XG Techonology, Inc. : Director Share Dealings

January 5, 2012

xG Technology, Inc.

("xG", "xG Technology" or the "Company")

Director share dealings

xG, the developer of a portfolio of wireless communications technologies, including cognitive radio networks, announces that it was notified on January 4, 2012 that 5,000 shares of $0.01 each in the common stock of the Company (each a "Share") were purchased in the market on December 23, 2011 at a price of $0.55 per Share by each of the two children of Rick Mooers, Executive Chairman of the Company. Following this transaction, the total direct and indirect beneficial interest in Shares held by Rick Mooers' children or entities or trusts for the benefit of his children, including Shares held by MB Technology Holdings, LLC, the parent company of xG, is 116,361,280 Shares (representing approximately 55.27 per cent. of the total issued and outstanding share capital of the Company). 

Upon such purchase, the Shares purchased have become restricted stock for US securities law purposes and will be transferred to, and will trade under, the restricted trading line (trading symbol: XGT; ISIN: USU984031059). 

Note: Following the above-mentioned purchases and recent employee Share option exercises and conversions of restricted Shares into unrestricted Shares, the total number of unrestricted Shares stands at 37,808,234 and the total number of restricted Shares stands at 172,767,720 (including 40,000 Shares held by the Company in treasury).

END

Contacts

John Coleman, Chief Executive Officer	[phone]
Roger Branton, Chief Financial Officer	[phone]
James Woodyatt, Investor Relations	[phone]
Nick Naylor	[phone]
Mark Connelly	[phone]
Chris Crawford	[phone]
Fusion PR (Media and Analyst Relations)
Heather Lukens	[phone]

ABOUT XG TECHNOLOGY

xG Technology is a developer of innovative and disruptive communications technologies for wireless networks. Its patented intellectual property portfolio covers a 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 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 trialled 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 .