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22
September 2008
ORDER FOR BASE STATIONS
xG Technology Inc, ("xG" or "the Company", LSE-AIM: XGT) the
US-based, AIM-listed communications technology business, has
received an order for 1,000 of its next generation BSN250 base
stations with a total order value of US$75M. The order also
includes an option for a further delivery of 4,000 base
stations. The option, if exercised, will have a total order
value of US$300M.
The BSN250 base stations will utilise xG's revolutionary xMax
technology which, in conjunction with the company's unique
TX60 handset, will deliver the world's first mobile VoIP
service. The service is due to begin rolling out in the US in
the fourth quarter, 2008.
The order has been placed by Treco International S. A. ("Treco").
Treco is intending to work closely with xG to deploy these
base stations in the United States in markets which either
have already been or will be sold to regional
carriers/operators. The regional carriers will then pay an
appropriate lease fee to Treco. Treco has the same beneficial
ownership as Casper Holdings Ltd ("Casper"), a 4.4%
shareholder in xG, as per Company press release dated 2
September 2008.
Initial deliveries of the base stations are expected during
the closing months of 2008 with the majority of the 1,000 base
stations order being completed during 2009.
Rick Mooers, Chairman and CEO of xG Technology, said: "This
contract with Treco brings our ambition of delivering the
world's first mobile voice and text service over the internet
a significant step closer. We firmly believe that our patented
and patent-pending technology will revolutionise the way that
consumers and business pay for their telecoms services."
ENDS
CONTACTS
xG Technology, Inc.
www.xgtechnology.com
Richard Mooers, Chairman and Chief Executive Officer +44
20-7367-8888
Roger Branton, Chief Operating Officer and Chief Financial
Officer +44 20-7367-8888
Jonas Krepp, Director of Investor Relations +44 (0)7827-444
634
Bankside +44 20-7367-8888
Steve Liebmann or Simon Bloomfield
Religare, Hichens
Harrison PLC +44 20-7588-5171
Daniel Briggs
Daniel Stewart & Company PLC +44 20-7776-6550
Simon Starr
ING Bank N.V., London Branch (Nominated Adviser) +44
20-7767-1000
Xavier Moreels or Francis Moore
ABOUT TRECO AND CASPER
The beneficial owners behind Treco and Casper have been
following xG's development for some time. Casper has a long
term holding in the shares of xG and was looking for ways to
expand its relationship with xG in order to better participate
in the opportunities offered by xG's proprietary solutions.
Neither Treco nor Casper presently have formal operations;
rather these entities are being used to meet this goal. It is
intended that the initial sales order is only the first step
in what is hoped to be a larger relationship with xG.
ABOUT XG TECHNOLOGY
Based in Florida, USA, xG Technology has developed innovative,
patented wireless communications technologies which offer the
potential to significantly reduce the required capital
investment and running 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. Planned future releases of the xMax product line
include integrated video and data applications.
This information is provided by RNS The company news service
from the London Stock Exchange
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