Microtel International Subsidiary, CXR Telcom, Receives $470,000 in Orders from the Ameritech Division of SBC Communications to Supply Test Instruments.

Business Editors

RANCHO CUCAMONGA, Calif.--(BUSINESS WIRE)--Dec. 5, 2001

Microtel International, Inc. (OTCBB:MCTL), an international provider of telecommunications equipment and electronic components, today announced that its CXR Telcom subsidiary has received $470,000 in orders from Ameritech to supply its 704A-series hand-held, analog/digital test instruments.

The orders are for 59 of CXR Telcom's 704A-PKG test sets and represent the first major orders placed by Ameritech in almost 10 years. The orders were placed almost immediately after CXR Telcom was granted independent approval from Ameritech to offer products to Ameritech's technicians. CXR Telcom also anticipates that it will be able to generate $750,000 in orders over the next fiscal year and targets $2,500,000 in orders over the next three years.

The 704A-series test instruments were developed for telecommunications companies business service technicians and are designed to be lightweight and portable while still offering the capability of handling a variety of advanced functions which reduce the technicians' need to bring multiple test instruments to work sites. The instruments are used to test a wide variety of business telecommunications services including analog/digital PBX installations, ISDN, digital data, ADSL broadband Internet-access lines and T1/FT1 lines, and are similar to the units sold to Verizon (announced in October press release).

Carmine T. Oliva, Chairman, President and CEO of Microtel, stated: "The CXR 704A-series test sets have been the multi-function transmission test sets of choice with Verizon, Bell South and SPRINT as well as the three other major SBC operating divisions, Southwestern Bell, Pacific Bell and Southern New England Telephone Company. We are very pleased that Ameritech has now added their support of our products and are confident that we will be able to further develop this relationship going forward."

About Microtel International

Microtel International, Inc. is an international telecommunications equipment and electronic components company comprising three wholly owned subsidiaries -- CXR Telcom Corporation in Fremont, Calif., and CXR, S.A. in Paris, France -- which comprise the Telecommunications Group, and XET Corporation in Rancho Cucamonga, Calif., which together with its international subsidiaries, comprise the Electronic Components Group. CXR Telcom Corporation and CXR, S.A. design, manufacture and market field and central office electronic telecommunications test instruments, voice, data and video transmission and network access equipment. XET Corporation and its subsidiaries design, manufacture and market electronic components, including digital switches and power supplies. The Company operates out of facilities in the U.S., France, England and Japan.

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" within the meaning of the Private Securities Litigation Reform Act of 1995. The Company's business strategy and future plans of operations are subject to a number of risks and uncertainties and 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 failure of Ameritech to place further orders with Microtel or that vary in scope from those provided in this release, the failure of Microtel to deliver the components under conditions of the contract, changes in the projected growth of the telecommunications equipment markets, the ability of Microtel to expand its presence in these markets, trends in Microtel's financial condition and results of its operations, Microtel's ability to continue to operate profitably, Microtel's ability to distinguish itself from its current and future competitors, the continued demand for Microtel's products, changes in worldwide economic conditions, changes in governmental regulations and policies, the emergence of competitive products and services and unforeseen technical issues and those factors contained in the "Risk Factors" Section of the Company's Amendment No. 2 to its Form 10-K for the year ended December 31, 2000 and the Company's Form 10-Q for the quarterly period ended September 30, 2001.