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Press Release


20 August 2007

xG Technology, Inc.

Industry Event; Product Demonstration

xG Technology, Inc. (AIM:XGT), the Florida based communications technology  business, is pleased to announce that xMax, the first wireless network products  to feature xG's physical layer technology, will be debuted on Sept 5th and 6th.
 
 The event, which will be attended by members of the press, industry analysts,  advisors and partners, will feature presentations from xG engineers, RF experts  and vendors involved with product development and marketing of the xMax wireless  networks. Attendees will also be given the opportunity to view and place calls  using xMax handsets over our proprietary mobile wireless network.

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.
 

   
 

xG and xMax are trademarks of xG Technology, Inc.© 2008 xG Technology, Inc. All Rights Reserved.

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