RNS Number : 1141F
xG Technology Inc.
06 October 2008
FOR IMMEDIATE RELEASE 6 October 2008
xG Technology and Treco agree on infrastructure deal
XG Technology Inc., (AIM: XGT), which is implementing a revolutionary low cost mobile
communications system to defy all others currently
on the market, has marked the foundations for a long term relationship with Treco
International by signing a preliminary, binding agreement
to act as its exclusive infrastructure partner in the roll out of the base stations across the
US.
Under the agreement, Treco, which recently placed an order for 1,000 base stations and an
option for a further 4,000, would rent the
equipment to xG's territory partners, such as regional internet service providers and local
telecoms carriers. The capital cost to xG's
customers of implementing and running the network, which is a fraction of its competitors,
will dramatically hasten the deployment of the
revolutionary mobile service.
Given the unique patented xMax technology which uses the internet to carry its voice
traffic - so-called VoIP calling - xG's territory
partners will be able to offer high quality mobile communications packages at low fixed
prices, thereby beating competitors in terms of both
cost and service provision. xG expects that its xMax system will begin deploying next month in
the southern Florida market, with other US
territories following quickly on. xMax's superior technology capabilities mean that data and
modem services will be added on early in 2009.
Treco International is part of the Treco Group, which also includes Casper Holdings, a
company that recently took a 4.4 per cent stake
in xG. Treco Group is a private conglomerate with its major holdings in real estate, finance
and telecommunications.
Rick Mooers, Chairman and Chief Executive of xG, said: "Treco significantly changes the
equation for both xG and our customers and makes
the commercial case for switching to the xMax service even more compelling. In this depressing
economic climate the mobile market is still,
more than ever, in need of our unique VoIP-based solution. xG is delighted to have established
a relationship with Treco and, therefore, are
in the privileged position to execute a swift delivery of this revolutionary system."
In a statement, Treco Group said: "We have many years of experience backing successful
entrepreneurial ventures and are in a unique
capital position, free from external financing for any present or future obligation. We are
now thrilled to be a part of something which
will have such wide ranging global impact and our involvement will assist in delivering the
xMax service more efficiently and profitably for
all concerned."
Contacts
xG Technology, Inc. www.xgtechnology.com
Richard Mooers, Chairman and Chief Executive Officer +44 20-7367-8888
Roger Branton, Chief Operating Officer and Chief +44 20-7367-8888
Financial Officer
Christopher Price, Director of Communications +44 78-5247-9043
Jonas Krepp, Director of Investor Relations +44 78-2744-4634
Bankside Consultants +44 20-7367-8888
Steve Liebmann or Simon Bloomfield
Relige, Hichens Harrison PLC +44 20-7588-5171
Daniel Briggs
Daniel Stewart & Company PLC +44 20-7776-6550
Simon Starr
ING Bank N.V., London Branch (Nominated Adviser) +44 20-7767-1000
Xavier Moreels or Francis Moore
ABOUT XG TECHNOLOGY
Based in Florida, USA, xG Technology, Inc. has developed innovative, patented wireless
communications technologies which offer the
potential to significantly reduce the required capital investment and operating costs of
wireless voice and data communications services.Its mobile VoIP (Voice over Internet Protocol) base station and handset product line - branded
as xMax - is intended for use by regional
carriers (internet service providers, competitive local exchange carriers and entrepreneurial
parties) which seek to deliver mobile Internet
Protocol voice and data services directly to consumers without using the incumbent circuit
switched or coaxial cable networks. The xMax
system provides an extended range of operation and is expected to provide superior handset
battery performance and double the call capacity
of mobile Wi-Max networks. Planned future releases of the xMax product line include integrated
video and data applications.
COPIES OF ANNOUNCEMENT
Copies of this announcement will be available from the Company's website
(www.xgtechnology.com) and from the offices of its Nominated
Adviser, ING Bank N.V., London Branch, 60 London Wall, London EC2
This information is provided by RNS
The company news service from the London Stock Exchange
END
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