xG Technology, Inc. | News

17 April 2009

Director Increases Equity Position

xG Technology, Inc. ("xG" or the "Company") was notified on 16 April 2009 that Mats Wennberg, a Non-Executive Director of the Company, purchased in the market 20,000 Common Shares in the Company on 16 April at a price of 1.15 US Dollars per share. Following this transaction, Mats Wennberg's total beneficial holding in xG, privately and through his wholly owned company, is 2,620,000 Common Shares, representing approximately 1.99% of the total issued share capital of the Company.

Contacts

xG Technology, Inc. Richard Mooers, Chairman and Chief Executive Officer Roger Branton, Chief Operating Officer and Chief Financial Officer Jonas Krepp, Director of Investor Relations	www.xgtechnology.com +44 20-7429-6666 +44 20-7429-6666 +44 78-2744-4634

Conduit PR Charlie Geller or Jos Simson	+44 20-7429-6666

Religăre, Hichens Harrison PLC Daniel Briggs	+44 20-7588-5171

Daniel Stewart & Company PLC Simon Starr	+44 20-7776-6550

ING Bank N.V., London Branch (Nominated Adviser) Xavier Moreels or Ali Awan	+44 20-7767-1000

ABOUT XG TECHNOLOGY

Based in Florida, United States, xG Technology, Inc. has developed innovative, patented wireless communications technologies which offer the potential to significantly reduce the required capital investment and operating costs of wireless voice and data communications services. Its mobile VoIP (Voice over Internet Protocol) base station and handset product line - branded as xMax - is intended for use by regional carrier partners which seek to deliver mobile Internet Protocol voice and data services directly to consumers without using the incumbent circuit switched or coaxial cable networks. The xMax system provides an extended range of operation and is expected to provide superior handset battery performance and double the call capacity of mobile WiMAX networks. Planned future releases of the xMax product line include integrated video and data applications.