xG Technology, Inc. | News

19 January 2009

XG TECHNOLOGY YEAR END OPERATIONAL UPDATE

xG Technology, Inc. ("xG" or "the Company"; LSE-AIM: XGT), which has developed a revolutionary, low-cost mobile communications system, is pleased to announce base station sales of 177 units for the second half of 2008, which represented an 18% increase over the 150 base stations sold in the first half.

The deployment of our xMax mobile VoIP service in the southern Florida market continues to progress well.

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 Ben Way	+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, USA, 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 carriers (internet service providers, competitive local exchange carriers and entrepreneurial parties) 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.