MicroTel Outlines Compliance Plan To NASDAQ

Business Wire, Jan 29, 1999

ONTARIO, Calif.--(BUSINESS WIRE)--Jan. 29, 1999--MicroTel International Inc. (NASDAQ Small Cap: MCTL)(the "Company") today announced that at a hearing conducted on Jan. 22, 1999, it presented the NASDAQ Stock Market ("NASDAQ") with its plan to comply with the requirements for continued listing on the NASDAQ Small Cap Market(SM).

The hearing was requested by the Company in November 1998 in connection with the Company's efforts to regain compliance with NASDAQ's minimum bid price requirement. Several days prior to the hearing, the Company was advised by NASDAQ that the Company was not in compliance with two other NASDAQ Marketplace Rules relating to the issuance by the Company of its Series A Preferred Stock in July 1998. The Company brought itself into compliance with one such requirement as of the hearing date by filing a supplemental listing application and is presently working to become compliant with the other requirement relating to shareholder approval in connection with the issuance and conversion of the Company's Series A Preferred Stock.

The plan presented to NASDAQ calls for the Company to complete its compliance efforts within the next two to three weeks and the Company requested that it be afforded sufficient time in order to complete the elements of its plan. The hearing panel did not advise the Company regarding the timing of any decision it might make and there can be no assurance that the Company's plan will be acceptable to NASDAQ.

MicroTel International, Inc. is a holding company for its three wholly owned subsidiaries -- CXR Telcom Corporation in Fremont, Calif.; CXR, S.A. in Paris, France and XIT Corporation in Ontario, Calif. CXR Telcom Corporation and CXR, S.A. design, manufacture and market electronic telecommunication test instruments, voice and data transmission and networking equipment. XIT Corporation 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.