Microtel International Retains Equitilink LLC To Enhance Investor Relations Campaign; Campaign Intended to Extend Broker Dealer Support for Microtel's Stock

Business Wire, Oct 2, 2001

Business Editors

RANCHO CUCAMONGA, Calif.--(BUSINESS WIRE)--Oct. 2, 2001

Microtel International, Inc. (OTCBB:MCTL), an international provider of telecommunications equipment and electronic components, today announced that it has engaged Equitilink LLC to build on the Company's existing investor relations activities.

Microtel stated that Equitilink will direct a three-month financial communications campaign to raise retail community support for Microtel's common stock. The campaign will begin on Oct. 1, 2001, targeting retail brokers, thereby increasing trading liquidity and reducing share-price volatility.

Carmine T. Oliva, president, chairman and CEO, stated, "We are optimistic about our partnership with Equitilink. Microtel's focus has been on establishing and developing our telecommunications equipment and electronic components business. The Company's strong revenue growth and sustained profitability over the past twelve months are the results of these efforts. We now feel the timing is right to focus on broker dealer support for the company's stock as well."

"We met with the management team of Microtel and understand their past financial performance and future growth strategies," said James J. Mahoney, managing director of Equitilink. "As a result of these meetings," he added, "we believe the Company is currently undervalued in the market.

"This is especially true given Microtel's presence in two markets poised to benefit over the upcoming months: its broadband telecommunications test instruments are likely to sell well as consumers shift from air travel to teleconferencing and other telecommunications services; and its electronic components for military and defense equipment are likely to see at least steady sales given the current political environment. We look forward to increasing the awareness of the Company within the broker dealer community, thus helping Microtel achieve greater shareholder value."

About Equitilink LLC

Equitilink LLC is a San Diego agency providing a variety of custom services for public companies seeking results-oriented investor relations programs. The Company assists public companies in improving their shareholder relations through professional, cost-effective public/investor relations strategies and specializes in working with small-cap and micro-cap companies. Equitilink helps its clients achieve fair market value by expanding investor awareness and broker dealer awareness. For more information on Equitilink visit the Company's Web site at www.equitilinkpr.com.

About Microtel International

Microtel International, Inc. is an international telecommunications equipment and electronic components company comprising three wholly owned subsidiaries -- CXR Telcom Corporation in Fremont, Calif. and CXR, S.A. in Paris, France -- which comprise the Telecommunications Group, and XET Corporation in Rancho Cucamonga, Calif., which together with its international subsidiaries, comprise the Electronic Components Group. CXR Telcom Corporation and CXR, S.A. design, manufacture and market field and central office electronic telecommunications test instruments, voice, data and video transmission and network access equipment. XET Corporation and its subsidiaries design, manufacture and market electronic components, including digital switches and power supplies. The Company operates out of facilities in the U.S., France, England and Japan.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

With the exception of historical information, the matters discussed in this news release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The Company's business strategy and future plans of operations are subject to a number of risks and uncertainties and the actual future results of Microtel could differ from those statements. Factors that could cause or contribute to such differences include, but are not limited to, the failure of Equitilink to develop new investor's awareness of Microtel or the failure of such awareness to translate into increased liquidity or share-price volatility for Microtel's securities, the projected growth in the telecommunications equipment or electronic components markets, the ability of Microtel to expand its presence in these markets, trends in Microtel's financial condition and results of its operations, Microtel's ability to continue to operate profitably, Microtel's ability to distinguish itself from its current and future competitors, the continued demand for Microtel's products, changes in worldwide economic conditions, changes in governmental regulations and policies, the emergence of competitive products and services and unforeseen technical issues and those factors contained in the "Risk Factors" Section of the Company's Amendment No. 2 to its Form 10-K for the year ended Dec. 31, 2000, and the Company's Form 10-Q for the quarterly period ended June 30, 2001.