[October 05, 2010]

xG Technology Awarded Contract to Deploy xMax Cognitive Cellular Network for U.S. Army's Base at Fort Bliss, Texas

xG® Technology, Inc. (LSE-AIM: XGT, "xG" or the "Company"), the developer of a broad portfolio of wired and wireless communications technologies, including cognitive radio networks, today announced it was awarded a contract to deploy an xMax cognitive cellular network that will provide mobile communications services over a large part of the U.S. Army's Fort Bliss Desert Training areas. Located in Texas and New Mexico, Fort Bliss is the U.S. Army's largest training facility and a leading center for the testing of new weapons and communications systems. The xMax trial is being jointly sponsored by the U.S. Army Signal Center of Excellence and CERDEC.

"xG brings a capability we have not seen in any other products available today, especially in a cellular form factor," said Lieutenant Colonel John Moelter, Chief of Integrations, U.S. Army Signal Center of Excellence, Fort Gordon, Georgia. "As we develop new technologies for the Army, one of our biggest challenges will always be spectrum availability. Dynamic Spectrum (News - Alert) Access (DSA), like the xMax capability, appears to be an efficient means of solving these spectrum issues."

In addition to the Fort Bliss network deployment, the contract calls for xG to supply xMax network equipment for evaluation purposes to the Fort Monmouth, New Jersey lab facility of CERDEC.

CERDEC is the leading supplier of advanced Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) capabilities, technologies and integrated solutions for warfighters. CERDEC is also responsible for the transition of communications electronics technologies from research and development to U.S. Army and Department of Defense acquisition programs for procurement, fielding and sustainment.

"The U.S. Army's CERDEC is constantly evaluating new wireless technologies, and the fact that they believe that cognitive radio techniques have now matured enough to be considered as a viable option is not only good news for xG Technology (News - Alert), but also for better management of spectrum for all wireless customers moving forward," said Andrew Seybold, CEO and Principal Analyst of Andrew Seybold, Inc.

Under the terms of the contract, xG will install a comprehensive xMax network solution consisting of several xMax BSN-250 base stations, an xMSC mobile switching center and trial TX-70 handsets to allow the Army to utilize and evaluate xMax's capabilities as a wide-area and tactical cellular system at Fort Bliss. xG will provide training and ongoing maintenance support after the initial setup of the network to ensure seamless transition of operational responsibilities to Army support staff.

"The deployment of xMax at Fort Bliss will inform the Army community on the realm of possibilities as we continue to develop an Army deployable cellular capability," added Lt. Col. Moelter.

"We are honored that the Army has chosen to deploy and further evaluate the capabilities of our xMax cognitive radio network at Fort Bliss and Fort Monmouth," said John Coleman, Colonel USMC (Ret.) and COO of xG Technology. "xMax's all-IP architecture uniquely addresses an urgent need for the delivery of mobile, scalable, frequency-agile and cost-efficient cellular systems for both garrison and tactical use. It meets multiple unfilled requirements for reliable and robust communications in a hand-held form factor - at the lowest tactical level, including when on-the-move."

ABOUT XG TECHNOLOGY

xG Technology is a leading developer of innovative and disruptive communications technologies for both wired and wireless networks. Its extensive 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 revenue-generating mobile services in both licensed and unlicensed bands. In its initial commercial offering, the xMax cognitive radio system enables carriers and other operators to profitably monetize 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 Technology offers turnkey xMax network solutions including base stations, mobile switching centers, network management systems, deployment tools, handsets and customer support.

To demonstrate its game-changing products and technologies, 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. Based in Florida, United States, xG Technology has over 50 US and more than 100 international patents and pending patent applications. For more information, please visit www.xgtechnology.com.

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