. While we continue to deliver on previously announced customer projects, we will also continue to build strategic partnerships within the automotive sector. In parallel, we are exploring new verticals where our unique value proposition, especially for addressing narrow-vision challenges, can be deployed more rapidly. With the zForce platform, we continue to serve our existing customer base while focusing on new project deliveries.”

“Our continued priority across both platforms is to deliver attractive solutions that address the challenges our customers face and that they see as worth investing in,” concluded Mr. Alexus.