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MicroTel International Subsidiary XET Corp. Secures Third Contract for Custom Avionics Communications Subassemblies
Custom Avionics Subassemblies Contracts Year-to-Date Exceed $840,000
RANCHO CUCAMONGA, Calif.--(BUSINESS WIRE)--July 25, 2002--MicroTel International Inc. (OTCBB:MCTL - News), an international manufacturer of electronic components and telecommunications equipment, today announced that its XET Corp. subsidiary has secured a third contract this year from a major U.S. military prime contractor for custom avionics communications subassemblies.

The latest contract is valued at $313,000 and brings the total value of the three contracts to $840,000. Shipments for all three contracts will take place by the end in the third and fourth quarters of 2002.

William J. Miller, executive vice president and general manager of XET, stated: "We are extremely pleased that XET Corp. has again been selected to produce these state-of-the-art communications avionics subassemblies. XET Corp. continues to demonstrate to our customer our ability to achieve their highest quality demands and expedited delivery requirements of very complex electronic subsystems.

"We believe that this is another acknowledgment of XET Corp.'s aerospace and military design, manufacturing and test capabilities. We anticipate participating in an additional follow-on contract release for this program by the end of the year."

Carmine T. Oliva, chairman, president and CEO of MicroTel International, stated, "This ongoing contract is indicative of the strong and growing book of business our Electronic Components Group is achieving both here in the U.S., as well as in Europe.

"For the first time since the merger of MicroTel and XET Corp. in 1997 the balance of our aerospace and defense business is outweighing our telecommunications business. We are rapidly transforming ourselves into a dominantly focused defense business, a business in which we have been active since 1985."

About MicroTel International

MicroTel International is a worldwide manufacturer of electronic components and telecommunications equipment. MicroTel International's electronic components group, which includes XET and its international subsidiaries, provides custom power conversion products and digital switches to the electronic components global market primarily used for aerospace, defense and industrial applications.

MicroTel's telecommunications group, consisting of CXR Telcom Corp. and CXR S.A., provides testing, transmission and network access equipment to the North American and European telecommunications industry.

Founded in 1983, the company operates out of facilities in the United States, France, the United Kingdom and Japan. As of April 30, 2002, MicroTel International employed a total of 221 persons in its various subsidiaries and divisions.


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 that involve a number of risks and uncertainties. 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, there is no assurance that MicroTel will receive additional orders from the major U.S. military prime contractor mentioned in this news release or any other contractor, projected growth in other defense related electronic components markets, the ability of MicroTel to expand its presence in these markets, trends in MicroTel's financial condition and results of operations, MicroTel's ability to distinguish itself from its current and future competitors, the continued demand for MicroTel's products, 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 Form 10-K for the year ended Dec. 31, 2001, and the company's Form 10-Q for the quarterly period ended April 30, 2002.




Contact:
MicroTel International Inc., Rancho Cucamonga
Randolph D. Foote, 909/987-9220 (ext. 2653)
www.microtelinternational.com