MITEC SIGNS $500K FINANCING AND ENGAGES PALOS MANAGEMENT INC. AS FINANCIAL
ADVISOR

MONTREAL, Oct. 14 /CNW Telbec/ - Mitec Telecom Inc. ("Mitec") (TSX: MTM), a leading designer and manufacturer of mobile wireless, fixed wireless, broadcast and satellite components, announced today it has entered into a term loan facility of $500,000. Participants in the financing included Mitec's President and CEO, Dan Piergentili and its Executive Chairman, Jeffrey Mandel, the Palos Capital Pool L.P. and a Montreal-based private investment company.

The purpose of the financing is to support immediate cashflow requirements Mitec is facing as a result of its increased backlog. Mitec also announced today that has engaged Palos Management Inc. ("Palos") as exclusive financial advisor to provide capital raising services on best efforts basis to Mitec.

"After reviewing Mitec's various business units against the company's current stock price and market capitalization, it became very evident that Mitec is substantially undervalued", commented Hubert Marleau, President of Palos.

"Mitec's management team, supported by various advisors and directors, has been working to remedy this situation over the past year, however on occasion anomalies occur with respect to micro-cap public companies whereby it is extremely difficult to execute value creation strategies even when the underlying business is performing," said Mr. Marleau.

"While Mitec has been facing challenges as it continues to work with its suppliers, we believe that this immediate injection of capital, along with various other initiatives currently underway, should provide satisfactory evidence that Mitec is well positioned to achieve its objectives", said Mitec's Executive Chairman Jeffrey Mandel.

About Mitec Telecom Inc.

Mitec is a leading designer and provider of radio frequency (RF) products for the telecommunications and satellite communications industries, as well as a variety of other sectors. Mitec sells its products worldwide to network providers for incorporation into high-performing wireless networks used in voice and data/internet communications. Headquartered in Montreal, Canada, Mitec also operates facilities in California and China. Mitec is listed on the Toronto Stock Exchange under the symbol MTM. On-line information about Mitec is available at www.mitectelecom.com.

Due to confidentiality provisions, Mitec is generally not able to disclose the names of its major customers or the financial data related to sales transactions. Certain statements in this release, including statements regarding future results and performance, are forward-looking statements based on current expectations. The accuracy of such statements is subject to a number of risks, uncertainties and assumptions that may cause actual results to differ materially from those projected, including, but not limited to, the effect of general economic conditions, decreases in demand for Mitec's products, fluctuations in selling prices and adverse changes in general market and industry conditions and other factors listed in Mitec's public filings with the appropriate securities regulatory authorities.

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For further information: Mr. Jeffrey Mandel, Executive Chairman and Director, Investor and Corporate Relations, Tel.: [phone], [email protected]; Source: Mitec Telecom Inc.