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Media Advisory: xG Technology Comments on FCC Announcement That It Will Implement Key Recommendations of the PCAST Spectrum Sharing Report by the End of 2012


September 14, 2012 - Sarasota, FL

xG® Technology, Inc. ("xG" or the "Company") (AIM: XGTU.L) (AIM: XGT.L), the developer of a portfolio of wireless communications technologies, including cognitive radio networks, supports the FCC's announcement that by the end of 2012 it will initiate formal steps to implement key recommendations of the President's Council of Advisors on Science and Technology (PCAST) spectrum sharing report released in June of this year.

FCC Chairman Julius Genachowski joined PCAST members Eric Schmidt (Executive Chairman of Google) and Mark Gorenberg (a Managing Director of the software investment firm Hummer Winblad Venture Partners) at Stanford University. The Chairman announced that the FCC will, by the end of the year, initiate formal steps to implement the key recommendations of the PCAST report, including small cell use in the 3.5 GHz band. He continued to note that freeing up spectrum in this band will add 100 megahertz to the United States wireless broadband networks.

"We applaud the FCC and PCAST members' support for implementing key spectrum sharing recommendations found in the report. We welcome the opportunity to apply our xMax cognitive radio innovations to the capacity challenges that many industries are facing when trying to grow their mobile broadband services," said John Coleman, chief executive officer of xG. "We have designed and optimized our xMax cognitive radio solution for reliable operation in shared spectrum bands as envisioned in the report. We are also committed to demonstrating our technology to the FCC so that they can see how their bold initiatives in spectrum sharing can have an immediate impact on the looming spectrum shortage."

Genachowski is quoted in the release as saying, "Today, I announce the FCC will initiate formal steps by the end of the year to implement key recommendations of the President's Council of Advisors on Science and Technology report around freeing up spectrum in the 3.5 GHz band. This action will represent a major innovation in spectrum policy that will in turn enable innovations in wireless applications throughout the economy, including energy, healthcare, education, and other uses yet to be discovered."

"This announcement represents a breakthrough in the regulatory framework and thinking surrounding spectrum utilization that has been a long time coming," said Jack Grubman, telecom and technology industry veteran and a Director of MBTH, the parent company of xG Technology. "The spectrum crisis is a serious issue facing all wireless network operators and will only become more pronounced with increased proliferation of smart wireless devices. Implementation of spectrum sharing is a big step in helping solve this problem. Innovative companies such as xG are creating commercial technology to make spectrum sharing a viable game-changer that the whole wireless ecosystem will benefit from.

The implementation of these spectrum sharing initiatives would create new opportunities for xG. The adoption of cognitive radio technologies like xMax could lead to a dramatic increase in spectrum efficiency, which was the overriding goal of the PCAST report. The new frequencies, along with xMax's advanced mobile broadband capabilities, will help ensure that consumer, commercial and government users of wireless systems will have access to new wireless connectivity in time to meet growing demand. It would also provide new mobile operators, particularly those in rural and underserved markets, with an alternative to deploying systems that previously required dedicated licensed spectrum.

ABOUT xG TECHNOLOGY

xG Technology is a leading developer of innovative and disruptive communications technologies for wireless networks. Its patented intellectual property portfolio covers a broad range of applications, including smart wireless networks that can help address the global wireless spectrum crisis through advanced technology. xG is commercializing some of these technologies to create xMax, the world's first carrier-class cognitive (i.e. smart) radio network. The Company's technology provides ways to significantly increase the efficient use of spectrum, allowing network operators to offload existing voice or data traffic, reduce dropped calls, and enhance network capacity for their customers. xMax's standards-based IP architecture minimizes network deployment, management and operational costs while simplifying the delivery of high quality fixed and mobile voice and data services. xMax can enhance and extend any wireless network, and provides an economical last mile solution for hard to reach customers and devices. Using field-proven technology, xMax enables the delivery of mobile broadband services to consumers, agencies and enterprises worldwide in both licensed and free unlicensed bands. Based in the USA, xG has over 60 US and more than 140 international patents and pending patent applications. xG's intellectual property is available for licensing in domestic and international markets. For more information, please visit www.xgtechnology.com.

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