SBEI Sbe (MM)

SBE, Inc. (Nasdaq:SBEI), today announced that it has received a letter from The Nasdaq Stock Market ("Nasdaq") notifying the Company that it has regained compliance with Nasdaq Marketplace Rule 4210(c)(4), which contains the $1.00 minimum bid price per share requirement and with Marketplace Rule 4310(c)(2)(B), which requires the company to maintain minimum stockholders� equity of $2.5 million, or $35.0 million market value of listed securities, or $500,000 of net income from continuing operations for the most recently completed fiscal year or two of the three most recently completed fiscal years. Previously, on January 11, 2007, the Company received a deficiency letter from Nasdaq indicating that the Company failed to comply with the minimum bid price requirement of $1.00 as required by the Marketplace Rules. During the subsequent compliance period provided under the Marketplace Rules, the closing bid price of the Company's common stock was at $1.00 per share or greater for at least 10 consecutive business days. Accordingly, the Nasdaq Staff has informed the Company that it has regained compliance with Marketplace Rule 4210(c)(4). In addition, on March 20, 2007 the Company received a deficiency letter from Nasdaq stating that the Company's failed to maintain the minimum stockholders� equity as required by the Marketplace Rules. Accordingly, the Nasdaq Staff has informed the Company that it has regained compliance with Marketplace Rule 4310(c)(2)(B). 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 hardware and software products designed to enable optimal performance and rapid deployment across a wide range of next-generation storage systems. SBE is based in San Ramon, California. SBE is a publicly traded company (NASDAQ:SBEI) with products sold worldwide through direct sales, OEMs and system integration partners. SBE signed a definitive merger agreement with Neonode, Inc. After shareholder approval of the merger, the combined company's headquarters will be in Stockholm, Sweden, where Neonode's current corporate headquarters is located. More information is available at www.sbei.com. Forward-Looking Statements This news release contains certain forward-looking statements that involve risks and uncertainties, including statements about a merger with Neonode, Inc. Such statements are only predictions and the company�s actual results may differ materially from those anticipated in these forward-looking statements. 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 Form 8-K filed with the Securities and Exchange Commission on the date hereof and the company's most recent Form 10-K and Form 10-Q. SBE and the SBE logo are registered trademarks of SBE, Inc.