XG Technology : Announces General Availability of xMax Cognitive Radio Software

Begins Rollout of GA System Software to Installed Base and New Orders

Sarasota, Florida - March 7, 2014 - xG Technology, Inc. ("xG" or the "Company") (Nasdaq: XGTI, XGTIW), a developer of wireless communications and spectrum sharing technologies, has announced that the General Availability (GA) release of xMax cognitive radio software is now ready for delivery. The GA package of system software will replace and upgrade the Conditional Availability releases that were provided to various xG customers with their initial deliveries of xMax broadband networking equipment. Customers will get the new GA software free of charge and roll out is expected to be completed by the end of Q1 2014. GA software will be included with all future shipments to backlogged orders, as well as new deployments.

This cognitive software release optimizes numerous features and enhancements in the xMax system that support high performance spectrum sharing. The GA update includes fully-vetted extensions to xG's key enabling technologies, including dynamic spectrum access (DSA), interference mitigation, full mobile handoff and software defined radio (SDR) capabilities. The release is the result of continued development and testing by xG's engineering staff to insure a high level of reliability and performance in challenging radio frequency environments.

"We are excited to release these enhanced capabilities to our customers' networks via over-the-air software updates," said John Coleman, CEO of xG Technology. "This underscores one of the core benefits of leveraging advanced software defined radio technology in xMax. It enables xG to rapidly deliver feature and capability updates via software-only rollouts, versus hardware upgrades and replacements required by competitive solutions."

xMax is a comprehensive fixed and mobile broadband solution that is designed for rapid deployment and low operating costs. It offers a carrier-grade user experience and can serve as a network backbone or last-mile solution for a number of markets and applications. xMax leverages software defined radio (SDR) and cognitive radio access network technology that enable efficient sharing of both licensed and unlicensed spectrum.

About xG Technology

xG Technologyhas created a broad portfolio of intellectual property that makes wireless networks more intelligent, accessible, affordable and reliable. The company has created xMax, a patented all-IP cognitive radio technologythat enables spectrum sharing. xMax can solve the crisis facing the wireless industrycaused by data-hungry devices and applications that are straining network capacity. It eliminates the need to acquire scarce and expensive licensed spectrum, thus lowering the total cost of ownership for wireless broadband access. xG's goal is to help wireless broadband network operators make more efficient use of their spectrum allocations and to create new opportunities for innovation in unlicensed spectrum. The xMax cognitive radio system incorporates advanced optimizing technologies that include spectrum sharing, interference mitigation, multiple-input multiple-output (MIMO) and software defined radio (SDR). xG offers solutions for numerous industries worldwide, including urban and rural wireless broadband, utilities, defense, emergency response and public safety.

Based in Sarasota, Florida, xG has 60 U.S. and over 130 international patents and pending patent applications, and its technology is available for licensing in both domestic and foreign markets. xG is a publicly traded company listed on the NASDAQCapital Market where xG common stock is traded under the symbol XGTIand xG warrants are traded under the symbol  XGTIW. For more information, please visit www.xgtechnology.com.

Cautionary Statement Regarding Forward Looking Statements

Statements contained herein that are not based upon current or historical fact are forward-looking in nature and constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements reflect the Company's expectations about its future operating results, performance and opportunities that involve substantial risks and uncertainties.  These statements include but are not limited to statements regarding the intended terms of the offering, closing of the offering and use of any proceeds from the offering. When used herein, the words "anticipate," "believe," "estimate," "upcoming," "plan," "target", "intend" and "expect" and similar expressions, as they relate to xG Technology, Inc., its subsidiaries, or its management, are intended to identify such forward-looking statements. These forward-looking statements are based on information currently available to the Company and are subject to a number of risks, uncertainties, and other factors that could cause the Company's actual results, performance, prospects, and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements.

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