XG Technology : Announces Second New U.S. Patent Award This Week for Interference Mitigation Techniques

Invention Helps Improve Performance of Wireless Systems by Overcoming
Impairments to Transmission Quality

Sarasota, Florida-May 29, 2014-xG Technology, Inc. ("xG" or the "Company") (Nasdaq: XGTI, XGTIW), a developer of wireless communications and spectrum sharing technologies, has announced that it has been awarded a new patent for interference mitigation techniques. This is the second new patent grant announced by xG Technology this week. On May 27, xG announced a cognitive radio patent awardthat enables enhanced interference mitigation for devices in shared spectrum.

The new patent, "OFDM Symbol Diversity Combiner for Burst Interference Mitigation" ( U.S.P.T.O. #13/486,331) covers a method of diversity combining that operates on individual OFDM (Orthogonal Frequency Division Multiplexing) symbols, allowing efficient mitigation of burst interference typical to many devices operating on unlicensed bands. More specifically, this invention describes a diversity combiner that operates as a maximal ratio combiner (MRC) or selection combiner, depending on operation conditions.

Interference is a major impediment to reliable and efficient wireless transmissions, and can negatively impact performance and coverage in high-capacity mobile systems. While interference has been an issue in unlicensed spectrum bands for years, mobile carriers are now also experiencing unprecedented levels of interference in their licensed spectrum-based mobile networks, due to skyrocketing demand for mobile data. This latest xG innovation describes advanced techniques for detecting and reducing unwanted transmissions that lead to harmful interference, thus improving system performance.

"This new patent enhances xG's position as a leader in developing innovative approaches to overcoming the challenges faced by today's wireless networks," said John Coleman, CEO of xG Technology. "The company continues to invest in our xMax cognitive radio technology foundation in ways that enable us to offer compelling mobile broadband communications solutions. These solutions are unencumbered by many of the costs and limitations associated with traditional wireless options, and this key value proposition is driving interest from prospective clients in a broad range of industries."

With this patent award, xG Technology's intellectual property portfolio now stands at 60 U.S. patent matters (51 issued) and 145 international patent matters (65 issued).

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 createdxMax, a patented all-IP cognitive radio technologythat enables robust mobile broadband communications for private, consumer and government networks. xMax can solvethe 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 networks deliver voice, video and data services to fixed and mobile users. 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). These and other technologies make xMax ideal for wide area, as well as rapid emergency communication deployment. xG offers solutions fornumerous 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 140 international patents and pending patent applications, and its products have been sold in both domestic and foreign markets. xG is a publicly traded company listed on the NASDAQ Capital Market where xG common stock is traded under the symbolXGTIand xG warrants are traded under the symbolXGTIW. For more information, please visit www.xgtechnology.com.

Free Writing Prospectus Disclosure

On April 3, 2014, the issuer, xG Technology, Inc., filed a Registration Statement on Form S-1/A Amendment No. 1 (Registration No. 333-194810) with the Securities and Exchange Commission (the "SEC") with respect to the offering to which this press release relates. A copy of the preliminary prospectus for the offering is included in that registration statement. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may obtain these documents for free by visiting EDGAR on the SEC web site atwww.sec.gov. Alternatively, copies of the preliminary prospectus and, when available, the final prospectus relating to the offering may be obtained from Roth Capital Partners, LLC, Prospectus Department, 888 San Clement Drive, Newport Beach, CA 92660, telephone: [phone], e-mail:[e-mail] e-mail address is being protected from spambots. You need JavaScript enabled to view it ; or Feltl and Company, Inc., Prospectus Department, 800 LaSalle Avenue, Suite 2100, Minneapolis, MN, 55402, telephone: [phone], e-mail:[e-mail] e-mail address is being protected from spambots. You need JavaScript enabled to view it .

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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