xG Technology Wins Spectrum Sharing Prototype Award from Defense Information Systems Agency

10/3/16

xG Technology, Inc. (Nasdaq: XGTI, XGTIW), a developer of robust and resilient wireless communications and spectrum sharing technologies, announced that, together with partner Southwest Research Institute® ("SwRI®"), it has received a $3.0M award issued by the Defense Information Systems Agency for Prototype Spectrum Sharing Systems for the 2025-2110 MHz Band.

xG will perform a significant portion of the project, and the award represents a significant milestone in the application of xG's highly unique core technology to Government efforts to permit spectrum sharing between certain government and commercial applications. Government initiatives in spectrum sharing have been identified by xG as a key strategic focus.

John Coleman, President of xG's Federal Business Unit, said, "xG's unique knowledge and expertise in the arenas of spectrum sharing and interference mitigation, together with the Electronic News Gathering (ENG) market leadership of our business unit IMT, make us exceptionally well-positioned to deliver innovation and value in this effort as part of the Southwest Research Institute team. xG believes it can make important contributions to more efficient use of America's valuable spectrum through spectrum sharing technologies."

In January 2015, the U.S. government concluded an auction of the 1755-1780 MHz Federal use radio frequency spectrum to Advanced Wireless Services licensees. As part of the auction, some DOD systems are relocating operations into the 2025-2110 MHz region of the spectrum, where they will share that spectrum with ENG operations. The overall objective of this Initiative is to develop a prototype architecture and associated set of concept of operations (CONOPS) and Use Case (UC) materials for a dynamic spectrum sharing system for DOD operations transitioning into the 2025-2110 MHz band and incumbent ENG services. This prototype architecture and documentation will be used to accelerate development of the production sharing system under the DISA transition plan. It is expected that radios operating in this band in the future will adopt the innovative technologies and systems developed under the transition plan to optimize spectrum sharing and co-use.

About xG Technology, Inc.

Founded in 2002, xG Technology has created a broad portfolio of intellectual property that enables always-available, always-connected and always-secure voice, broadband data and video communications. The company is the developer of xMax, a patented all-IP software-defined cognitive radio network that delivers mission-assured wireless connectivity in any RF environment. xMax provides a solution to the challenges of interoperability, survivability and flexibility in expeditionary and critical communications networks. xMax can be deployed as fixed or mobile infrastructure to enhance and integrate seamlessly with legacy communications systems, both private and commercial. Access and priority can be controlled, and in the event of congestion, failure or denial of access to commercial networks, xMax provides a fully secure, scalable, private and highly resilient network for essential communications – all at zero bandwidth cost.

xMax incorporates advanced optimizing technologies that include spectrum sharing, interference mitigation, multiple-input multiple-output (MIMO) and software defined radio (SDR). These and other technologies make xMax ideal for wide area, as well as rapid emergency communication deployment in unpredictable environments and during fluid situations. xG offers solutions for numerous industries worldwide, including military, emergency response and public safety, telemedicine, urban and rural wireless broadband, utilities, and critical infrastructure.

xG's Integrated Microwave Technologies (IMT) business unit further supports xG's military and public safety customers with its mission-critical wireless video solutions. IMT is a leader in advanced digital microwave systems and a provider of engineering, integration, installation and commissioning services serving the MAG (Military, Aerospace & Government), broadcast, and sports & entertainment markets. IMT's product lines include digital broadcast microwave video systems and compact microwave video equipment for licensed and license-free applications. More information on IMT can be found at www.imt-solutions.com.

Based in Sarasota, Florida, xG has over 100 patents and pending patent applications. xG is a publicly traded company listed on the NASDAQ Capital Market (symbol: XGTI) For more information, please visitwww.xgtechnology.com

About Southwest Research Institute (SwRI)

Southwest Research Institute (SwRI), headquartered in San Antonio, Texas, is one of the oldest and largest independent, nonprofit, applied research and development organizations in the United States. SwRI's technical divisions offer a wide range of technical expertise and services in such areas as chemistry, space science, nondestructive evaluation, automation, engine design, mechanical engineering, electronics and more. The Institute occupies more than 1,200 acres and provides more than 2 million square feet of laboratories, test facilities, workshops and offices. In 2015, SwRI sponsored more than $7.2 million in internal research to develop innovative technologies that ultimately benefit clients.

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