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xG Delivers Data to Commercial Smartphones via Its xMax Cognitive Radio Solution

Demonstration Opens the Door to Everything Over Internet Protocol (EoIP) Using Free, Unlicensed Spectrum

xG, the developer of a wide portfolio of wireless communications technologies, including cognitive radio networks, is pleased to announce that it has demonstrated at its facility in Sunrise, Florida, the over the air transmission and receipt of data by off-the-shelf smartphones using xG's proprietary xMax technology. This new capability adds to xMax's proven voice and short messaging features and will enable xG to offer a single fully integrated mobile solution capable of delivering Everything over Internet Protocol (EoIP) to any IP enabled end user device.

"We are particularly proud of all the efforts by our engineers over the past months to bring this game-changing technology to fruition," said John Coleman, CEO, xG Technology. "Our next challenge will be to make a system of affordable devices for volume production. Given the milestone we have achieved, I have every confidence that our team at xG will make this happen."

"Integration of the different elements of the network and linking to normal off-the-shelf smartphones was a critical step in implementing xMax's over the air interface and validates the overall system design, hardware implementation and software development of the new product set," according to Scott Garlington, Vice President of Engineering at xG Technology. "The engineering team will now focus on performance enhancement, such as xG's proprietary interference mitigation techniques, and cost reduction efforts that will replace the high cost base station with a low cost access point, with the aim of making the xMax system commercially available later this year."

Customer demonstrations for xMax 2.0 cognitive radio systems are expected to take place in the second and third quarters of 2012 and commercial availability of xMax 2.5 is expected by the end of 2012.

ABOUT xG TECHNOLOGY

xG Technology is a leading developer of innovative and disruptive communications technologies for wireless networks. Its patented intellectual property portfolio covers a broad 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. For more information, please visit www.xgtechnology.com.