xG Technology Completes the Remainder of Previously-Announced Cost Reduction Initiatives, Bringing Total to $5 Million Annual Savings

SARASOTA, Fla., June 26, 2018

"We originally informed the market back on April 30 of our intent to identify and implement the remaining half of the $5 million in cost cuts announced at that time," said Gary Cuccio, xG Technology Executive Board Chairman and CEO. "Today, we can say that we have successfully achieved this objective, and notably, within the 60-day time frame we forecasted. Moreover, the savings realized will allow us to further focus on and invest in our fast-growing live video communications business lines."

"The decisions taken in implementing the balance of these cost reductions will play a key role in our efforts to achieve EBITDA and cash flow profitability, which we are targeting for the third and fourth quarters of 2018," said Roger Branton, xG Technology CFO and co-founder. "Going forward, we will continue to focus our efforts on maintaining cost control, supporting revenue growth and evaluating strategic M&A opportunities where they would be beneficial for the company and the interests of its shareholders."

About xG Technology, Inc.

xG Technology's IMT and Vislink brands are recognized as the global leaders in live video communications and are trusted suppliers to tier-1 customers in broadcast/sports/entertainment, and law enforcement/public safety/defense markets. Their products are recognized for high levels of performance, reliability, build quality, extended operating ranges and compact form factors. In the broadcast, sports and entertainment sectors, IMT and Vislink provide high-definition communication links to reliably capture, transmit and manage live event footage. In the law enforcement, public safety & defense markets, IMT and Vislink provide secure video communications and mission-critical solutions to local, national and international agencies and organizations. More information can be found at www.imt-solutions.com and www.vislink.com.

xG is also the developer of xMax, a secure, rapid-deploy mobile broadband system that delivers mission-assured wireless connectivity in demanding operating environments. xMax was specifically designed to serve as an expeditionary and critical communications network for use in unpredictable scenarios and during fluid situations. This makes it a compelling solution 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/.