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xG Technology, Inc. Receives Estimated $4.11 Million in New Orders for xMax Broadband Network Equipment and Services From Six Rural Telecommunications Providers

SARASOTA, FL -- (Marketwire) -- 11/27/12 -- 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, is pleased to announce that it has received new purchase orders, for an estimated $4.11 million, from the following rural telecommunications providers: Electra Telephone Company and Tatum Telephone Company (both based in Texas); Choctaw Telephone Company and MoKanDial Telephone Company (both based in Kansas); Haxtun Telephone Company (based in Colorado); and Walnut Hill Telephone Company (based in Arkansas) (together, the "Providers").

The orders, in aggregate, consist of $2.85 million for xMax cognitive radio networking equipment, including xMax wireless access points, xMSC mobile switching centers and xMod personal hotspots (capable of supporting existing smartphones, tablets and laptops) and an estimated $1.26 million for engineering services and other hardware. Fulfillment of these orders will enable the Providers to offer wireless voice and advanced broadband services in their respective regulated telephone market areas.

These purchase orders follow a separate $3.28 million order for xMax broadband network equipment and services received by xG from Florida-based Northeast Florida Telephone Company, Inc. ("NEFCOM"), a provider of local phone, long distance, Internet services and telephone equipment, which was announced on September 5, 2012 (the "NEFCOM contract"). The orders arise from a previous xMax trial conducted with Townes Tele-Communications, Inc. ("Townes"), the parent company of the Providers, originally announced on March 15, 2011.

Commenting on the announcement, Larry Townes, Chairman and CEO of Townes, said: "Echoing my earlier remarks on the NEFCOM contract, I look forward to the successful deployment of xG's technology by Townes operating companies and particularly anticipate the delivery of reasonably-priced broadband services in these important rural markets as a result."

George Schmitt, xG Non-Executive Director, said: "We are very pleased to have received new orders from these Providers. This announcement provides further evidence that xMax offers a compelling wireless solution for independent telephone providers in their efforts to bring advanced, cost-effective wireless technology to unserved and underserved areas of the United States."

Under the terms of the orders and as with the NEFCOM contract, xG will be paid upon the delivery of xMax equipment to the Providers and, following FCC certification of the Radio Frequency (RF) devices, which is now expected to take place, in respect of both the NEFCOM contract and the new orders described in this announcement, in the first quarter of 2013.

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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