SBE and Neonode Announce Closing of Merger

  
    
  
  
    
      Neonode Inc. (formerly known as SBE, Inc.) (NASDAQ:SBEI), today 
      announced the completion of the previously announced merger of its 
      wholly-owned subsidiary, Cold Winter Acquisition Corporation, with and 
      into Neonode Inc., pursuant to which Neonode changed its name to “Cold 
      Winter, Inc.” and became a wholly-owned 
      subsidiary of the company. Following the closing of the merger 
      transaction, the company was renamed “Neonode 
      Inc.” The newly-combined company's 
      headquarters will be in Stockholm, Sweden.
    
    
      In conjunction with the close of the merger, the Company’s 
      board of directors appointed Mikael Hagman the President and Chief 
      Executive Officer and David W. Brunton the Vice President of Finance and 
      Chief Financial Officer. The board also determined that a reverse spilt 
      of the company’s common stock is not required 
      at this time.
    
    
      “We are pleased to announce the completion of 
      the merger and becoming a Nasdaq listed company. The employees of 
      Neonode are dedicated to expanding our business and enhancing value to 
      our shareholders,” said Mikael Hagman, 
      President and CEO. “We continue to work on 
      finalizing agreements with several additional partners in the European 
      market, as well as some other major markets, for distribution of our new 
      mobile phone, the Neonode N2. In addition, we are evaluating 
      opportunities to license our patented technologies to a number of 
      companies,” continued Hagman.
    
    
      The company issued approximately 20.4 million shares of its common stock 
      in exchange for 5.8 million outstanding shares of the common stock and 
      the assumption of outstanding options and warrants to purchase an 
      additional 7.9 million shares of common stock. The company’s 
      common stock is anticipated to start trading on the Nasdaq Capital 
      Market on August 13, 2007 under the new ticker symbol “NEON.”
    
    
      About Neonode
    
    
      Neonode is a company that designs, develops and sells patented 
      technologies and products focused on unique user experiences (UX). With 
      offices in Stockholm, Sweden and San Ramon, California, Neonode Inc. is 
      a publicly traded company (NASDAQ:NEON) with licenses and products sold 
      worldwide through both direct web sales and local distribution partners. 
      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 the trading 
      of the company’s common stock on the Nasdaq 
      Capital Market . 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 company’s 
      ability to satisfy the initial listing requirements of the Nasdaq 
      Capital Market and remain listed. 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.