xMax VoIP to deploy in November

11 September 2007

 xG Technology Update

On September 6, 2007, xG Technology, Inc. conducted a presentation and demonstration on the company’s progress to date.  The event was held in Fort Lauderdale, Florida and was attended by individuals from the U.S., Europe and Latin America who are following the development the firm.

Following are highlights from the presentation:

·         Frank Peake, assistant COO and head of sales and marketing, reported that the first commercial deployment of the xMax VoIP phone service is scheduled for this November in the Daytona, Florida area and that six to eight other markets will be deployed shortly thereafter.  He also said that the company is on track to have 4G products available in 2008.

·         Joe Bobier, President and CTO, gave a review of the development of xG’s Flash Signal technology and described the development path for other products that can use this technology, such as wireless cards for PCs.  He also discussed the forward-thinking intellectual property approach that the company takes, explaining that the firm’s engineers are individually empowered to develop patents.  (Currently, xG Technology has 28 patents approved or in the approval process with the patent office.)  Mr. Bobier said numerous additional patents are now in the process of being developed at the company.

·         Professor Stuart Schwartz of Princeton University’s Electrical Engineering School provided a technical evaluation of Flash Signal technology and how it works.  He noted that it was an unconventional technology, but one based on established engineering and scientific principles.

·         As the first ever mobile VoIP network built from the ground up, xG Technology Director of Network Architecture & Product Management Shimon Hochbaum gave a presentation on the architecture that will be used to support Flash Signaling. He emphasized that because xMax is built from the ground up, it did not have to re-engineer existing legacy systems and allowed it to be developed and deployed relatively quickly.

·         xG Technology Engineer Dr. Shashidar Gandham provided an explanation of the need for, and development of, a new MAC (Media Access Control) layer for the xMax VoIP product.  He explained that new MAC protocols were developed to optimize voice traffic specifically (previous MAC protocols having been developed with data in mind), ensuring a higher Quality of Service and allowing more simultaneous calls.

·         Product development of the next generation of xG Technology handsets and other products is being handed over to the UK-based Cambridge Consultants.  Cambridge Consultants has already successfully completed the cosmetic redesign of xG’s first handset (the TX110) and xG will launch the first full commercial network using this new TX110 handset.  Duncan Smith of Cambridge Consultants presented the roadmap for the development of the second and third generations of phones and explained how an xG module can be integrated into a wide variety of products.

·         Don Fibich, executive vice president of St. John & Partners, provided a preview of print and broadcast advertising that will be used to support the xMax VoIP offering.

Demonstrations included wireless xMax VoIP phone calls and full motion video and audio which was conducted at a distance of 30 feet using only  NanoWatts (billionths of a watt) to demonstrate the power efficiency of xG’s Flash Signal modulation.

A webcast of the day’s presentation is now available to registrants on the xG Technology website: www.xgtechnology.com

xG is a registered trade mark of xG Technology, Inc. under US Trade Mark  Registration Number 3039835. xMax is a trademark of xG Technology, Inc.

 - Ends -

Enquiries:

Rick Mooers, Chairman and CEO
Roger Branton, COO and CFO
020 7638 9571

Nigel Daly
James Steel
Piper Jaffray Ltd.
020 3142 8700 

Seb Hoyle
Citigate Dewe Rogerson
020 7638 9571

ABOUT XG TECHNOLOGY
 
XG TECHNOLOGY'S BUSINESS
 
Based in Florida, USA, xG Technology has developed innovative technologies that the directors believe can change the building blocks, capabilities and economics of the communications industry. Its patented technologies can be applied to almost any type of communication including voice, data or video in wired or wireless form.
 
As its first vertical application, xG Technology has designed a mobile VoIP (Voice over Internet Protocol) base station and handset product line. Branded as xMax, these products are for use by regional carriers (internet service providers, competitive local exchange carriers and entrepreneurial parties)
seeking to deliver mobile Internet Protocol services directly to consumers without using the incumbent circuit switched or coaxial cable networks. Future releases of the xMax product line will expand from mobile VoIP to offer integrated video and data applications.
 
MARKET AND COMPETITION
 
There is a wide variety of wireless technologies in the marketplace. The  Directors believe that the key issue keeping these technologies from achieving greater success is the price versus performance of existing options. xMax changes this price/performance relationship by enabling the delivery of mobile
IP services with less infrastructure using low-cost and readily available unlicensed radio spectrum.
 
xG Technology believes that xMax is a viable solution for mobile VoIP for a  number of reasons:
     
     -    xMax is an IP solution rather than a circuit switched solution; this
          is a prerequisite for handling the VoIP application;
     -    xMax delivers high speed data in the order of Mbps rather than Kbps,
          which is essential for supporting large numbers of subscribers;
     -    xMax has a low latency physical layer, resulting in high network
          efficiency;
     -    xMax's signal profile also allows for improved range/coverage and
          better signal penetration, which is essential for maintaining call 
          session reliability; and
     -    although this feature is not central to the VoIP application itself,
          xG Flash Signal's ability to deliver wireless signals with far less 
          RF output power than conventional applications means that wireless 
          VoIP handsets will show improved battery life over other solutions.