xG Technology CEO and Executive Board Chairman George Schmitt Converts Loan into xG Common Stock

xG Technology, Inc. ("xG" or the "Company") (Nasdaq: XGTI, XGTIW), a developer of wireless communications and spectrum sharing technologies, announced today that George Schmitt, Chief Executive Officer and Chairman of the Board of Directors of xG has agreed to convert $500,000 of existing loans due from the Company into shares of the Company's common stock. The loans will be converted at a price of $0.56 per share, the high bid price of the Company's common stock on October 6, 2015, the day prior to the conversion, as reported by the Nasdaq Capital Market.The balance of the loans due from the company to Mr. Schmitt remain senior secured and rank pari passu with other existing senior secured debt of the Company.Mr. Schmitt also indicated his intention to purchase modest quantities of additional shares of xG common stock from time to time through open market transactions. The timing and amount of such purchase transactions will depend on market conditions and corporate and regulatory considerations.Mr. Schmitt said, "I believe xG Technology represents an undervalued investment opportunity at its current market price. My wife and I decided to convert the debt we hold from xG into equity in the Company because of our steadfast conviction in xG's business strategy, its technology foundation, and our continued confidence in its prospects for substantial growth and execution on its plan." He concluded, "xG continues to have significant engagement with potential buyers from markets including emergency management, public safety, national defense, rural telecom and others where our cognitive radio wireless solutions deliver critically-needed capabilities."