SOURCE: xG Technology, Inc.

February 21, 2012 09:00 ET

xG Technology, Inc. Granted Eight Additional Patents Since November 15, 2011 $350 Million IP Portfolio Valuation

IP Portfolio Used in Expert Third Party Valuation Has Now Been Increased by 42% to 27 Issued US Patents

SARASOTA, FL--(Marketwire - Feb 21, 2012) - xG® Technology, Inc. ("xG" or the "Company") (AIM: XGTU), the developer of a portfolio of wireless communications technologies, including cognitive radio networks, is pleased to announce that in the three months following the expert Intellectual Property (IP) valuation by AccuVal Associates, Inc. that it has been issued an additional 8 patents, growing its granted US patent portfolio by over 40 percent. The November 15, 2011 valuation found the fair market value of xG's United States patent portfolio (the valuation did not value patents filed in foreign jurisdictions) was $350 million. The newly issued patents cover key areas of the rapidly growing cognitive radio market, including: spectrum sharing, media access control (MAC), mobile VoIP signaling and interference detection/mitigation.

"We continue to build and strengthen the intellectual property foundation of our wireless business and are actively employing these inventions to deliver industry leading mobile broadband and cogitative networking solutions to multiple vertical markets," said John Coleman, Chief Executive Officer of xG Technology. "Securing patent recognition and protection for our growing portfolio of intellectual property is a key component of our business strategy and we will continue to innovate by leveraging our substantial R&D capabilities."

Patent portfolios are recognized as key assets in the mobile communications sector. For example, Google cited a significant IP portfolio as a key driver of its $12.5 billion acquisition of Motorola's Mobility.

As of the date of this release, xG's United States patent portfolio includes 27 patents granted, with an additional 34 applications patent pending. Its foreign patent portfolio totals 138 patent matters (issued and pending).

ABOUT xG TECHNOLOGY

xG Technology is a leading developer of innovative and disruptive communications technologies for wireless networks. Its extensive patented intellectual property portfolio covers a broad range of applications including cognitive radio networks. The Company has commercialized some of these technologies to create xMax, the world's first carrier-class cognitive radio network.

xMax's standards-based IP architecture minimizes network deployment, management and operational costs while simplifying the delivery of profitable fixed and mobile services. Using field-proven cognitive radio technology, xMax enables the delivery of these revenue-generating mobile services in both licensed and unlicensed bands. In its initial commercial offering, the xMax cognitive radio system enables carriers and other operators to monetize profitably the free unlicensed spectrum in the 900MHz ISM band.

xMax also offers unique capabilities to enterprises, utilities, government agencies and others who require advanced wireless communications to support business operations and mission critical applications.

xG offers turnkey xMax network solutions including base stations, mobile switching centres, network management systems, deployment tools, end-user equipment and customer support.

xG has deployed a 32 square mile xMax network in Fort Lauderdale, Florida to showcase its cognitive radio, mobile VoIP and dynamic interference mitigation capabilities. The Company's xMax products have been successfully tested and trialed by the US Army at two of its US bases. Based in the USA, xG has over 60 US and more than 130 international patents and pending patent applications. For more information, please visit www.xgtechnology.com.

Contact Information