xG Technology, Inc. Receives Order for Broadband-Enhanced xMax Pilot Network from Canadian Telecommunications Provider LikeTone Group, Inc.

SARASOTA, Fla.--(EON: Enhanced Online News)--xG Technology, Inc. (LSE-AIM: XGT, "xG" or the "Company"), the developer of a broad portfolio of wireless communications technology, including cognitive radio networks, is pleased to announce that it has received a $50,000 sales order from LikeTone Group, Inc. (“LikeTone”), a Toronto, Ontario (Canada)- based VoIP and prepaid cellular carrier. The order is for xMax networking equipment, including xMax wireless access points, end-user devices and a mobile switching center. This will enable LikeTone to develop deployment and business models that leverage xMax’s unique capabilities to deliver new mobile broadband and VoIP services to their customers - without the need to purchase expensive wireless spectrum licenses.

“As a competitive provider, we are very excited to employ xMax cognitive radio as a means of reaching our customers wirelessly without the high cost of licensed spectrum.”

After test driving the xMax network capabilities in Florida, LikeTone determined that it was in its strategic interest to be one of the first commercial customers to acquire xMax equipment. LikeTone founder and head of R&D, Balrajh Pera, stated, “As a competitive provider, we are very excited to employ xMax cognitive radio as a means of reaching our customers wirelessly without the high cost of licensed spectrum.”

LikeTone joins a growing number of forward-looking commercial communications providers that have expressed interest in xMax via Memoranda of Understanding (MoU) documents or purchase orders.

Under the terms of the order, xG Technology will be paid upon delivery of its broadband-enhanced xMax equipment to LikeTone, which will take place in 2012.

xMax has been deployed for testing by the US Army at Fort Bliss and White Sands Missile Range since February 2011 and is being deployed at additional sites supporting advanced communications demonstration events with the US Air Force and Army in July 2011 and beyond.

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 Technology offers turnkey xMax network solutions including base stations, mobile switching centers, network management systems, deployment tools, handsets 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 are also being tested and trialed by the US Army at two of its US bases. Based in the USA, xG Technology has over 50 US and more than 100 international patents and pending patent applications. For more information, please visit www.xgtechnology.com.

ABOUT LIKETONE

LikeTone Group, Inc. is a recognized leader in guaranteed prepaid long distance phone service. LikeTone Group is a leading worldwide supplier of prepaid telecommunication services. By working in partnership with the largest telecommunication and network services companies, LikeTone Group Inc. is able to consistently offer the lowest cost and highest quality products available.

Headquartered in Toronto, Canada, LikeTone offers services to both private and corporate clients throughout 4 continents around the world. LikeTone has built its reputation on quality and guaranteed services, setting the company apart from the rest of the prepaid telecommunications industry.