XG Technology Inc : xG Technology to Ship xMax Network to Haxtun Telephone to Fulfill Backlog

Sarasota, Florida-December 10, 2013-xG Technology, Inc. ("xG" or the "Company") (Nasdaq: XGTI, XGTIW; AIM: XGTU.L, XGT.L), a developer of wireless communications and spectrum sharing technologies, will imminently ship a complete xMax broadband cognitive radio network system to Haxtun Telephony Company ("Haxtun"), a Colorado-based rural telephone services provider.

This shipment is expected to be completed within a week, and will fulfill the existing order backlog with this customer. The shipping estimate is based upon xG's current production ramp.

"This shipment of xMax wireless broadband services and solutions to Haxtun's rural communities will be xG's second delivery against our backlog," said John Coleman, CEO of xG Technology. "The xG team is proud to be working with the Haxtun Telecom, professionals who are dedicated to bringing new broadband services to their customers. We remain focused on accelerating the execution of our product, delivery and revenue plans, and are working with our customers to prioritize shipments according to need and speed the conversion of our backlog into revenue."

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 networking technology that enable efficient sharing of both licensed and unlicensed spectrum.

Haxtun Telephone Company, established in 1900, serves over 1600 access lines across five counties in northeastern Colorado. It serves a rural economic base centered on agriculture and is committed to providing its customers with quality telecommunications services at reasonable prices.

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 and self-organizing networks. xG offers solutions for numerous industries worldwide, includingurban 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 and on the London Stock Exchange's Alternative Investment Market (AIM). On the NASDAQ, xG common stock is traded under the symbol XGTIand xG warrants are traded under the symbol  XGTIW. On the AIM, xG's unrestricted shares trade under the stock symbol XGTU.Land xG's restricted 'Reg S' shares trade under the stock symbol XGT.L.

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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