xG Technology Inc. Re Contract (6420Q)

TIDMXGT TIDMXGTU

RNS Number : 6420Q

xG Technology Inc.

16 October 2013

October 16, 2013

xG Technology, Inc.

("xG", "xG Technology" or the "Company")

xG Technology Ships World's First Comprehensive Cognitive Radio System

To Walnut Hill Telephone Company

Represents First Fulfilled Delivery of xMax Broadband Networking Equipment and Services

xG Technology (Nasdaq: XGTI, XGTIW; AIM: XGTU.L, XGT.L), a developer of wireless communications and spectrum sharing technologies, has completed the first delivery of its xMax comprehensive cognitive radio system, shipping all equipment required to fulfill the $155,000 purchase order that was received from rural broadband provider Walnut Hill Telephone Company on November 26, 2012.

The order was conditional upon FCC equipment certification, which has been received as announced on October 7, 2013. The shipment includes six xMax xAP Access Points, 48 xMod Mobile Hotspot devices and one xMSC Mobile Switching Center. This order is the first of the previously announced $35 million xMax network equipment and services backlog to be completed.

"The development of rural broadband is a priority for rural telephone companies. FCC policies, however, have had the result of making cost recovery for broadband networks more difficult," said Larry Townes, Chairman of Townes Tele-Communications, Inc., parent company of Walnut Hill Telephone Company. "Technological innovation is thus a key to addressing this deployment challenge and unintended policy consequences. Townes Tele-Communications is glad to be part of this effort."

"We are extremely proud to announce that we have now completed assembly, testing and shipment of our first order against our backlog. In completing Walnut Hill's xMax network equipment order, we have achieved the significant milestone of officially commencing delivery of the first truly cognitive, spectrum sharing radio system deployed for rural broadband services in the country," said John Coleman, CEO of xG Technology. "We look forward to working closely with Walnut Hill to help their customers experience the benefits of the xMax system, and to working to fill additional orders from our backlog."

xMax is a comprehensive fixed and mobile broadband solution that is designed for rapid deployment and low operating costs. It offers a carrier-grade user experience and can serve as a network backbone or last-mile solution in a number of markets and applications. xMax leverages software defined radio (SDR) and cognitive networking technology that enables efficient sharing of both licensed and unlicensed spectrum.

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Contacts

 
 xG Technology, Inc.                www.xgtechnology.com 
 John Coleman, Chief Executive 
  Officer                           [phone] 
 Roger Branton, Chief Financial 
  Officer                           [phone] 
 James Woodyatt, Investor 
  Relations                         [phone] 
 
 Allenby Capital Limited            www.allenbycapital.com 
 (Nominated Adviser and Joint 
  Broker) 
 Nick Naylor                        [phone] 
 Mark Connelly                      [phone] 
 
 First Columbus LLP (Joint          www.first-columbus.com 
  Broker) 
 Chris Crawford                     [phone] 
 
 Fusion PR (Media and Analyst       www.fusionpr.com 
  Relations) 
 David Worthington                  [phone] 
 
 LHA (Investor Relations)           www.lhai.com 
 Jody Burfening/Carolyn Capaccio    [phone] 
 

ABOUT xG TECHNOLOGY

xG Technology develops a broad portfolio of intellectual property to make wireless networks more intelligent, accessible, affordable and reliable. The company has created xMax, a patented all-IP cognitive radio technology that enables spectrum sharing. xMax can solve the crisis facing the wireless industry caused by data-hungry devices and applications that are straining network capacity. It eliminates the need to acquire scarce and expensive licensed spectrum, thus lowering the total cost of ownership for wireless broadband access. xG's goal is to help wireless broadband network operators make more efficient use of their spectrum allocations and to create new opportunities for innovation in unlicensed spectrum. The xMax cognitive radio system incorporates advanced optimizing technologies that include spectrum sharing and interference mitigation. xG offers solutions for numerous industries worldwide, including urban and rural wireless broadband, utilities, defense, emergency response and public safety.

Based in Sarasota, Florida, xG has over 60 U.S. and over 140 international patents and pending patent applications, and its technology is available for licensing in both domestic and foreign markets. xG is a publicly traded company listed on the NASDAQ Capital Market and on the London Stock Exchange's Alternative Investment Market (AIM). On the NASDAQ, xG common stock is traded under the symbol XGTI and xG warrants are traded under the symbol XGTIW. On the AIM, xG's unrestricted shares trade under the stock symbol XGTU.L and xG's restricted 'Reg S' shares trade under the stock symbol XGT.L. For more information, please visit www.xgtechnology.com.

Cautionary Statement Regarding Forward Looking Statements

Statements contained herein that are not based upon current or historical fact are forward-looking in nature and constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements reflect the Company's expectations about its future operating results, performance and opportunities that involve substantial risks and uncertainties. These statements include but are not limited to statements regarding the intended terms of the offering, closing of the offering and use of any proceeds from the offering. When used herein, the words "anticipate," "believe," "estimate," "upcoming," "plan," "target", "intend" and "expect" and similar expressions, as they relate to xG Technology, Inc., its subsidiaries, or its management, are intended to identify such forward-looking statements. These forward-looking statements are based on information currently available to the Company and are subject to a number of risks, uncertainties, and other factors that could cause the Company's actual results, performance, prospects, and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements.

This information is provided by RNS

The company news service from the London Stock Exchange

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