MicroTel's French Subsidiary in Reseller Agreement With SCITEC, Ltd. of Australia

Business Wire, July 20, 1998

ONTARIO, Calif.--(BUSINESS WIRE)--July 20, 1998--

Companies Look For Minimum First Year Revenues Of $1.25 Million

MicroTel International, Inc. (NASDAQ Small Cap: MCTL) today announced that CXR, S.A., MicroTel's Paris, France-based subsidiary and manufacturer of transmission and test equipment, has signed an agreement with SCITEC, Ltd., based in Australia, to resell their new line of High Bit Rate Digital Subscriber Loop (HDSL) products. The agreement complements CXR's existing line of professional-grade custom configured modems, and enables CXR to integrate SCITEC's HDSL technology into complete custom transmission products.

Jacques Moisset, President of CXR, S.A. explains, "Together with our sister subsidiary, CXR Telcom in Fremont, CA, we are a worldwide and well-known manufacturer of professional grade modems and are well-positioned to sell HDSL technology to our large existing customer base. We expect to do well with these new products which serve a rapidly expanding market for high speed network terminating products, especially driven by internet and other increases in subscriber traffic. Orders for these new products have already been received and shipments will begin almost immediately."

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.

CONTACT: James P. Butler, CFO

MicroTel International, Inc.

(909) 456-4321

or

Herbert Lanzet/Gerald Ortsman

(212) 687-0061