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Microtel International Subsidiary Xcel Power Systems Ltd. Has Been Awarded A Contract in Excess Of $750,000 By MBDA Missile Systems

Microtel International Subsidiary Xcel Power Systems Ltd. Has Been Awarded A Contract in Excess Of $750,000 By MBDA Missile Systems

Business Editors & High-Tech Writers

RANCHO CUCAMONGA, Calif.–(BUSINESS WIRE)–May 16, 2002

Microtel International Inc. (OTCBB:MCTL), an international manufacturer of electronic components and telecommunications equipment, today announced that its United Kingdom subsidiary Xcel Power Systems Limited one of Europe’s leading suppliers of power conversion products to the Defense and Avionics market has just been awarded a contract by MBDA Missile Systems (MBDA) in excess of $750,000. The contract is for a family of low voltage power supplies for the recently announced Jernas Short-Range Air Defense System which the Malaysian government is procuring from MBDA.

MBDA is the new tri-national guided weapons company created on December 19, 2001 from the merger of Matra BAe Dynamics, Aerospatiale Matra Missiles and Alenia Marconi Systems. With annual sales of EURO 3 billion and a backlog of EURO 13 billion, MBDA is Europe’s leading guided weapons group.

Commenting on the award of this contract Xcel Power Systems’ Managing Director, Graham Jefferies said: “We are please to be awarded this contract which justifies the technical and commercial support we have given to an MBDA partner over the past few years, even prior to the formation of MBDA. And, we look forward to other contract awards as MBDA continues to capture other air defense contracts. This contract is further evidence of Microtel’s rapidly growing aerospace, defense and military business which, in the year 2002, will exceed the revenue of our telecommunications business.”

About Microtel International

Microtel International Inc. is a worldwide manufacturer of electronic components and telecommunications equipment. Microtel International’s electronic components and defense group, which includes XET Corporation and its international subsidiaries, provides custom power conversion products and digital switches to the electronic components global markets primarily used for aerospace, military and industrial applications. Microtel’s telecommunications group, consisting of CXR Telcom Corporation and CXR S.A., provides testing, transmission, and network access equipment to the North American and European telecommunications industry. Founded in 1983, the Company operates out of facilities in the U.S., France, the U.K. and Japan. As of March 31, 2002, Microtel International employed a total of 221 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, projected new contracts by MBDA or the award of any new business by MBDA to Microtel’s Xcel Power Systems LTD subsidiary projected growth in other defense related electronic components markets, the ability of Microtel to expand its presence in these markets, trends in Microtel’s financial condition and results of operations, Microtel’s ability to distinguish itself from its current and future competitors, the continued demand for Microtel’s products, 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 Form 10-K for the year ended December 31, 2001 and the Company’s Form 10-Q for the quarterly period ended March 31, 2002.

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