Vislink Enters into Agreement with Panasonic to Bring Unprecedented Video Communications Capabilities to the Rail Industry

SARASOTA, FL, SEPTEMBER 11, 2017 - 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."

About xG Technology, Inc.

xG Technology's brands provide wireless video solutions to broadcast, law enforcement and defense markets, and private mobile broadband networks for use in challenging environments. xG's brand portfolio includes Integrated Microwave Technologies (IMT), Vislink, and xMax.

IMT has pioneered advanced digital microwave systems and is a trusted supplier to broadcast, sports and entertainment, and MAG (Military, Aerospace & Government) markets. Their products are recognized for their high level of performance, reliability, build quality, extended operating ranges and compact form factors. More information about IMT can be found at www.imt-solutions.com. Vislink specializes in the wireless capture, delivery and management of secure, high-quality, live video, and serves broadcast & media and public safety & surveillance markets. More information about Vislink can be found at http://www.vislink.com/.

xMax is a secure, rapid-deploy mobile broadband system that delivers mission-assured wireless connectivity in demanding operating environments. It was designed to serve as an expeditionary and critical communications network for use in unpredictable scenarios and during fluid situations, making it ideal for disaster response, emergency communications, and defense applications. More information about xMax can be found at http://www.xgtechnology.com/system-overview/. In addition to the above business lines, xG has a dedicated Federal Sector Group (xG Federal) focused on providing next-generation spectrum sharing solutions to national defense, scientific research and other federal organizations. Additional information about xG Federal can be found at http://www.xgtechnology.com/technology/xg-federal/.

Based in Sarasota, Florida, xG Technology has over 100 patents and pending patent applications. xG is a publicly traded company listed on the NASDAQ Capital Market (symbol: XGTI) For more information, please visit www.xgtechnology.com.

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Statements contained herein that are not based upon current or historical fact are forward-looking in nature and constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements reflect the Company's expectations about its future operating results, performance and opportunities that involve substantial risks and uncertainties. These statements include but are not limited to statements regarding the intended terms of the offering, closing of the offering and use of any proceeds from the offering. When used herein, the words "anticipate," "believe," "estimate," "upcoming," "plan," "target", "intend" and "expect" and similar expressions, as they relate to xG Technology, Inc., its subsidiaries, or its management, are intended to identify such forward-looking statements. These forward-looking statements are based on information currently available to the Company and are subject to a number of risks, uncertainties, and other factors that could cause the Company's actual results, performance, prospects, and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements.

About Panasonic System Solutions Europe

Panasonic System Solutions Europe (PSSEU), a division of Panasonic Marketing Europe, was founded in April 2016 and develops world class solutions for larger customers offering a single point of contact and accountability. These solutions involve Panasonic hardware, software, connectivity capability and third-party products, delivered with world class engineering and project management and services. Industries in focus are energy, transportation and logistics.