AT&T Admits Deal Against VoIP; xG Technology Offers Lower-Cost Alternative for Consumers

SARASOTA, Fla.--(Business Wire)--
AT&T has admitted to the Federal Communications Commission that it struck a deal
to prevent mobile VoIP calling on its 3G network. In fact, no cellular carrier
in the United States allows VoIP calling across their mobile network. VoIP
technology saves consumers money by routing calls over the Internet instead of
traditional networks. AT&T responded to the FCC inquiry, arguing that the deal
was needed to assure that revenues from its current voice plans would not be
reduced by enabling mobile VoIP calling.

According to xG Technology, these revenues are seen as crucial by carriers to
support the tremendous cost of deploying and operating traditional cellular
networks. "It makes perfect sense," said Joseph Bobier, chief technology officer
of xG Technology, "No U.S. carrier currently allows VoIP across mobile networks.
Given the billions of dollars they spent acquiring spectrum, building and
deploying their cellular networks, the economics simply wouldn`t work. VoIP
saves consumers money, but the flip side of this benefit is that this means less
revenue for operators. In fact, the only two major wireless carriers in Europe
that allow mobile VoIP traffic added charges that essentially strip out the
savings that VoIP delivers."

"By contrast, xG Technology recognized that Internet based calling-VoIP-will be
the technology of the future and we designed our mobile system from the ground
up with that in mind."

By focusing on reducing the cost of the cellular network itself, xG Technology
is a company that believes mobile VoIP can provide significant savings to
consumers and still be profitable for carriers. The company`s approach has been
to develop a network that uses free spectrum instead of the carrier paying
billions for licensed spectrum. This translates to lower costs that can be
passed onto the consumer.

Seven-year-old xG Technology is a US based company, but development of xMax is
an international effort that involves companies in Europe and Asia. A portfolio
of 50 US and 124 international patents and pending patent applications has been
developed with the goal of bringing lower-cost communications to consumers.

For additional information, please visit www.xgtechnology.com and www.xmax.com.
To arrange media interviews, please contact Tim Ayers at 202-422-5048 or
tim@ayersassociates.net. Accredited journalists and published analysts are
welcome to visit the xG Technology facility in Florida to meet with business and
technical staff. While in Ft. Lauderdale, journalists and analysts can
experience xMax for themselves-the first all digital, mobile VoIP network. To
make an appointment for a visit, please contact Chris Whiteley at 954-572-0395
or chris.whiteley@xgtechnology.com.

for xG Technology
Tim Ayers, 202-422-5048
tim@ayersassociates.net

Copyright Business Wire 2009