MicroTel International's Subsidiary, CXR Telcom, Receives Contract for Homeland Security Communications Test Sets.

Business Editors/High-Tech Writers

RANCHO CUCAMONGA, Calif.--(BUSINESS WIRE)--July 8, 2003

MicroTel International Inc. (OTCBB:MCTL) ("MicroTel"), an international manufacturer of electronic components, subsystems and communications equipment, today announced that its CXR Telcom subsidiary, located in Fremont, Calif., has received a contract award from the Department of Transportation for delivery of its 704A Integrated Transmission and Signaling Telecommunication Field Test Sets for delivery to the United States Coast Guard, in Petaluma, Calif.

The order for 48 units for $150,000 is the first substantial application of the Halcyon 704A with the Coast Guard and represents the initial role out of a program that will encompass the complete Coast Guard Homeland Security Network. These initial test instruments will be used in a classroom environment as part of a mandated overall upgrade of the critical homeland Coast Guard communication security links.

Erv Stein, vice president of Sales for CXR Telcom stated: "We are always delighted to work with our government. We have a long-standing relationship with the Department of Transportation, delivering several hundred test sets over recent years for testing the critical FAA backbone air-to-ground and ground-to-ground voice and digital facility links.

"This, however, is the first major Coast Guard procurement of the industry standard CXR Telcom 704A unit which is the transmission test set of choice with the FAA as well as virtually every major North American Telephone Company including SBC, SPRINT, Verizon, Bell South and many others. We have good reason to be optimistic that as the new Homeland Security Network is rolled out, the CXR 704A will continue to be selected as the test instrument of choice."

Graham Jefferies, executive vice president of MicroTel International commented: "We have recently witnessed a sustained increase in the demand for our telecommunication test instruments from a broad customer base following a very weak first quarter. We are recognized as the industry's leading manufacturer of field transmission impairment test instruments and have intended to build on that position in alternative non-carrier markets. This contract illustrates the potential of that strategy."

About MicroTel International

MicroTel International is an international manufacturer of defense and aerospace electronic components and subsystems and telecommunications equipment. MicroTel International's 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 electronic components global market primarily used for defense, aerospace and industrial applications.

MicroTel's telecommunications group, consisting of CXR Telcom Corp. and CXR (France) provides transmission, network access and test equipment to the North American and European communications industry. Founded in 1983, the company operates out of facilities in the United States, France, the United Kingdom and Japan. As of May 31, 2003, MicroTel International employed a total of 191 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 the ability of MicroTel to produce the 48 Halcyon 704A unites on a timely basis, that the CXR 704A may not become the test instrument of choice by the U.S. Coast Guard, Homeland Security or any other U.S. Government agency. For a more complete discussion of risks, see the information contained in the "Risk Factors" Section of the company's Form 10Q Form 10-K for the year ended Dec. 31, 2002.