XG Techonology, Inc. : Order for xMax broadband equipment from Carolina Satellite Networks LLC

Monday 30 January 2012

 xG Technology, Inc.

("xG", "xG Technology" or the "Company")

 Order for xMax broadband equipment from Carolina Satellite Networks LLC, ("CSATNET")

Sarasota, Florida-30 January, 2012 - xG, the developer of a portfolio of wireless communications technologies, including cognitive radio networks, is pleased to announce that it has received an up to $1,072,000 12-month sales order from CSATNET,aVirginia-based provider of satellite and terrestrial communications systems for mission critical applications.  The order covers xMax networking equipment that includes xMax wireless access points, xMod mobile data end-user devices and mobile switching centres.  As part of the agreement a mobile switching centre will be located at a satellite teleport in CSATNET's Network Operations Centre.  This will enable the rapid deployment and emergency back-up of xMax networks designed to meet the rigorous communications requirements of military, homeland security and public safety organizations. It is expected that xG will commence delivery of its xMax networking equipment to CSATNET in the second half of 2012.

xMax represents a new approach to mobile broadband communications required by first responders.  By leveraging unlicensed spectrum via advanced cognitive networking techniques, xMax can deliver a licensed spectrum experience using unlicensed spectrum and is intended by CSATNET to offer a robust, rapidly deployable, cost-effective, carrier-class emergency network communications system to organizations using CSATNET satellite and terrestrial communications services.

"We gained valuable perspective on the impressive capability of the xG system when we integrated xMax with our satellite systems in support of the six month evaluation exercise with the US Army last year," said Brian Clark, President of CSATNET.  "This contract is intended to enable us to offer xMax as part of a complete terrestrial mobile broadband system seamlessly integrated with beyond-line-of-sight satellite connectivity.  xG's cognitive radio and enhanced interference mitigation should enable the delivery of robust end-to-end wireless bandwidth that enhances and extends the reach of commercial smartphones, tablets and laptops already in use by our customers."

The CSATNET order is the latest in a number of memoranda of understanding and purchase orders for xMax networking equipment received by xG from domestic and international communications providers.  This order is the second from companies servicing public safety and other mission critical users.

Contacts

xG Technology, Inc.	www.xgtechnology.com
John Coleman, Chief Executive Officer	[phone]
Roger Branton, Chief Financial Officer	[phone]
James Woodyatt, Investor Relations	[phone]
Allenby Capital Limited (Nominated Adviser and Broker)	www.allenbycapital.com
Nick Naylor	[phone]
Mark Connelly	[phone]
Dan Robinson	[phone]
First Columbus LLP (Joint Broker)	www.first-columbus.com
Chris Crawford	[phone]
Fusion PR (Media and Analyst Relations)
Heather Lukens	[phone]

ABOUT XG TECHNOLOGY

xG Technology is a developer of innovative and disruptive communications technologies for wireless networks. Its patented intellectual property portfolio covers a range of applications including cognitive radio networks. The Company has commercialized some of these technologies to create xMax, the World's first carrier-class cognitive radio network.

xMax's standards-based IP architecture minimizes network deployment, management and operational costs while simplifying the delivery of profitable fixed and mobile services. Using field-proven cognitive radio technology, xMax enables the delivery of these mobile services in both licensed and unlicensed bands. In its initial commercial offering, the xMax cognitive radio system enables carriers and other operators to monetize profitably the free unlicensed spectrum in the 900MHz ISM band.

xMax also offers unique capabilities to enterprises, utilities, government agencies and others who require advanced wireless communications to support business operations and mission critical applications.

xG offers turnkey xMax network solutions including base stations, mobile switching centres, network management systems, deployment tools, end-user equipment and customer support.

xG has deployed a 32 square mile xMax network in Fort Lauderdale, Florida to showcase its cognitive radio, mobile VoIP and dynamic interference mitigation capabilities. The Company's xMax products have been successfully tested and trialled by the US Army at two of its US bases. Based in the USA, xG has over 60 US and more than 130 international patents and pending patent applications..