xG Technology, Inc. (Nasdaq: XGTI), a leader in providing critical wireless communications for use in challenging operating environments, announced today that it has closed the previously announced public underwritten offering of securities, with gross proceeds of $10,000,000 before deducting underwriting discounts and commissions and other offering expenses payable by the Company.

The Company sold to the underwriters an aggregate of 3,800,000 Class A Units, with each Class A Unit consisting of one share of the Company's common stock and one and one quarter immediately exercisable five-year warrant, each whole warrant to purchase one share of common stock with a warrant exercise price of $2.00, and 2,400 Class B Units, with each Class B Unit consisting of one share of the Company's Series E Convertible Preferred Stock with a stated value of $1,000 and convertible into 500 shares of the Company's common stock at $2.00 per share, together with a immediately exercisable five-year warrants to purchase 625 shares of common stock, with a warrant exercise price of $2.00. The Class A Units were priced at $2.00. The Class B Units were priced at $1,000. The Company also granted the underwriters a 45-day option to purchase up to an aggregate of an additional 15% of the securities sold in the offering to cover over-allotments, if any.

The Company plans to use the net proceeds of the offering, after deducting underwriting discounts and commissions and other offering expenses payable by the Company, to fund a portion of its previously announced acquisition of Vislink Communications Systems or, if the acquisition is not consummated, for general corporate purposes.

Aegis Capital Corp. acted as sole book-running manager for the offering.

About xG Technology, Inc.

Founded in 2002, xG Technology has developed technologies that enable always-available, always-connected and always-secure voice, broadband data and video communications. The company's brand portfolio includes xMax and Integrated Microwave Technologies (IMT).