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xG Announces Cost Reduction InitiativesSARASOTA, Fla., Feb. 26, 2015 /PRNewswire/ -- xG Technology, Inc. ("xG" or the "Company") (Nasdaq: XGTI, XGTIW), a developer of patented wireless communications and spectrum sharing technologies, announced that, effective March 1, 2015, it will implement cost reduction initiatives that will include a decrease in the Company's current full, part-time and contracted workforce. These initiatives will result in a reduction in monthly operating expenses to approximately $800,000 — an improvement of over 30 percent. George Schmitt, CEO and Board Chairman of xG Technology, said, "These cost-cutting initiatives will reduce our costs by over 30 percent through a combination of both personnel and other expense reductions, which will right-size our operations. The reduction of staff is always painful, and we would like to express our sincere appreciation to our affected employees for their contributions to xG Technology. We are confident that we have retained an excellent team that is capable of effectively moving xG forward while maintaining our tradition of innovation and product development in cutting-edge wireless solutions." The Company also announced that it has secured $1.8 million in new funding through the execution of a stock purchase agreement with institutional investors, pursuant to the Company's current shelf registration statement. Mr. Schmitt commented, "These two actions are intended to provide a sharp decrease in monthly cash burn while strengthening our ability to keep driving toward our expectations. We remain committed to aggressively executing on opportunities that offer us excellent potential for producing near-term revenue – particularly in the first responder, public safety, military and rural telco markets – that can leverage our unique ability to deliver high-reliability, rapid-deployment, interference-resistant networks." About xG Technology xG Technology has created a broad portfolio of intellectual property that makes wireless networks more intelligent, accessible, affordable and reliable. The company has created xMax, a patented all-IP cognitive radio technology that enables 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. xG's goal is to help wireless broadband networks deliver voice, video and data services to fixed and mobile users. The xMax cognitive radio system 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. xG offers solutions for numerous industries worldwide, including urban and rural wireless broadband, utilities, defense, emergency response and public safety. Based in Sarasota, Florida, xG has 60 U.S. and over 130 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. For More Information: Media Relations Investor and Analyst Relations Jody Burfening/Carolyn Capaccio To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/xg-announces-cost-reduction-initiatives-300042321.html SOURCE xG Technology, Inc. 
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