(BUSINESS WIRE)--Jan. 25, 2000--
MicroTel International Inc. (OTCBB: MCTL) ("MicroTel") today
announced Orbit II Partners, L.P. ("Orbit") and OTAF, LLC, an
affiliate of Orbit has increased their beneficial ownership of
MicroTel's common stock to an aggregate of 14% as of December 23,
1999. On December 23, 1999, Orbit purchased 34.5 shares of Convertible
Preferred Stock and warrants to purchase 172,500 shares of common
stock from existing MircoTel security holders. Orbit, like the Samuel
J. Oliva Group, which simultaneously purchased 5 shares of the
preferred stock and certain warrants, has agreed to a fixed conversion
price on the shares of preferred stock. As of December 23, 1999, Orbit
and its affiliate have beneficial ownership of 2,821,485 shares of
MicroTel's common stock, including 1,743,285 shares of common stock
issuable upon conversion of preferred stock and 322,500 shares of
common stock issuable upon the exercise of warrants.
Commenting on Orbit's position Carmine T. Oliva, Chairman and CEO
stated, "Orbit is a proprietary options market maker trading firm with
forty professionals conducting business on the floor of The American
Stock Exchange (NY), The Chicago Board Options Exchange, The Pacific
Exchange (San Francisco) and The Philadelphia Stock Exchange. We are
please that Orbit II has demonstrated such faith in MicroTel's future
by increasing its position significantly."
MicroTel International, Inc. is a holding company for its three
wholly owned subsidiaries -- CXR Telcom Corporation in Fremont, CA,
CXR, S.A. in Paris, France and Xcel Information Technologies
Corporation (XIT) in Rancho Cucamonga, CA. CXR Telcom Corporation and
CXR, S.A. design, manufacture and market electronic telecommunication
test instruments, wireless and wireline voice, data and video
transmission and networking equipment. XIT Corporation 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 U.S., 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.
--30--JS/np*
CONTACT: MicroTel International, Inc.
Randolph Foote, CFO, 909/297-2653
Web site: microtelinternational.com
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS MERGERS/ACQ
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