Shmuel Rosner explains how:

Let's examine his words line by line:

1. "Israel has to work toward a two-state solution". That's in the Road Map, that Israel accepted. In fact, Netanyahu has already achieved something. if he now says he agrees to a two state solution the Obama team will be able to show some success without him giving anything that wasn't already given.

2. "not build more settlements". Israel doesn't build "more settlements". The question is whether it can build more in existing ones - to which Labor Party leader Ehud Barak just responded with a resounding yes (see here).