RANCHO CUCAMONGA, Calif.--(BUSINESS WIRE)--Jan. 4, 2000--MicroTel
International Inc. (OTCBB: MCTL) ("MicroTel") Tuesday announced that
Samuel J. Oliva, brother of MicroTel's chairman, president and chief
executive officer, has purchased some of the preferred shares held by
one of the original preferred shareholders in a private transaction.
The Samuel J. Oliva Group was formed solely for the purpose of
this purchase. The Group consists of family members including
MicroTel's chairman. Samuel J. Oliva is manager and will exercise
investment control over the preferred shares. He has agreed to a fixed
conversion price and will hold the shares as preferred stock for long
term investment.
Commenting on the transaction, Samuel J.Oliva stated: "This
purchase was made to establish confidence in and to attract larger
institutional investors with long term investment objectives who could
buy out two original investors who have been converting and selling
their common shares into the public market."
Randolph Foote, chief financial officer of MicroTel, stated that:
"As part of the purchase by Mr. Oliva's Group all three original
preferred shareholders have agreed to a fixed conversion price based
upon the price formula in the original agreement at a certain point in
time."
"With this purchase completed, and the preferred stock now having
a fixed conversion price, the company has simultaneously concluded the
buyout of the remaining shares of the two selling shareholders by an
institutional investor with a longer term investment perspective and
we believe this should relieve the continuous selling pressure by our
previous preferred shareholders."
MicroTel International is a holding company for its three wholly
owned subsidiaries -- CXR Telcom Corp. in Fremont, Calif.; CXR, S.A.
in Paris, and XIT Corp. in Rancho Cucamonga, and its 37% owned
affiliate company Digital Transmission Systems, Inc. located near
Atlanta.
CXR Telcom Corp., CXR, S.A. and Digital Transmission Systems
design, manufacture and market electronic telecommunication test
instruments, wireless and wireline voice, data and video transmission
and networking equipment. XIT Corp. designs, manufactures and markets
information technology products, including input and display
components, subsystem assemblies and power supplies.
The company operates out of facilities in the United States,
France, England and Japan.
The statements in this press release relating to matters that are
not historical are forward-looking statements which involve risks and
uncertainties including, without limitation, economic and competitive
conditions in the markets served by the company affecting the demand
for the company's products, product pricing, market acceptance, access
to distribution channels and other risks detailed from time to time in
the company's Securities and Exchange Commission filings. These risks
could cause actual results to differ materially from those anticipated
or described herein.
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CONTACT: MicroTel International, Inc., Rancho Cucamonga
Randolph Foote, 909/297-2653
Web site: microtelinternational.com
KEYWORD: CALIFORNIA GEORGIA INTERNATIONAL EUROPE ASIA PACIFIC
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS TELECOMMUNICATIONS
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