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MicroTel's Subsidiary, XCEL Japan Ltd., Has Been Awarded an Additional ``RFID'' Order Which Now Brings the Original Contract Total to $730,000.


Business Editors/High-Tech Writers

RANCHO CUCAMONGA, Calif.--(BUSINESS WIRE)--Nov. 19, 2002

MicroTel International Inc. (OTCBB OTCBB

See OTC Bulletin Board (OTCBB).
:MCTL MCTL Military Critical Technologies List
MCTL Marine Corps Task List
MCTL Multi-Conductor Transmission Line
) ("MicroTel") today announced that its XCEL Japan Ltd. subsidiary (XJL XJL Joliette, Quebec, Canada - Joliette / via Rail Service (Airport Code) ) has been awarded a major contract addition for Radio Frequency Identification See RFID.  Detection (RFID (Radio Frequency IDentification) A data collection technology that uses electronic tags for storing data. The tag, also known as an "electronic label," "transponder" or "code plate," is made up of an RFID chip attached to an antenna. ) chip and wire electronic components, bringing the total contract value to $730,000.

This new contract addition calls for delivery of 600,000 units with an additional value of $330,000. Delivery is over a twelve-month period beginning January 2003.

Commenting on the new contract, Shigeo Fujii, managing director of XJL stated: "We are very pleased that XCEL Japan Ltd. has received this contract addition for 'RFID' electronic components. We expect to achieve new orders from new customers as we continue to identify new applications for this state-of-the-art technology. RFID technology allows large inventories of items or products to be quickly, permanently and uniquely tagged and identified, using inexpensive tape coils and radio frequency sensor chips.

"Applications for this new technology that XJL is pursuing include retail product theft prevention, inventory management for retail and industrial customers, gaming machine control and credit card identification for consumer markets."

William Miller, executive vice president and general manager of XET XET Xbox Elite Team (Belgian video gaming group)
XET Xerox Ethernet Tunnel
 Corp., XJL's parent company commented, "We are extremely pleased to have won this important contract addition. This latest order will help our XJL business unit achieve increased earnings and revenue growth in 2003, in what is a continuing difficult Japanese economic environment."

About MicroTel International

MicroTel International is an international manufacturer of defense and aerospace 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 defense and aerospace applications.

MicroTel's telecommunications group, consisting of CXR CXR
abbr.
chest x-ray


CXR,
n chest x-ray; an image of the thoracic cavity, produced by an irradiation scan of the upper torso.
 Telcom Corp. and CXR S.A., provides testing, transmission and network access equipment to the North American North American

named after North America.


North American blastomycosis
see North American blastomycosis.

North American cattle tick
see boophilusannulatus.
 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 Oct. 31, 2002, MicroTel International employed a total of 207 persons in its various subsidiaries and divisions.

Safe Harbor Safe Harbor

1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated.

2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive.
 Statement Under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and  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 and XCEL Japan Ltd. could differ from those statements. XCEL Japan Ltd. may not be able to achieve new orders from new customers for RFID components and may not achieve increases earnings and revenue growth in 2003. Factors that could cause or contribute to such differences include, but are not limited to, the projected growth in the electronic components markets in Japan, the ability of XCEL Japan Ltd. to expand its presence in its 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, Japanese economic conditions, changes in governmental regulations and policies, the emergence of competitive products and services and unforeseen technical issues and the inability of XCEL Japan Ltd. to deliver product on a timely basis thus leading to a cancellation of some or all of this contract addition and those factors contained in the "Risk Factors" Section of the company's Form 10-K for the year ended Dec. 31, 2001.
COPYRIGHT 2002 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2002, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Geographic Code:1USA
Date:Nov 19, 2002
Words:566
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