SARASOTA, FL--(Marketwire - Sep 6, 2012) - xG Technology ("xG," "xG Technology" or the "Company"), the developer of a portfolio of wireless communications technologies, including cognitive radio networks, is pleased to announce that it has received a $3.3 million purchase order from Northeast Florida Telephone Company, Inc. ("NEFCOM"), a Macclenny, Florida-based provider of local phone, long distance, Internet services and telephone equipment. The order consists of $2.4 million for xMax cognitive radio networking equipment, including xMax wireless access points, an xMSC mobile switching center, and xMod personal hotspots (capable of supporting existing smartphones, tablets and laptops), and engineering services estimated at $877,000. This will enable NEFCOM to provide wireless voice and advanced broadband services in its regulated telephone market area located in Baker County, Florida.
This purchase order results from a previous xMax trial conducted with Townes Tele-Communications, Inc. ("Townes"), the parent company of NEFCOM, announced on March 15, 2011.
Commenting on the announcement, Larry Townes, Chairman and CEO of Townes, said, "I look forward to xG's successful deployment and very much anticipate xG's promise of high quality, reasonably priced broadband service for the United States' rural telephone providers and the important customer base which they serve."
George Schmitt, xG Non-Executive Director, said, "We are very pleased to receive this order from NEFCOM. Rural broadband is a key target market for xG, and this announcement validates the potential of xMax to deliver high-performance, cost-effective wireless capability to the thousands of rural and independent service providers seeking an effective broadband solution."
Under the terms of the order, xG will be paid upon the delivery of xMax equipment to NEFCOM, following FCC certification of the RF devices, which is expected to take place in the fourth quarter of 2012.
Given that Larry Townes is a director of MB Technology Holdings, LLC ("MBTH"), the parent company of xG, and is a substantial shareholder of Townes, the parent company of NEFCOM, entering into the equipment purchase agreement and engineering services agreement described above by the Company is considered to be a related party transaction pursuant to Rule 13 of the AIM Rules for Companies. The Company's directors consider, having consulted with the Company's nominated adviser, Allenby Capital Limited, that the terms of the equipment purchase agreement and engineering services agreement are fair and reasonable insofar as the Company's shareholders are concerned.
ABOUT xG TECHNOLOGY
xG Technology is a leading developer of innovative and disruptive communications technologies for wireless networks. Its patented intellectual property portfolio covers a broad range of applications, including smart wireless networks that can help address the global wireless spectrum crisis through advanced technology. xG is commercializing some of these technologies to create xMax, the world's first carrier-class cognitive (i.e. smart) radio network. The Company's technology provides ways to significantly increase the efficient use of spectrum, allowing network operators to offload existing voice or data traffic, reduce dropped calls, and enhance network capacity for their customers. xMax's standards-based IP architecture minimizes network deployment, management and operational costs while simplifying the delivery of high quality fixed and mobile voice and data services. xMax can enhance and extend any wireless network, and provides an economical last mile solution for hard to reach customers and devices. Using field-proven technology, xMax enables the delivery of mobile broadband services to consumers, agencies and enterprises worldwide in both licensed and free unlicensed bands. Based in the USA, xG has over 60 US and more than 140 international patents and pending patent applications. xG's intellectual property is available for licensing in domestic and international markets. For more information, please visit www.xgtechnology.com.
NEFCOM is dedicated to giving Baker County, Florida residents access to a wide range of communications services from a single source. Building on Northeast Florida Telephone Company's strong foundation of over 50 years as a local telephone service provider, the NEFCOM companies provide a wide variety of services to meet customer needs and expectations in the rapidly changing communications environment. The primary goal of NEFCOM is to continue to provide quality enhanced products and services to its customers at competitive rates. That goal is being pursued daily by a dedicated staff of managers and employees who believe that, although we may never be the biggest, we should strive to be one of the best.