ONTARIO, Calif.--(BUSINESS WIRE)--Nov, 12, 1997--MicroTel International Inc. (NASDAQ Small Cap: MCTL) today announced it has acquired for stock privately-owned Critical Communications, Inc. of St. Charles, Ill., a provider of sophisticated, state-of-the-art, portable telephone test instruments used by both long-distance carriers and local telephone service providers as well as by corporate and government telecommunications end users. Critical's manufacturing operations will be merged into MicroTel's CXT Telecom, Inc. subsidiary, located in Fremont, Calif. Critical's customer service and support, engineering and development operations will remain in St. Charles. This acquisition, which is the first of several on MicroTel's agenda, strategically expands the present CXR product offering to include additional software-driven, user-friendly and cost competitive products expected to significantly broaden CXR's penetration of the installation and maintenance segment of the telecommunications marketplace. While CXR's existing Installation and Maintenance products are used extensively in the Central Office testing environment (which necessitates the use of a multi-function, all-in-one test instrument), Critical's products are primarily designed to service the test instrument needs at outside plant service installations, where lightweight, portable products requiring fewer functional testing features are required. Critical's product line is expected to have significant impact in this market segment. The acquisition will also allow MicroTel's French subsidiary, CXR, S.A. to utilize Critical's new, internally-produced test instruments in lieu of products presently acquired from third party manufacturers and then resold into the French telecommunications market. MicroTel also plans to distribute the Critical product line throughout Europe, as well as to the developing telecommunications markets of Latin America and Asia, in which it presently has no available product offering. MicroTel, through its wholly-owned subsidiaries CXR Telecom Corporation in Fremont, Calif. and CXR, S.A. in Paris designs, manufactures and markets electronic test instruments and data transmission equipment to the telecommunications industry, including telephone companies, interconnect carriers, private networks, banks, brokerage firms and government agencies. MicroTel's wholly-owned subsidiary, XIT Corp., with vertically integrated operations in the U.S., England and Japan, designs, manufactures and markets information technology products and input components, subsystem assemblies and hybrid microelectronics circuits for the international telecommunications, medical, industrial and military/aerospace markets. 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.
CONTACT: MicroTel James P. Butler 909/291-4321 or H.L. Lanzet Inc. Herbert Lanzet/Gerald Ortsman 212/687-0061
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