xG(R) Technology, Inc. Appoints Non Executive Director.

LONDON -- The Board of xG[R] Technology, Inc. (AIM: XGT), the Florida based communications technology business, is pleased to announce the appointment of James Woodyatt as a Non-executive Director. The appointment is effective immediately.

Ross James Woodyatt, aged 39, has over 16 years' experience in the banking and financial services industry in Switzerland. He started his career as an equity sales executive with Nomura Bank (Switzerland) SA and has held a number of broking and sales positions with institutions including Tradition SA and, most recently, Optimal Investment Services SA (a fund of hedge funds wholly owned by Grupo Santander), where he held the position of senior vice president and was a member of the management committee. Mr Woodyatt's roles have provided him with exposure to worldwide markets including Europe, the Far East and Latin America.

Mr Woodyatt co-founded Veegoo Capital Services SA in 2006, which has an active interest in assisting early stage companies in their development, using its network of contacts to introduce such companies to strategic partners and advisers. Veegoo Capital Services SA, a company of which Mr Woodyatt is also a director, has in place a non-exclusive international marketing agreement with xG Technology, Inc. which the Directors believe will assist the Company in its long term development plans.

Commenting on today's appointment, Rick Mooers, Chairman & CEO of xG Technology Inc. stated: "I am delighted to welcome James Woodyatt to the Board and believe his extensive skills and experience will make a significant contribution as we set in place our ambitious growth plans for xG. His outstanding reputation and track record reflects the calibre we are looking for in our directors."

xG is a registered trade mark of xG Technology, Inc. under US Trade Mark Registration Number 3039835. xMax is a trademark of xG Technology, Inc.

Mr Woodyatt's current and previous directorships and partnerships over the past five years are as follows:

Current                     Past

Veegoo Holding SA
Veegoo Capital Services SA  None

On his appointment, Mr. Woodyatt has a beneficial interest in 80,000 common shares of US$0.01 each in xG, equivalent to 0.07 per cent of the issued share capital of the Company. There is nothing further to disclose in relation to James Woodyatt's appointment pursuant to Rule 17 of the AIM Rules.

ABOUT XG TECHNOLOGY

XG TECHNOLOGY'S BUSINESS

Based in Florida, USA, xG Technology has developed innovative technologies that the directors believe have the potential to change the building blocks, capabilities and economics of the communications industry. Its patented technologies can be applied to almost any type of communication including voice, data or video in wired or wireless form.

xG Technology is now designing a mobile VoIP (Voice over Internet Protocol) base station and handset product line. Branded as xMax[TM], these products are intended to be sold to regional carriers (Internet service providers, competitive local exchange carriers and entrepreneurial parties) seeking to deliver mobile Internet Protocol services directly to consumers without using the incumbent circuit switched or coaxial cable networks. In time, it is intended that the xMax product line will expand from mobile VoIP to offer integrated video and data applications.

MARKET AND COMPETITION

There is a wide variety of wireless technologies in the marketplace. The Directors believe that the key issue keeping these technologies from achieving greater success is the price versus performance of existing options. xMax changes this price/performance relationship by enabling the delivery of mobile IP services with less infrastructure using low-cost and readily available unlicensed radio spectrum.

xG Technology believes that xMax will be a viable solution for mobile VoIP for a number of reasons:

* xMax is an IP solution rather than a circuit switched solution; this is a prerequisite for handling the VoIP application;

* xMax delivers high speed data in the order of Mbps rather than Kbps, which is essential for supporting large numbers of subscribers;

* xMax has a low latency physical layer, resulting in high network efficiency;

* xMax's signal profile also allows for improved range/coverage and better signal penetration, which is essential for maintaining call session reliability; and

* although this feature is not central to the VoIP application itself, xG Flash Signal's ability to deliver wireless signals with far less RF output power than conventional applications means that wireless VoIP handsets will show improved battery life over other solutions.