xG Technology, Inc. | News

News

Press Release

21 December 2007

xG Technology, Inc.

Announces Agreement Extension with National Grid Wireless

xG Technology, Inc. (“xG”), the communications technology business, is pleased to announce that National Grid Wireless (“NGW”) have completed the main part of their due diligence on xG’s core physical layer technology and it’s first vertical application, xMax.

NGW have now requested an extension of the territory agreement that is in place between the companies. The extension will be until end of March 2008 and will allow NGW to consider commercial applications for xG’s proprietary technology. Before the end of the extended period, the companies will endeavor to agree to a term sheet outlining their future collaboration.

xG Technology Inc. Chairman and CEO Rick Mooers added:
“We are very happy to be moving to the next stage with National Grid Wireless. We now look forward to exploring the most suitable application for a mutual collaboration with National Grid Wireless, either with our existing mobile VoIP vertical or a new one.”

xG is a registered trade mark of xG Technology, Inc. under US Trade Mark Registration Number 3039835. xMax is a trademark of xG Technology, Inc.

- Ends –

Enquiries:

Rick Mooers, Chairman and CEO
Roger Branton, COO and CFO
020 7638 9571

Nigel Daly/James Steel
Piper Jaffray Ltd.
020 3142 8700

Seb Hoyle
Lucie Holloway
Citigate Dewe Rogerson
020 7638 9571

ABOUT XG TECHNOLOGY

XG TECHNOLOGY'S BUSINESS

Based in Florida, USA, xG Technology has developed innovative technologies that the directors believe can change the building blocks, capabilities and economics of the communications industry. Its patented technologies can be applied to almost any type of communication including voice, data or video in wired or wireless form.

As its first vertical application, xG Technology has designed a mobile VoIP (Voice over Internet Protocol) base station and handset product line. Branded as xMax, these products are for use by regional carriers (internet service providers, competitive local exchange carriers and entrepreneurial parties) seeking to deliver mobile Internet Protocol services directly to consumers without using the incumbent circuit switched or coaxial cable networks. Future releases of the xMax product line will expand from mobile VoIP to offer integrated video and data applications.

MARKET AND COMPETITION

There is a wide variety of wireless technologies in the marketplace. The Directors believe that the key issue keeping these technologies from achieving greater success is the price versus performance of existing options. xMax changes this price/performance relationship by enabling the delivery of mobile IP services with less infrastructure using low-cost and readily available unlicensed radio spectrum.

xG Technology believes that xMax is a viable solution for mobile VoIP for a number of reasons:

     -    xMax is an IP solution rather than a circuit switched solution; this
          is a prerequisite for handling the VoIP application;
     -    xMax delivers high speed data in the order of Mbps rather than Kbps,
          which is essential for supporting large numbers of subscribers;
     -    xMax has a low latency physical layer, resulting in high network
          efficiency;
     -    xMax's signal profile also allows for improved range/coverage and
          better signal penetration, which is essential for maintaining call
          session reliability; and
     -    although this feature is not central to the VoIP application itself,
          xG Flash Signal's ability to deliver wireless signals with far less
          RF output power than conventional applications means that wireless
          VoIP handsets will show improved battery life over other solutions