xG Technology Successfully Demonstrates High Quality Mobile Broadband Connection

SARASOTA, Fla., May 10, 2012 /PRNewswire/ -- xG Technology, the developer of a portfolio of wireless communications technologies, including cognitive radio networks, announced today the successful demonstration of the latest version of its next-generation xMax wireless broadband system. The xMax 2.0 system delivered wireless data at broadband speeds to a group of rural telco executives' smartphones and laptops while they were traveling in a moving vehicle near xG's Fort Lauderdale facilities.  Users were able to seamlessly access the Internet through the xMax system without using a commercial cellular connection or using any capacity from their cellular data plans.

"Independent telecom operators need to have a cost-effective and high-performance wireless capability if they are to remain relevant to today's consumers, who are demanding more mobile broadband connectivity and services in rural markets," said Townes Tele-Communications, Inc. ("Townes") Chief Executive Officer, Larry Townes, one of the executives present for the demonstration. "I was impressed by xG's progress, as well as the capabilities xG was able to deliver to my smartphone without using any of my cellular minutes or data allotment.  My managers like that xMax will allow them to deliver new services to their customers' existing mobile devices."

Townes recently completed xMax network trials in its Lewisville, Ark., market, as well as in one of its other rural markets in MacClenny, Fla. xG has also signed memoranda of understanding with additional independent telecommunications carriers to conduct deployment trials once sufficient quantities of the new generation of xMax equipment becomes available.

The xMax equipment demonstrated has application across a range of wireless markets since the system is able to deliver a broadband connection using free, unlicensed spectrum. The frequencies used in the demonstration were crowded and had significant interference; however, xG's newly developed multi-antenna technology was able to deliver increased range and connection reliability even under these harsh conditions. 

"These results have confirmed the performance predicted by the detailed propagation simulation models developed by xG's engineering team," said Scott Garlington, Engineering VP at xG.  "We continue to make steady progress in the integration and commercialization of our IP portfolio and it is great to see that the system is living up to our high expectations."

These new broadband data capabilities build upon xMax's proven voice and 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. Customer demonstrations for xMax cognitive radio systems are expected to accelerate throughout the remainder of the second and third quarters of 2012, with commercial availability of xMax expected in early 2013.

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 smart wireless networks that can help address the looming global spectrum shortage.  The Company is commercializing some of these technologies to create xMax, the world's first carrier-class cognitive (i.e. smart) radio network. xMax's standards-based IP architecture minimizes network deployment, management and operational costs while simplifying the delivery of fixed and mobile services.  Using field-proven technology, xMax enables the delivery of mobile broadband services in both licensed and unlicensed bands.  xMax enables carriers and other wireless network operators to utilize and monetize free unlicensed spectrum to deliver high quality voice and data services.  Based in the U.S., xG has more than 60 U.S. and more than 130 international patents and pending patent applications.  For more information, please visit www.xgtechnology.com.

Contacts

xG Technology, Inc.

www.xgtechnology.com

John Coleman, Chief Executive Officer, +1 212 651 4219

Roger Branton, Chief Financial Officer, +1 212 651 4219

James Woodyatt, Investor Relations, +1 954 572 0395

SOURCE xG Technology, Inc.