Will Leverage Vislink Technology to Deliver Impressive New and Improved Efficiencies and Services to Rail Operations

xG Technology, Inc. (“xG” or the “Company”) (Nasdaq: XGTI, XGTIW), a leading provider of wireless video solutions to broadcast, law enforcement and defense markets, and private mobile broadband networks for critical communications, announced today that its Vislink business has entered into an agreement with Panasonic System Solutions Europe (“Panasonic”) to collaborate on projects to bring Vislink’s proven video communications technology to the rail industry. This technology has the potential to deliver unprecedented capabilities and enhancements to rail operations.

Vislink’s decades-long experience in the design and delivery of reliable, high-quality video transmission systems built to perform in demanding environments brings unique and compelling benefits to the rail industry. Vislink solutions are perfectly suited for situations that involve high-speed vehicles, the effects of shock and vibration and challenging RF (radio frequency) conditions, which are all typical in rail operations.

James Walton, President of IMT Ltd., and head of IMT and Vislink operations outside of the Americas, said, “We are pleased to embark on this exciting partnership with Panasonic to introduce our technology to the rail market, where it has the opportunity to significantly improve efficiency of operations, leading to new and better services, enhanced reliability and improved passenger safety. We have a successful history of working with the team at Panasonic, combining our wireless systems with their broadcast video products for use at many events and installations around the world. By formalizing this partnership, it brings our technical and commercial teams even closer together. We are confident that this will allow both companies to leverage their respective strengths to work on shared projects that have the potential to positively impact new markets.”

The collaboration with Panasonic leverages Vislink’s proven proficiency in onboard wireless technologies that it has developed for use in demanding, real-time sports broadcasting, as well as their pedigree as a trusted provider of mission-critical video solutions for law enforcement, defense and public safety applications.

For its part, Vislink’s collaboration with Panasonic follows its strategy of partnering with tier-one technology providers to jointly identify and pursue business opportunities in targeted vertical markets. In joining forces with Panasonic, Vislink has aligned itself with a leading provider of technology solutions and a major player in the European transportation sector.

Tony O’Brien, Managing Director of Panasonic System Solutions Europe, said, “We have a stated aim of providing the connected technology solutions for a safer, more efficient rail industry. We needed to find the right technology partner to help us in this challenging environment and in Vislink we have found it. Together, we can solve long standing challenges that the industry faces, such as the ability to offer latency-free surveillance across the rail network. By combining Panasonic’s innovative surveillance technology with Vislink’s wireless technology this is now a step closer.”