CORRECTION: Mitec Reports First Quarter Results Forecast Shows Strong Second-Quarter Growth.

MONTREAL--(BUSINESS WIRE)--Oct. 3, 1996--MITEC TELECOM (ME, TSE MTM.) CORRECTION

In the press release transmitted on September 16, 1996 for MITEC TELECOM INC., an error occurred in the table. For the "Research and developement" column of 1995, the amount in dollars should have read 249 (not 80) and in the "Net income before tax" column of 1996, the amount in dollars should have read 80 (not 249).

THE COMPLETE AND CORRECTED VERSION FOLLOWS: THE COMPLETE AND CORRECTED VERSION FOLLOWS:

Mitec telecom inc. reports its results for the first quarter ended July 31, 1996.

First quarter sales were $4.4 million compared with $4.3 million a year earlier. The increase is attributed to higher revenues from the Company's U.K. facility which manufactures products for the satellite and terrestrial microwave segments of the wireless telecommunications market.

The Company recorded a pre-tax profit in its first quarter. However, because we could not recognize any tax benefits from losses in our New Jersey facility, our earnings reflect a small after-tax loss. The reason for the loss in New Jersey was an industry delay in the rollout of infrastructure equipment for the new cell-based personal communications services (PCS). This rollout is now expected to take place in our third and fourth quarters. The remaining entities of the Company realized a combined after-tax income of $283,000 compared with $183,000 a year earlier. This 54 percent increase is mainly due to greatly improved gross margins.

Traditionally, the Company has reported consistent quarter-over-quarter improvement in its results. With the upcoming PCS rollout as well as increased penetration of the European market, the Company expects this trend to accelerate in the remaining quarters. The Company's backlog for the first quarter is up 18 percent over the same period last year.

"We are projecting second quarter sales of $5.0 million, compared with $4.2 million a year earlier," said CFO Keith Findlay, "and net income of $0.5 million, or $0.06 per share, compared with $0.1 million, or $0.01 per share, in 1995. As our order book continues to fill up, we believe that the year-end forecast is achievable."

On May 31, 1996, mitec telecom inc. acquired the remaining 20 percent of the common shares of mitec europe co. ltd. from a director for a cash consideration of CDN$100,000.

The highlight of this first quarter was the listing of mitec telecom inc. on the Montreal and Toronto stock exchanges on July 9, 1996. A total of 2,950,000 common shares (of which 642,308 were sold by principal shareholders) were sold to the public at a per-share issue price of $6.50, for gross proceeds of $19.2 million. Net proceeds to the Company were $13.5 million, after subtracting expenses of the offering. The total number of common shares now outstanding are 8,977,692. The underwriting group, led by Marleau, Lemire Securities Inc., included Yorkton Securties Inc. and Richardson Greenshields of Canada Limited.

mitec telecom inc. designs and manufactures components, subsystems and multifunction subsystems for the wireless telecommunications industry. The Company sells its products worldwide to primarily original equipment manufacturers for incorporation into wireless infrastructure equipment, which is used in voice, data and cable communications networks. mitec telecom has 214 employees at its facilities in Pointe-Claire (Qu bec), Tinton Falls (New Jersey), Copthorne (England) and Wang-Noi (Thailand).

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mitec telecom inc.

Consolidated Statement of Earnings
(in thousands of dollars except earnings per share)

                                       Three Months ended
                                            July 31
                                     1996             1995
                                       $                $

Sales                                4,417            4,259
Gross profit                         1,654            1,518
Selling and administration           1,074              895
Research and development               369              249
Net income before tax                   80              257
Net income (loss)                      (97)             183
Earnings (loss) per share           $(0.01)           $0.03

CONTACT: mitec telecom inc.

Mr. Myer Bentob, 514/ 694-6666

or

mitec telecom inc.

Mr. Keith Findlay, 514/ 694-6666