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Microtel International Announces a New Range of GSM/GPRS Data Products Targeted at the U.S. Electric Utility Power Grid Market

Posted on: Thursday, 4 September 2003, 06:00 CDT

RANCHO CUCAMONGA, Calif.--(BUSINESS WIRE)--Sept. 4, 2003--MicroTel International Inc. (OTCBB:MCTL) ("MicroTel"), an international manufacturer of electronic components, subsystems and communications equipment, today announced that its "Messenger(C)" range of GSM (Global System for Mobile Communication) and GPRS (General Packet Radio System) mobile data products, previously announced on June 19, 2003 and launched in the continental European market earlier in June, has now been launched in the United States specifically targeted to the electric utility power grid market.

The product, "Messenger(C)," is based on a scalable, flexible architecture and can be provided either as a component to larger system integrators wishing to incorporate the data into other databases, or as a turnkey system, complete with management system and utilizing a selection of industry standard databases. The product is especially targeted at the management of highly remote utility infrastructures where wireline systems are too costly to install and maintain.

Graham Jefferies, executive vice president of MicroTel International, commented: "We have already seen the successful introduction of our Test Instrument product line into the U.S. utility market together with the ongoing success of our traditional wireline transmission products. The recent infrastructure problems with the electricity grid have highlighted the vulnerability of the distribution network and the potential and the need for real time information at all levels including highly remote locations. The 'Messenger(C)' has a proven track record in providing wireless monitoring of substations and infrastructures in the European utility market and its introduction now into the U.S. market could not be more timely."

Carmine Oliva, Microtel's chairman, president and CEO, stated: "MicroTel's CXR Telcom subsidiary and its CXR, SAS (France) subsidiary have for a long time served the electric utility market for voice and data transmission and test products. However, it is only as recently as July 31, 2003, before the blackout, that we previously announced that our CXR Telcom subsidiary had developed a specific 756A Digital Data test instrument suitable for testing and performance monitoring of the vital 'Protective Relaying Backbone Communication' links for the power grid itself. We now have a wireless GSM/GPRS mobile product solution especially suited to cost effectively address those highly remote power grid substations where wireline solutions are two costly or not available. MicroTel now has a broad range 'one stop shop' system solution for managing the power grid that includes wireline and wireless transmission and test and monitoring capability."

About MicroTel International

MicroTel International Inc. is an international manufacturer of defense and aerospace electronic components and subsystems and communication equipment. Our electronic components group, which includes XET Corp. and its international subsidiaries, provides custom power conversion products, digital and rotary switches and subsystem assemblies to the global electronic components market and are primarily used for defense, aerospace and industrial applications. Our communications group, consisting of CXR Telcom Corp. and CXR, S.A.S. (France), provides network access, transmission and test equipment to the North American and European communications industries. Founded in 1983, MicroTel operates out of facilities in the United States, France, the United Kingdom and Japan. As of July 31, 2003, we had a total of 192 employees in our 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 press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. MicroTel's business strategy and future plan 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, MicroTel's ability to successfully pursue electric utility power grid applications for its test instruments and wireless GMS/GPRS and its wireline transmission products, the projected growth in capital expenditures by the electric utilities to expand and improve installation and control monitoring of differential protective relaying systems and the adoption of wireless alternatives for highly remote substation locations, the ability of MicroTel to expand its presence in electric utility markets, trends in MicroTel's financial condition and results of its 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 Form 10-K for the year ended Dec. 31, 2002.

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