Mitec identifies new niche market - Helping smaller independent wireless operators significantly enhance performance at reduced cost

    MONTREAL, Aug. 6 /CNW Telbec/ - Mitec Telecom Inc. ("Mitec") (TSX: MTM),
a leading designer and manufacturer of mobile wireless, fixed wireless,
broadcast and satellite components has developed an exciting new approach for
telecom companies looking to enhance their network bandwidth and reduce
operating costs.
    Using some of its key core technologies, Mitec engineers, together with
Dryden Municipal Telephone System/Dryden Mobility (or DMTS/Dryden Mobility - have begun transforming the telecommunications infrastructure
for the remote Canadian city of Dryden, in Northern Ontario, into a
state-of-the-art network capable of delivering high quality service levels
that its growing subscriber base demands. The network had previously suffered
from performance issues that Mitec's equipment resolved. In addition, the
number of base station sites required was reduced, resulting in a significant
cost reduction.
    "The challenge small and/or remote cities face is that standard base
station telecom equipment typically does not scale well for geographically
dispersed areas with low populations," said Mitec President and CEO Dan
Piergentili. "Our approach will help small local operators not only meet their
network performance commitments, but exceed them. Our solution is compatible
with existing networks and it's a faster and cheaper solution for resolving
performance issues, a particularly valuable benefit in today's economy."
    There are over 1,000 such markets throughout North America, which can
benefit from Mitec's engineered solution which can on average triple regular
coverage levels.
    DMTS is extremely pleased with the results to date. Patrick Goldrup,
Network Administrator for the DMTS/Dryden Mobility said, "We were thrilled
with the performance of the equipment and the engineering support we received
from Mitec. It was a great team effort for which we could not have achieved
success without Mitec".
    The Dryden project, as well as some similar opportunities, is expected to
generate about $1,000,000 in revenue for Mitec over the next six months alone.
Its success opens up a significant new market for the Company in Canada and
the United States where a government initiative to accelerate broadband
deployment in underserved areas is underway. Small networks also exist in
thousands of rural areas around the globe. This upgrade represents a major new
market opportunity with independent telecom operators and resolves major
infrastructure challenges relating to coverage loss.

    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

    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.

For further information:

For further information: Mr. Jeffrey Mandel, Executive Chairman, and
Director, Investor and Corporate Relations, (514) 694-9000,; Source: Mitec Telecom Inc.

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