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MITEC RECEIVES ADDITIONAL ORDERS FOR NEXT GENERATION 4G NETWORK

^{Published on 2010-10-20 05:50:29 - Market Wire}
 

MONTREAL, Oct. 20 /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 received additional orders for its next generation Long Term Evolution ("LTE") 4G components from a major global telecom supplier. These orders, which are a continuation of a previously announced supply agreement for which Mitec was selected as the preferred vendor, will continue to be delivered for network trial purposes.

To date in fiscal 2011, these orders have exceeded forecasted demand. Mitec is also preparing for a second phase, involving a higher capacity derivative of its existing LTE product for the same market, which is currently being manufactured under volume production guidelines as a result of the size and depth of the related trials.

Mitec reported in June 2010 that it anticipated that this product line would represent a significant source of revenue for Mitec over the next several years. The components are being produced at the Corporation's China facility and the customer involved is one of the world's largest and fastest growing telecom suppliers.

Many telecom companies, in Canada, the U.S. as well as developing countries, have recently begun installing LTE technology for trial purposes, further evidence of the demand for wireless network connectivity, since LTE provides unprecedented flexibility and capacity to the user. LTE technology also enables operators to meet the growing demand and for next generation mobile computing devices such as notebook, netbook and tablet computers as well as smartphones, making it possible for enhanced functionality including multimedia and high definition video applications to be delivered to consumers more cost effectively.

"We are very pleased to be involved in this growth area and have focused our China operations on scaling up for volume production in this area as these trials continue to expand globally", said Dan Piergentili, Mitec's President and CEO. "With continued orders and volume production capability, we are looking forward to achieving both our revenue and gross margin targets for this product line going forward as the trials convert to commercial market orders", he said.

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.