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:MCTL) ("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 Detection (RFID) 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 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 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 Oct. 31, 2002, MicroTel International employed a total of 207 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 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. |
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