Microtel Reports Reverse Stock Split

Business Wire, August 16, 1996

SAN JOSE, Calif.--(BUSINESS WIRE)--Aug. 16, 1996--Microtel International (AMEX:MOL) reported today that a one-for-five reverse stock split of its common stock was approved by its shareholders at the Annual Meeting of its Shareholders held on Aug. 15, 1996.

The conversion of shares is effective for holders of record on Aug. 29, 1996. Any fractional shares resulting from the conversion of one share for each five shares held as of the record date will be considered a whole share upon the issuance of the new class of converted common stock.

The purpose of the reverse stock split is to increase the per share stock price of the company's common stock. The company anticipates that the reverse stock split will result in a bid price in excess of $3 per share and that, if it is successful in maintaining the stock price above $3 per share, the stock will generate greater interest among professional and institutional investors.

Microtel, through its wholly-owned subsidiaries, CXR Telecom Corp. based in San Jose, and CXR S.A., based in Paris, France, designs, manufactures and markets electronic telecommunications test equipment and data communications equipment for the telecommunications industry, including telephone companies, interconnect carriers, private networks, banks, brokerage firms and government agencies.

CONTACT: Microtel International

Barry Reifler, 408/435-8520