MicroTel International, Inc.'s CXR Telcom Corporation Expands Its Relationship with the U.S. Federal Government.

Business Editors

RANCHO CUCAMONGA, Calif.--(BUSINESS WIRE)--July 23, 2003

MicroTel International, Inc. (OTCBB:MCTL), an international manufacturer of defense and aerospace electronic components and communications equipment, today announced that its CXR Telcom subsidiary, an authorized supplier to the United States Office of Federal Supply and General Services Administration since 1993, recently expanded its relationship with the Federal government by participating in GSA Advantage!(TM). GSA Advantage(TM) is a trademark of the Office of Federal Supply Services, General Service Administration (GSA).

GSA Advantage!(TM) is the Federal government's premier web-based catalog, information, and ordering system which gives Federal customers the ability to search, compare, and order products. CXR Telcom has recently complied with Federal requirements for participation in GSA Advantage!(TM) and currently has over 70 products and services listed for worldwide vendor consideration on the website.

Commenting on CXR's participation in GSA Advantage!(TM), Kevin Haug, President of CXR Telcom, stated, "Through the dogged determination of our Vice President of Sales, Erv Stein, we have finally persevered through the rigors of the administration requirements necessary to obtain this vital participation. The GSA Advantage!(TM) program opens up a world of Federal government procurement opportunities for CXR Telcom."

Graham Jefferies, EVP MicroTel and Telcom Group Chief Operations Officer, stated, "Our CXR subsidiary in the past year has sold most of its telecommunications test equipment to the major public carriers in the United States such as Verizon, SBC, and AT&T. However, for many years we also sold to the Federal Aviation Administration (FAA). In response to the severe downturn in major public carrier capital spending in 2002, we implemented a customer diversification strategy that focuses on expanding our customer base to private corporate, electric utility, transportation, government, and military communication networks. Participating in the GSA Advantage!(TM) program is one of the main achievements necessary to expand our sales opportunities beyond our traditional FAA base to the broadest U.S. government and military market. CXR Telcom has made great strides in the last twelve months to penetrate non-teleco markets, so much so that we now expect our CXR Telcom subsidiary to operate profitably in the second half of 2003. Another good recent example of government penetration for sales was included in our July 8 announcement that CXR Telecom received a contract award from the Department of Transportation for its field test sets for delivery to the United States Coast Guard in Petaluma, California. Now with our participation in the GSA Advantage!(TM) program we look forward to even greater sales to instrumentalities of the U.S. government."

About MicroTel International

MicroTel International, Inc. is an international manufacturer of defense and aerospace electronic components and subsystems and telecommunications equipment. MicroTel International's electronic components group, which includes XET Corporation 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 Corporation 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 U.S., France, the U.K., and Japan. As of June 30, 2003, MicroTel International employed a total of 193 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 press 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 CXR Telcom to obtain sales as a result of its participation in the Federal government Advantage!(TM) program, the abilities of CXR Telcom to substantially expand its customer base beyond the telecom carriers, the ability of CXR Telcom to operate profitably in the second half of 2003, and those factors contained in the "Risk Factors" Section of the Company's Form 10-K for the year ended December 31, 2002.