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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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