NOTE | OMX STO SEK

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NOTE receives record order from Neonode

NOTE, one of Scandinavia's leading electronics manufacturers, has been selected as the volume manufacturer of the Neonode N1 mobile phone. With an order value of some SEK 200 m in 2005, this is one of NOTE's largest contracts, and means that NOTE will be responsible for everything from production to distribution.

Neonode Sweden AB has become known for its innovative multimedia phone, the Neonode N1, which challenges mobile phone giants like Sony-Ericsson and Nokia. Sales have recently started through the neonode.com webshop, and in connection with this, Neonode has chosen contract manufacturer NOTE as its partner.

"One of the reasons we decided in favour of NOTE is their professional manufacturing concept and ability to meet our cost targets using their volume plants outside Sweden," says Marcus Bäcklund, CEO of Neonode.

Sales will be managed partly via the web shop, but also directly to major customers. In both cases, N1 will be distributed directly from NOTE's plants to customers, a strategy that minimises total cost.

"Neonode has chosen an approach that is unique compared to traditional mobile phone manufacturers, but which is fully in line with our concept of being close to the customer and close to the market," says Erik Stenfors, President and CEO of NOTE.

For NOTE, this deal means another new area in the telecoms sector. Production will be managed from NOTE's plant in Norrtälje.

"Neonode has developed a completely new user interface without mechanical keys, which places extra high demands on the manufacturing process," says Martin Linder, PhD and customer manager at NOTE Norrtelje AB. "The fact that we've been able to meet these demands is due to our pronounced technology focus and our high rate of investment in recent years."

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The N1 is the first mobile phone to feature Neonode's unique, patented optical touchscreen, zForce, and user interface, Neno, which allows the user to easily use all the features that make the N1 a powerful entertainment mobile.

For further information contact:
Erik Stenfors, President and CEO, NOTE AB, +46 176 799 01 or +46 709 50 80 70
Martin Linder, Key Account Manager, NOTE Norrtelje, 0176-794 15 or 0708-73 95 35
Marcus Bäcklund, CEO Neonode, 08-678 18 50