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27 December 2007
xG Technology, Inc.
Announces
Term Sheet With Gama Group
xG Technology, Inc. (“xG” or “the
Company”), the communications technology business, is pleased
to announce that Gama Group and their subsidiary, Vegatel,
have completed their due diligence on xG’s core physical layer
technology and its first vertical application, xMax.
Gama and xG have now entered into
a term sheet that defines the parameters for specific xMax
commercial applications in Turkey. The term sheet identifies
four major parameters of the final agreement including,
xG/Gama share of gross profits, xG market fees, Gama capital
purchases and xG applications licensed to Gama. The existing
territory agreement that is in place between the companies is
hereby extended to the end of June 2008 and both companies
will endeavour to sign a final agreement for exclusivity in
Turkey by the 30th of June.
xG Technology Inc. Chairman and
CEO Rick Mooers added:
“As our relationship with Gama
grows, we are very excited by the prospect that Turkey could
become one of our first international deployments. Our xMax
technology is very well suited to a growing telecommunications
market such as Turkey, as it offers the population
alternative, rapidly deployable, economical, low power mobile
communications.”
GAMA Trade Board Member/Managing
Director and Vegatel Chairman Ergun Alkan added:
“The Turkish telecommunication
market has a large growth potential and we believe that xMax
technology will find extensive use in Turkey. With this
relationship we will pursue opportunities in the growing
Turkish Market."
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 -
For more information, please
visit the xG Technology, Inc. website:
www.xgtechnology.com
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
ABOUT GAMA GROUP
GAMA was established
in Turkey in 1959 and has become a leading international
general contractor with operations in 17 countries extending
from Ireland in the west to Russia’s Sakhalin Island in the
east. GAMA, Successfully undertook and completed many projects
in Saudi Arabia, Russia, Turkmenistan, Uzbekistan, Azerbaijan,
Libya, Iran, Iraq, Jordan, Ukraine, Qatar, Kazakhstan, the
United Arab Emirates and Malaysia.Besides construction, GAMA’s
other core business are energy and trade. Vegatel is a growing
subsidiary of GAMA in the telecommunication industry in
Turkey.
For more
information, visit
www.GAMA.com.tr
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