Mitec closes U.S. operations and announces strategic alliance with Broadband Wireless LLC

    MONTREAL, Jan. 31 /CNW Telbec/ - Mitec Telecom announced today that it is
closing its U.S. operations, based in Reno, Nevada, as part of continuing
consolidation efforts to return the Company to profitability. Mitec will
concentrate all North American operations in its Montreal facility. This
decision will reduce expenses and align operations in keeping with
management's strategy of ensuring a profitable and highly efficient operation.
    Mitec also announced a strategic alliance with Broadband Wireless to
develop Multi-Carrier High-Power Amplifiers (MCPA) for wireless
infrastructures. Mitec will join forces with Broadband Wireless which has
proprietary MCPA technology. This technology will be combined with Mitec's
filter and system design capability to create a new line of coverage-solution
products aimed at CDMA operators. These solution-based products consist of
Tower Mount Multi-carrier Boosters (TMB), High-Power Multi-carrier Distributed
Antenna Systems (DAS) and very low-noise Tower Mount Amplifiers (TMA). This
new line of products will allow Mitec access and address a growing demand from
operators to solve a variety of coverage problems. As demand for wireless
grows, broadband coverage is becoming a critical factor. These products will
provide operators the ability to provide coverage that traditional base
stations cannot solve.

    About Broadband Wireless LLC

    Broadband Wireless LLC, a privately held company based in Reno, Nevada,
supplies wireless amplifiers products and is considered a leading designer of
ultra-compact MCPA products.

    About Mitec Telecom

    Mitec Telecom 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. The Company 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, the Company also operates a facility in China.
    Mitec Telecom Inc. is listed on the Toronto Stock Exchange under the
symbol MTM. On-line information about Mitec is available at

    Except for historical information provided herein, this press release may
contain information and statements of a forward-looking nature concerning the
future performance of the Company. These statements are based on suppositions
and uncertainties as well as on management's best possible evaluation of
future events. Such factors may include, without excluding other
considerations, fluctuations in quarterly results, evolution in customer
demand for the Company's products and services, the impact of price pressures
exerted by competitors, and general market trends or economic changes. As a
result, readers are advised that actual results may differ from expected
    %SEDAR: 00002350EF

For further information:

For further information: Dan Piergentili, President & CEO, Mitec
Telecom, (514) 694-9000; Bruno Dumais, Vice President, Finance & CFO, Mitec
Telecom, (514) 694-9000

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Mitec Telecom Inc.

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