SBE Appears to Have Enough Votes to Secure the Merger with Neonode Inc.

  
    
  
  
    
      SBE, Inc. (NASDAQ:SBEI), a provider of high-performance IP storage 
      solutions serving remote back-up and disaster recovery applications, today 
      announced that it appears to have a sufficient number of stockholder 
      votes to complete the proposed merger with Neonode Inc., increase the 
      number of shares authorized for issuance under SBE’s 
      2006 Equity Incentive Plan and amend SBE’s 
      Amended and Restated Certificate of Incorporation to (i) effect a stock 
      combination (reverse stock split) of either 1-for-2 or 1-for-3, with the 
      specific ratio to be determined by SBE’s board 
      of directors, pursuant to which every two or three shares of 
      outstanding common stock, as applicable, would be reclassified into one 
      share of common stock; (ii) increase the authorized shares of common 
      stock from 25,000,000 to 40,000,000 and (iii) change SBE’s 
      name from SBE, Inc. to “Neonode Inc.”
    
    
      A special meeting of SBE stockholders to vote on the proposed merger 
      agreement and the other proposals set forth in the definitive proxy 
      statement is scheduled for August 10, 2007 at 9:00 a.m., local time, at 
      SBE’s corporate headquarters located at 4000 
      Executive Parkway, Suite 200, San Ramon, California, 94583.
    
    
      SBE stockholders of record as of July 3, 2007 are entitled to vote at 
      the special meeting. Stockholders entitled to vote at the special 
      meeting may also vote by mail, telephone or via the Internet by 
      following instructions included in the proxy statement and printed on 
      the proxy card or by following the directions provided by their 
      individual broker dealer firm that accompanies the proxy statement. The 
      failure to vote or abstaining from voting will have the same effect as a 
      vote against the merger agreement and other proposals.
    
    
      Upon closing the merger transaction, each outstanding share of Neonode, 
      Inc. common stock will be converted into the right to receive 3.5319 
      shares of SBE common stock, subject to adjustment for stock splits, 
      combinations, reclassifications, reorganizations or similar corporate 
      transactions.
    
    
      About SBE
    
    
      SBE designs and provides IP-based storage networking solutions for an 
      extensive range of business critical applications, including back-up and 
      disaster recovery. SBE delivers a portfolio of scalable, standards-based 
      software products designed to enable optimal performance and rapid 
      deployment across a wide range of next-generation storage systems. Based 
      in San Ramon, California, SBE is a publicly traded company 
      (NASDAQ:SBEI). More information is available at www.sbei.com.
    
    
      SBE and the SBE logo are registered trademarks of SBE, Inc.
    
    
      About Neonode
    
    
      Neonode was founded in 2001 and is a Swedish developer of mobile 
      devices. The mobile devices are based on patented technologies which 
      enable a unique user experience. After the merger with SBE, the combined 
      company's headquarters will be in Stockholm, Sweden, where Neonode's 
      current corporate headquarters is located. More information is available 
      at www.neonode.com.
    
    
      Forward-Looking Statements
    
    
      This news release contains certain forward-looking statements that 
      involve risks and uncertainties, including statements about consummation 
      of the proposed merger transaction. 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 SBE and 
      Neonode to comply with the closing conditions necessary in order to 
      consummate the transactions. 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.