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25th February 2008

Cambridge Consultants developing wide area wireless VoIP handset for xG Technology Inc.

Cambridge Consultants today announced that it has secured a multi-million dollar contract with Florida-based xG Technology Inc. to design and develop their next generation VoIP (Voice over Internet Protocol) wireless handset. The handset is capable of wide area operation enabled by xG's proprietary technology. The development, when complete, promises to bring considerable value to both consumers and network operators by substantially reducing the cost of rolling out a mobile network.

Following on from the successful concept development phase, under this latest contract, Cambridge Consultants will provide a turnkey development - including industrial, electronic and mechanical design and user interface software- for the TX60 handset on behalf of xG Technology Inc., a developer of revolutionary wireless communications technologies.

Rick Mooers, Chief Executive Officer of xG Technology Inc. says, "We selected Cambridge Consultants for their expertise in innovative product development, and their ability to get product to market quickly. They have proved to be an excellent fit for development on our first vertical application."

Based on xG Technology's xMax platform, the product will allow the world's first wide area wireless mobile VoIP network to be implemented with an elegant mass-produced handset. The TX60 will initially be commercially available through independent local operators in the USA. Carrier customers can set up local transceivers and, using an area's existing internet backbone, offer subscribers low-cost, flat rate, mobile voice and data to any part of the USA and, in time, other countries.

Duncan Smith, head of consumer products at Cambridge Consultants, commented, "We are delighted to build on xG's innovative technology to create a handset that addresses the huge market opportunity presented by the flexibility of mobile telephony combined with the economic advantages of being based on existing internet infrastructure. This is an exciting first application for xG's technology."

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