MicroTel's CXR Telecom Subsidiary Announces $2 Million Siemens Telecom Contract

Business Wire, Dec 16, 1998

ONTARIO, Calif.--(BUSINESS WIRE)--Dec. 16, 1998--Carmine T. Oliva, Chairman and CEO of MicroTel International Inc. (Nasdaq Small Cap: MCTL) today announced that MicroTel's subsidiary, CXR Telecom Corporation, executed a contract with Siemens Telecom Networks for the purchase of Test lines, Far End Responders and Remote Office Test lines. The equipment purchases will be used to replace previous yearly procurements from 3M Telecom Products division. CXR Telecom has received the first purchase order, valued at $1,225,000. MicroTel conservatively estimates the value of this one year contract at $2 million. The agreement is renewable at the option of both parties under the same terms and conditions.

Commenting on the contract, Oliva noted, "the explosive growth in voice and data services has made it increasingly important for competetive switch manufacturers like Siemens to increase the bandwidth of their network, thereby enhancing the robustness of security measures. The increased bandwidth will enable the manufacturers to offer automated routine testing and a multitude of other new services to their customers."

MicroTel International Inc. is a holding company for its three wholly owned subsidiaries - CXR Telecom Corp. in Freemont, Calif.; CXR, S.A. in Paris, France and XIT Corp. in Ontario, Calif. CXR Telecom Corp. and CXR, S.A. design, manufacture and market electronic telecommunication test instruments, voice and data transmission and networking equipment. XIT Corp. designs, manufactures and markets information technology products, including input and display components, subsystem assemblies, power supplies, hybrid microelectronic and other circuits. The Company operates out of facilities in the U.S., France, England and Japan. Approximately 60% of the Company's sales are to customers in the telecommunications industries, including among many others AT&T and the Regional Bell Operating Companies domestically, and France Telecom in Europe. The remainder of sales are for information technology products for industrial, medical, military and aerospace customers. The Company's products are distributed under each subsidiary's well known brand names.

For further information please consult the Company's investor Website at http://www.microtelinternational.com.

The statements in this press release relating to matters that are not historical are forward-looking statements which involve risks and uncertainties including, without limitation, economic and competitive conditions in the markets served by the Company affecting the demand for the Company's products, product pricing, market acceptance, access to distribution channels and other risks detailed from time to time in the Company's Securities and Exchange Commission filings. These risks could cause actual results to differ materially from those anticipated or described herein.