SARASOTA, FL, MAY 31, 2018 - xG Technology, Inc. ("xG" or the "Company") (Nasdaq: XGTI, XGTIW), whose IMT Vislink brands are recognized as the global leaders in live video communications in the broadcast, law enforcement and defense markets, announces today a partnership with Panasonic that will see IMT Vislink's external wireless solution integrated into the Panasonic studio camera range, enabling an end-to-end video capture, transmission and receiving workflow for various broadcast applications.

Panasonic's AK-UC4000 will also receive a software upgrade in September 2018, which will include the capability for 4K output via one of the 12G-SDI outputs from the camera head. When combined with the IMT Vislink HCAM transmitter, the AK-UC3000, AK-HC5000 and AK-UC4000 will all allow Full HD wireless video transmission, with 4K transmission using the UC3000 and UC4000.

Dean Chettra, Global Channel Manager at IMT Vislink, says, "The HCAM represents the next generation of HEVC 4K UHD wireless transmitters, supporting applications such as ENG and sports broadcasts. The HCAM, which comes with highly flexible and configurable mounting options and intuitive video interfaces, can be mounted to broadcast cameras, ENG cameras and prosumer cameras broadening its market appeal."

Stefan Hofmann, Sales Engineering Manager at Panasonic, says, "With user-interchangeable RF modules and a range of software options, the HCAM continues the line of innovative, high performance wireless camera systems from IMT Vislink. We think that our users will find that the joint development we have carried will ensure that they have a smooth workflow for live wireless broadcast."

The HCAM features interchangeable, futureproof dual SFP modules supporting quad 3/6/12G SDI/HDMI/Fiber Optic/SMPTE 2022-6 HD-SDI over IP interfaces as well as Wi-Fi and Bluetooth(r) control via a dedicated Android and iOS application.

IMT Vislink is currently shipping its external wireless solutions for the AK-UC3000 and AK-UC4000. This is based on the existing HCAM transceiver unit, which supports HD and UHD on a switchable basis.

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 outstanding performance, reliability and 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/.

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.

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.

About Panasonic System Communications Company Europe (PSCEU)

Panasonic System Communications Company Europe's (PSCEU) goal is to improve the working lives of business professionals and help their organisations' efficiency and performance through world leading technology. We help organisations capture, compute and communicate all sorts of information: image, voice, and textual data. With around 350 staff, engineering design expertise, global project management capability and a large European partner network, PSCEU offers unrivalled capability in its markets.

PSCEU is made up of six product categories:

• Broadcast & ProAV offers high quality products and solutions to ensure smooth operation and excellent cost-performance to end-users in the areas of remote camera solutions, switchers, studio camera solutions and ENG P2. The VariCam line-up of professional digital video cameras are capable of true 4K and High Dynamic Range (HDR) which makes them the ideal solution for cinema, television, documentary and live event production.

• Communication Solutions offer world leading communication solutions including professional scanners, telephony systems and SIP terminal devices.

• Computer Product Solutions help mobile workers improve productivity with its range of Toughbook rugged notebooks, Toughpad business tablets and electronic point of sales (EPOS) systems. As European market leaders, Panasonic Toughbook had a 67% revenue share of sales of rugged and durable notebooks and Panasonic Toughpad held a 56% revenue share of sales of rugged business tablets in 2016 (VDC Research, March 2017).

• Industrial Medical Vision provides applications for various segments such as medical, life science, ProAV or industrial. The product portfolio includes complete and OEM micro camera solutions. End-users, system integrators or distributors can choose from a range of full product solutions and component vision technology.

• Security Solutions, including video surveillance cameras and recorders, video intercom systems and intruder alarms.

• Visual System Solutions, including projectors and professional displays. Panasonic offers the widest range of Visual products, and leads the European high brightness projector market with a 37.20% market revenue share (Futuresource >5klm (FY16 April 2015 - March 2016, excl. 4K & digital cinema).

About Panasonic

Panasonic Corporation is a worldwide leader in the development of diverse electronics technologies and solutions for customers in the consumer electronics, housing, automotive, and B2B businesses. Celebrating its 100th anniversary in 2018, the company has expanded globally and now operates 495 subsidiaries and 91 associated companies worldwide, recording consolidated net sales of Euro 61.711 billion for the year ended March 31, 2017. Committed to pursuing new value through innovation across divisional lines, the company uses its technologies to create a better life and a better world for its customers. To learn more about Panasonic: http://www.panasonic.com/global.