MicroTel Announces Completion of $10.5 Million Debt Financing for its U.S. Operations, Replacing its existing $3.5 Million Facility

Business Wire, July 8, 1998

ONTARIO, Calif.--(BUSINESS WIRE)--July 8, 1998--MicroTel International Inc. (NASDAQ Small Cap: MCTL) today announced that it has finalized a $10.5 million senior debt financing with Congress Financial Corporation.

This financing replaces a previous $3.5 million facility with two lenders. The new credit facility provides funding for working capital, financing for purchase of potential acquisitions and capital equipment. The new credit facility, which carries more favorable interest rates than the ones it replaces, also eliminates the costly administrative burden of managing previous separate credit lines for individual subsidiaries.

The company will continue its existing credit arrangements for its international subsidiaries with Lloyds Bank in the United Kingdom, Banc Nationale Du Paris in France and Mitsubishi and Johan Tokyo Credit Banks in Japan.

Carmine T. Oliva, Chairman and CEO, commented: "The size and competitive interest rates are indicative of the lender's confidence in the company's operating performance and financial stability. This financing represents the cornerstone of the third and final phase of the company's plan for the integration and turnaround of MicroTel and XIT Corporation following the reverse merger of these entities in March 1997. This new credit facility provides adequate working capital to produce and distribute the company's current growing and profitable book of business."

The statement 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: MicroTel International Inc.
             James P. Butler
             909/456-4321
                  or
             H.L. Lanzet Inc.
             Herbert Lanzet
             Gerald Ortsman
             212/687-0061