xG Technology Mobile Broadband Equipment To Be Deployed In Costa Rica

xMax System Will Be a Showcase for Benefits of xG's Cognitive Technology in Latin American Markets

Sarasota, FL /PRNewswire/ - xG Technology, Inc. ("xG" or the "Company") (Nasdaq: XGTI, XGTIW), a developer of wireless communications and spectrum sharing technologies, announced today that it has received an order for approximately$100,000 in xMax mobile broadband wireless equipment and services which will be deployed in a network to be initially installed in Escazu, Costa Rica, with plans to expand in other Latin American locations.

The xMax equipment order was received from Itellum, LLC ("Itellum"), one of four companies who have entered into a formal agreement to participate in the initial xMax deployment as well as expansion into other Latin American markets thereafter. The other partners include Level 3 Communications ("Level 3"), Osmin Vargas Corporacion ("OV"), and MB Technology Holdings, LLC ("MBTH"). The xMax broadband wireless networking equipment will include compact, high-performance access points, fixed and mobile personal WiFi hotspot devices and mobile control switching centers.

The goal of the network deployment is to demonstrate how xMax can effectively provide voice and data coverage to underserved and hard-to-reach markets, in addition to showcasing the benefits of xG's patented cognitive technologies, including interference mitigation, self-organizing networks and spectrum sharing.

The xMax network will be showcased as a free service to users in a specific area for the first three months. Thereafter, the parties involved have future expansion plans in Costa Rica, Central America and/or South America based on a mutually agreeable deployment plan and business model.

Tim Foss, CEO of Itellum, said, "The deployment of xMax will represent a game changing technology throughout the region. This will be the first time that cost-effective, mobile voice, texting and broadband technologies will be available to users, as well as operators and incumbents, who stand to potentially save millions or even billions of dollars in capital outlays, since xMax does not require expensive and scarce licensed frequencies."

George Schmitt, CEO and Board Chairman of xG Technology, said, "We see this initial deployment as the first step in a larger scale plan to introduce the benefits of the xMax solution to additional Latin American markets. The efficiencies we have designed into the xMax system make it an excellent fit for these markets, because xMax can deliver more bandwidth, to more people, for a lower cost than traditional wireless or wire line systems."

About xG Technology, Inc.
Founded in 2002, xG Technology has created a broad portfolio of intellectual property that makes wireless networks more intelligent, accessible, affordable and reliable. The company is the developer of xMax, a patented all-IP cognitive radio network system that enables secure, robust mobile broadband communications for private, consumer and government networks. xMax can solve the crisis facing the wireless industry caused by data-hungry devices and applications that are straining network capacity. It eliminates the need to acquire scarce and expensive licensed spectrum, thus lowering the total cost of ownership for wireless broadband access.

The xMax system delivers always-available voice, video and data services to both fixed and mobile users, and is interoperable with existing cellular and dedicated networks without being dependent on them. xMax incorporates advanced optimizing technologies that include spectrum sharing, interference mitigation, multiple-input multiple-output (MIMO) and software defined radio (SDR). These and other technologies make xMax ideal for wide area, as well as rapid emergency communication deployment in unpredictable environments and during fluid situations. xG offers solutions for numerous industries worldwide, including emergency response and public safety, military, urban and rural wireless broadband, utilities, and critical infrastructure.

Based in Sarasota, Florida, xG has over 50 U.S. and over 120 international patents and pending patent applications. xG is a publicly traded company listed on the NASDAQ Capital Market where xG common stock is traded under the symbol XGTI and xG warrants are traded under the symbol XGTIW. For more information, please visit www.xgtechnology.com.

Cautionary Statement Regarding Forward Looking Statements
Statements contained herein that are not based upon current or historical fact are forward-looking in nature and constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements reflect the Company's expectations about its future operating results, performance and opportunities that involve substantial risks and uncertainties. These statements include but are not limited to statements regarding the intended terms of the offering, closing of the offering and use of any proceeds from the offering. When used herein, the words "anticipate," "believe," "estimate," "upcoming," "plan," "target", "intend" and "expect" and similar expressions, as they relate to xG Technology, Inc., its subsidiaries, or its management, are intended to identify such forward-looking statements. These forward-looking statements are based on information currently available to the Company and are subject to a number of risks, uncertainties, and other factors that could cause the Company's actual results, performance, prospects, and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements.