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Press Release


28 November 2007

xG Technology, Inc.

Announces First Phase of xMax Network Launch

xG Technology, Inc. ("xG" or the "Company"), the Florida based communications technology business, is pleased to announce that the first xMax base station and antennas have been installed in its first commercial market in Daytona Beach, Florida. This signifies the formal launch of xG's initial United States network roll-out. As part of the launch, successful wireless calls are being made, and the Company is in the process of networking additional towers and ramping up network capacity.
 
In these early stages of the launch, the Company is continuing to pay particular attention to the quality of service for voice, as it remains the Company's priority to ensure superior call quality for the end user. The first soft launch customers will begin populating the network shortly in anticipation of the retail launch of the xMax service in Daytona Beach, Florida.
 
xG Technology Inc. Chairman and CEO Rick Mooers added:
 
"I am extremely excited to see our technology being successfully deployed in what is just our first vertical market. What is most satisfying is the fact that this is simply the first application in our first market.  We still have a world of opportunities open to us; however, we knew we had to first focus on one market and one application.  Given the large market which will benefit from our technical solutions which enable longer range, more power efficient communications, we are now afforded the occasion to address the multiple other opportunities, both wired and wireless, which have presented themselves to us, domestically in the US as well as internationally."
 

xG is a registered trade mark of xG Technology, Inc. under US Trade Mark  Registration Number 3039835. xMax is a trademark of xG Technology, Inc.
 
 - Ends -
 
For network images and more information, please visit the xG Technology website:
www.xgtechnology.com

Enquiries:

Rick Mooers, Chairman and CEO
Roger Branton, COO and CFO
020 7638 9571
 
Nigel Daly/James Steel
Piper Jaffray Ltd.
020 3142 8700
 
Seb Hoyle
Lucie Holloway
Citigate Dewe Rogerson
020 7638 9571
 
ABOUT XG TECHNOLOGY
 
XG TECHNOLOGY'S BUSINESS
 
Based in Florida, USA, xG Technology has developed innovative technologies that the directors believe can change the building blocks, capabilities and economics of the communications industry. Its patented technologies can be applied to almost any type of communication including voice, data or video in wired or wireless form.
 
As its first vertical application, xG Technology has designed a mobile VoIP (Voice over Internet Protocol) base station and handset product line. Branded as xMax, these products are for use by regional carriers (internet service providers, competitive local exchange carriers and entrepreneurial parties) seeking to deliver mobile Internet Protocol services directly to consumers without using the incumbent circuit switched or coaxial cable networks. Future releases of the xMax product line will expand from mobile VoIP to offer integrated video and data applications.
 
MARKET AND COMPETITION
 
There is a wide variety of wireless technologies in the marketplace. The  Directors believe that the key issue keeping these technologies from achieving greater success is the price versus performance of existing options. xMax changes this price/performance relationship by enabling the delivery of mobile IP services with less infrastructure using low-cost and readily available unlicensed radio spectrum.
 
xG Technology believes that xMax is a viable solution for mobile VoIP for a  number of reasons:
     
     -    xMax is an IP solution rather than a circuit switched solution; this
          is a prerequisite for handling the VoIP application;
     -    xMax delivers high speed data in the order of Mbps rather than Kbps,
          which is essential for supporting large numbers of subscribers;
     -    xMax has a low latency physical layer, resulting in high network
          efficiency;
     -    xMax's signal profile also allows for improved range/coverage and
          better signal penetration, which is essential for maintaining call 
          session reliability; and
     -    although this feature is not central to the VoIP application itself,
          xG Flash Signal's ability to deliver wireless signals with far less 
          RF output power than conventional applications means that wireless 
          VoIP handsets will show improved battery life over other solutions.

   
 

xG, xMax, and xG Flash Signal are trademarks of xG Technology, Inc.  Copyright 2003-2007, All Rights Reserved.

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