Integrated Microwave Technologies (IMT) Launches DragonFly Ultra-Miniature Wireless Video System

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MT. OLIVE, NJ, FEBRUARY 1, 2017Integrated Microwave Technologies (“IMT”), a business unit of xG Technology, Inc. (“xG”) (Nasdaq: XGTI, XGTIW), and a leader in advanced digital microwave systems serving the law enforcement, broadcast, sports and entertainment markets, announces the DragonFly, an ultra-miniature wireless video system, has begun shipping to customers.

The Dragonfly sets the standard in compact wireless video technology by delivering completely new and expanded points of view and perspective. It is available in a range of kits to fit various applications, including drones, sports and broadcast. Each offering caters to the specific needs of the application. The DragonFly has a compact and lightweight form factor and features minimized power requirements, making it ideal for drone and mobile use.

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“We realize the broad range of possibilities the DragonFly offers, which is why we designed multiple variations of the product to fit many applications,” says John Payne IV, president of IMT. “With the DragonFly achieving ultra-low latency, users can utilize it for remote control applications, making it the most reliable transmitter on the market.”

The DragonFly features HD/SD-SDI or optional HDMI inputs and delivers up to 50mW of power in a package measuring in at 1.85 in. x 1.38 in. x .51 in. (50 mm x 35 mm x 13 mm) that weighs less than 1.2 oz. (34 g), providing long range, reliable HD video transmission. IMT’s COFDM technology ensures the transmission of uninterrupted, live TV pictures over two miles Line-of-Sight (LOS), despite the effects of foliage, challenging terrain, buildings and other common non-line-of-sight limitations. The DragonFly also features internal ISM and GPS anti-jam filters and is available in licensed and unlicensed frequency bands.

Each DragonFly kit comes with various accessories needed to plug and play the system with ease, including mounting accessories, a microdrone ultra-small omni antenna, an HDMI or SDI extension cable and a DC integration power cable. Addition optional accessories include an ultra-small HD-SDI camera with various lens, and RS-485 and S-Bus cables.

The DragonFly is easily managed through a WiFi webpage. An Android™ or iOS device can detect the encrypted WiFi signal and automatically opens a browser window. Additionally, the DragonFly supports RS485 control channels and S-Bus controls through a 900MHz transceiver. The transceiver provides bi-direction controls of the transmitter, accessory camera, gimbal controls and more.

The DragonFly is compatible with IMT’s full line of receivers, including the IMT Direct VU HD handheld receiver, DR3 and CRx.

Additional information and technical specifications for the Dragonfly can be found at

https://imt-solutions.com/product/dragonfly/.

About Integrated Microwave Technologies

Integrated Microwave Technologies (IMT), a business unit of xG Technology, Inc., is a leader in advanced digital microwave systems and a provider of engineering, integration, installation and commissioning services serving the broadcast, sports, entertainment and law enforcement markets. The company comprises the leading microwave brands Nucomm, RF Central and IMT, offering customers worldwide complete video solutions. Nucomm is a premium brand of digital broadcast microwave video systems. RF Central is an innovative brand of compact microwave video equipment for licensed and license-free sports and entertainment applications. IMT is a trusted provider of mission-critical wireless video solutions to state, local and federal police departments.

More information can be found atwww.imt-solutions.com and www.xgtechnology.com.

Cautionary Statement Regarding Forward Looking Statements

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.

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