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MITEC TELECOM GRANTED MCTO

^{Published on 2010-09-20 06:21:21 - Market Wire}
 

MONTREAL, Sept. 20 /CNW Telbec/ - Mitec Telecom Inc. ("Mitec") (TSX: MTM) announced today that further to its September 15, 2010 announcement relating to a delay in filing of its first quarter, fiscal 2011 interim consolidated financial statements, related management's discussion and analysis and CEO and CFO Certificates (the "Required Filings"), it has now been granted an order from the Autorité des marchés financiers, being the principal regulator, for a management cease trade order ("MCTO").

Mitec has been delayed in the preparation of its Required Filings, in part due to the status of management actions that would have impacted the accuracy of the going concern note on its first quarter financial statements and related MD&A. Mitec is in the process of remediating the default, as the results of these actions become more settled over the next several days or weeks. Mitec expects that it will be able to file the Required Filings on or before September 30, 2010 and has been advised that the Toronto Stock Exchange does not object to this delay.

An MCTO does not affect the ability of persons who have not been directors, officers or insiders of Mitec to trade securities of the Mitec. Mitec intends to satisfy the provisions of the Alternative Information Guidelines as set out in the National Policy 12-203 for as long as Mitec remains in default, including the issuance of bi-weekly default status reports, each of which will be issued in the form of a press release.

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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