MicroTel's Digitran Division of its XIT Corp. Subsidiary Has Been Awarded a Subcontract by a Major European- Based International Aerospace Supplier for Electronic Switches for the U.S. Army and the U.S. Navy

Business Wire, August 7, 2000

Business Editors & High-Tech Writers

RANCHO CUCAMONGA, Calif.--(BUSINESS WIRE)--Aug. 7, 2000

The Subcontract, Totaling More Than $775,000, is For Delivery

in Q4-2000 & Q1-2001

MicroTel International Inc. (OTCBB:MCTL) ("MicroTel") Monday announced that its Digitran Division of XIT Corp. has received a subcontract for Night Vision Goggle compatible switches valued in excess of $775,000.

The Digitran(R) switches are used for aircraft cockpit instrumentation making them compatible with Night Vision Illumination Systems (NVIS).

According to William J. Miller, vice president & general manager of XIT: "This award is further evidence of the high confidence shown by the U.S. armed forces in Digitran(R) switches as a cost-effective solution for military and other U.S. government NVIS aircraft applications.

"The broad family of Digitran(R) panel-mounted, coded switches are used worldwide in many difficult applications where high reliability, special lighting and/or difficult environments demand fail safe performance."

Carmine T. Oliva, MicroTel's chairman, president and CEO said: "We are very pleased with the performance of the Digitran Division. It has contributed $1.1 million in pre-tax profitability to MicroTel's first six month's performance. Its backlog of business is greater than it has been for the past several years and it is running 60% ahead of its year-to-date sales forecast.

"We expect this division to continue to contribute a large portion of our planned second-half profitability for our components business."

MicroTel International is an international telecommunication electronics company comprising three wholly owned subsidiaries -- CXR Telcom Corp. in Fremont, Calif., CXR, S.A. in Paris and XIT Corp. (Xcel Information Technologies Corp.) in Rancho Cucamonga. CXR Telcom Corp. and CXR, S.A. design, manufacture and market electronic telecommunication test instruments, wireless and wireline voice, data and video transmission and network access equipment.

XIT Corp. designs, manufactures and markets information technology products, including input and display components, subsystem assemblies and power supplies. The company operates out of facilities in the United States, France, England and Japan.

The statements in this news 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.