DMC Announces Partnership Leveraging End-to-End Sales Channel Development and Supply Chain Management Expertise

Company Joins with Neonode to Form Neonode USA

New company will Market the Neonode N2 Mobile Phone and Commercialize Ground- Breaking Technologies Across a Wide Range of Consumer Products

New York, and Las Vegas, NV, January 8, 2008 - DMC Worldwide LLC announced that is has formed a strategic partnership with Neonode, Inc (NASDAQ:NEON), to bring this leading international technology company's products and cutting-edge intellectual properties to the markets in China, North and Latin America.

The partnership with Neonode to create Neonode USA will enable DMC to maximize the management team's more than 40 years of experience successfully bringing leading consumer products to the global market. DMC's team has industry leading experience across sales channel development, marketing and brand building, and supply-chain management. The company has long-standing relationships across all channels of distribution. DMC provides end-to-end product fulfillment and customer service; and unique to the supply-chain management sector, DMC is able to supply varying levels of financial support to its partners.

Through Neonode USA, DMC will globally commercialize and license the IP Technology and market the Neonode N2, a cutting edge touch-screen, multimedia mobile phone. The company will develop products which embed Neonode's leading "neon" and "Zforce" touch-screen technologies into other consumer products including global positing service (GPS) devices, mp3 players, digital photo frames, etc.

"DMC takes advantage of our full capabilities and decades of experience to lower the capital costs and shorten the speed to market for international companies looking to reach the US, China and other key markets," said Andrew Lowinger, president and chief executive officer of DMC.

Lowinger continued "The work we are doing through Neonode USA is a perfect example of how we can work with various companies, be they technology, OEM's, ODM's or brands in their own right. DMC enables companies with the ability and capacity to produce great products, the opportunity to use our capabilities to create a seamless brand experience that can increase their recurring revenue streams, while lowering the costs to market."

About Distribution Management Consolidators, LLC

Distribution Management Consolidators, LLC (DMC) is an integrated sales channel development and supply chain management company that delivers innovative end-to-end business solutions to its clients. The company brings over 40 years of experience in sales, marketing, manufacturing and brand development to help best-in-class and emerging companies become powerful competitors in the global marketplace. Through a hybrid manufacturing business model, DMC works with international product manufacturers to leverage their core manufacturing expertise and successfully penetrate the North
American and Latin American marketplace. For more information, please visit www.dmcllc.net.

CONTACT:
Lewis Goldberg/Erika Kay
KCSA Strategic Communications
212-896-1216/212-896-1208
lgoldberg@kcsa.com / ekay@kcsa.com