SBEI Sbe (MM)

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.