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04 June 2007

xG Technology, Inc.

UPDATE ON CONTINUED PROGRESS:   xMAX BASE STATION PASSES COMMERCIAL TESTING MILESTONE

xG Technology, Inc. ("xG" or "the Company"), the Florida based communications technology business, is pleased to confirm that its mobile VoIP base station has passed all the tests necessary for it to be given Federal Communication Commissions (FCC) certification.

The independent tests were conducted by the ElectroMagnetic Interference Lab based at the Florida Atlantic University. The base station passed all of the tests first time without the need for any reconfiguration. The technical specifications for the testing are in the Notes to Editors below. All commercial radio equipment is required to pass compliance testing and receive FCC certification.

Commenting on today's announcement, Joe Bobier, President of Operations and CTO, stated:

"We are delighted that the xMax base station has passed this critical milestone which is an important step in achieving successful commercialisation of our products."

Separately, xG has confirmed that in preparation for its full system deployment,  the Company is currently putting in place an extensive marketing campaign as well as a complete company-designed technical network infrastructure in support of the xMax commercial rollout.

Frank Peake, Head of Sales and Marketing, added:

"It is pleasing to see all the back office carrier operations come together for  the first network launch. The network back-end systems are on line and ready for deployment and our marketing plan is on track. Our website 'xgtechnology.com' has also been updated to contain more technical information, including details concerning our first launch and vendor relationships."

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.

NOTES TO EDITORS

Base station model VBTS915 passed Federal Communication Commissions (FCC) parts 15.207, 15.209 and 15.247 testing, all of which are necessary for FCC certification.

The Florida Atlantic University ElectroMagnetic Interference Lab was the first laboratory to be listed with FCC as in compliance with the FCC rules, Section 2.948 (Part 15, Paragraph 15.38) for acceptance of data under their Equipment Authorization procedures. The testing was conducted in a 3-meter semi-anechoic chamber. The chamber meets the Federal Communication Commission's (FCC) as well as Industry Canada's standards on site performance and all of the applicable equipment is run through a traceable calibration cycle. The chamber also meets the new ANSI C63.4 site attenuation requirements for both horizontal and vertical polarizations over a volumetric area for determining site suitability for performing radiated emission (EMI) measurements from 30 MHz to 1.0 GHz and above.

 - Ends -
 
Enquiries:

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

 


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