xG(R) Technology Announces Nationwide Deployment Program of Mobile VoIP; Company to Award Exclusive Territories for Regional Carriers Throughout the United States.

SARASOTA, Fla. -- xG(R) Technology, LLC today announced the launch of a nationwide deployment program of xMax(TM), the first ever mobile Voice over IP (VoIP) service. Starting today, the company is accepting applications for its xMax Domestic Dealer Program and will award exclusive territories to regional carriers for deployment of mobile VoIP services. The first systems will be online in the first quarter of 2007.

"xMax provides an unprecedented opportunity for regional ISPs, CLECs, local communications carriers and entrepreneurs by reducing the cost of deploying wireless broadband to the point where they can compete with traditional communications companies," said Rick Mooers, Chairman and CEO of xG Technology. "With xG Technology, an xMax regional carrier could deliver a carrier-grade quality mobile VoIP service for thousands of dollars, not the millions that other technologies require in capital network and spectrum licensing costs."

Leveraging xG Technology's patented technology, xMax delivers the industry's first true mobile VoIP with unsurpassed speed, reach and ease of deployment. By using unlicensed wireless spectrum, xMax eliminates the need for multi-million dollar licensed airwaves and, on average, delivers three times the range of other wireless technologies with comparable power and antenna height.

The xMax Domestic Dealer Program presents regional service providers with the opportunity to deploy a city-wide mobile VoIP service to subscribers with lower cost, higher quality, and greater coverage than existing technologies that are limited to hotspot coverage only. "Preliminary response has been tremendous," said Frank Peake, head of Sales and Marketing. "Competitive providers that are interested in reaching their customers directly rather than relying on incumbent providers' networks have shown particular interest in locking up exclusive territories."

By curbing the expensive start-up and operational costs typically associated with the communications industry, xMax provides for the first all-IP networks to be built economically and profitably from the ground up. In addition, the xMax system will in time expand from mobile VoIP to mobile broadband.

Mooers added, "With our program, xG Technology will be rolling out xMax on a region-by-region basis with the end goal of a ubiquitous xMax mobile VoIP service across the U.S."

About xMax Domestic Dealer Program

xG Technology provides its dealers with a comprehensive mobile VoIP carrier model.

Key features of the program include:

--Low network deployment costs;

--Exclusive territories;

--Wireless IP service independent of the PSTN and cable networks;

--Affiliation with a national brand; and

--Comprehensive marketing and distribution support.

To request an exclusive territory application, please visit www.xgtechnology.com or contact Frank Peake at [phone] or via e-mail at [e-mail]. Applications will be accepted and considered on a rolling basis until all territories are assigned.

About xG Technology

xG Technology is changing the fundamental building blocks, capabilities and economics of the communications industry. Its patented technologies can be applied to almost any type of communication, be it wired or wireless - voice, data or video. The company's first commercial offering xMax delivers true mobile VoIP with unsurpassed speed, reach and ease of deployment. Privately held, xG Technology is based in Sarasota, Florida. For additional information, visit www.xgtechnology.com.