Mitec Telecom to acquire Keragis Corporation - Purchase Brings Market Opportunities in U.S. Military and Communications

    MONTREAL, Aug. 15 /CNW Telbec/ - Mitec Telecom (TSX: MTM) has entered
into an agreement to acquire California-based Keragis Corporation, a leading
producer of unique, next generation amplifier solutions for commercial and
military communications and radar systems.
    Keragis' products will provide Mitec with leading, state-of-the-art, high
power Solid State Power Amplifier (SSPA) technology for use in its current
communication products. It will also allow Mitec to expand its customer base
to include the U.S. military arena where Keragis enjoys an excellent
    "Keragis' innovative amplifier solutions combined with Mitec's
manufacturing and product development capability throw the door wide open for
a whole new series of technology-leading products in industries with huge
business potential," said Dan Piergentili, Mitec's President and Chief
Executive Officer.
    Solid state amplifiers have significant advantages over the traveling
wave tube amplifiers currently used in satellite systems and military and
radar equipment. The replacement tube market alone is valued at over
$1 billion.
    "Now that Mitec's financial affairs are in order we intend to put more
focus on strategic acquisitions as well as revenue and profitability growth,"
said Mr. Piergentili. "The Keragis acquisition provides Mitec with exciting
new opportunities that are in line with our current growth strategy."
    The cash and stock transaction is expected to close by the end of the
month. The closing of the transaction is subject to standard conditions
including due diligence and regulatory approvals. The terms of the transaction
were not disclosed.

    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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