Mitec Telecom Announces Continued Support From Bankers

    Company Also Receives Letter of Intent From Major Institution

    Mitec Telecom Inc. (TSX: MTM), a leading designer and provider of wireless network products for the telecommunications industry, today announced that it has successfully renegotiated key conditions relating to its banking credit facility. Mitec management stated this is an essential pre-requisite in achieving the required equity and expressed confidence that this financing will be forthcoming.

    The revised credit facilities, which include the suspension or modification of the financial covenants until October 31, 2003, are conditional upon the Company closing at least Cdn $5 million in additional funding by way of new share capital paid in cash or new subordinated debt by January 31, 2003.

    In addition, Mitec stated it has received a letter of intent from a major institution to provide $5 million in subordinated debt and loan guarantees thereby further improving the Company's liquidity. This financing is subject to certain conditions including the Company securing an equivalent amount in equity.

    "Our bankers have been positive and supportive of our business plan. This agreement sends an important message to potential investors and allows us to move on to the next milestone," said Mitec CFO, Keith Findlay.

    Mitec President and CEO, Rajiv Pancholy, who assumed his position on October 29, 2002, stated: "The fact that we were able to provide our lenders with sufficient comfort in such a short period of time to reach this important agreement is a clear testament to the confidence they have in our Company. The positive position adopted by our bankers now allows Mitec to move forward most concretely. Our first priorities remain to grow profitability and to reduce debt. While we remain cognizant of the risks associated with our business plan, we believe our financial objectives are realistic and attainable."

    ABOUT MITEC TELECOM
    Mitec Telecom is a leading designer and manufacturer of products for the telecommunications industry. The Company sells its products worldwide to network providers for incorporation into high-performing wireless networks used in voice and data/Internet communications. Additionally, the Company provides value-added services from design to final assembly and maintains test facilities covering a range from DC to 60 GHz. Headquartered in Montreal, Canada, the Company also operates facilities in the United States, Sweden, United Kingdom, China and Thailand.

    Mitec Telecom Inc. is listed on the Toronto Stock Exchange under the symbol MTM. On-line information about Mitec is available at www.mitectelecom.com  

# # #

Contact:
Keith Findlay
Executive Vice President, Finance and Chief Financial Officer
(514) 694-9000 Ext. 2186
kfindlay@mitectelecom.com 

Rick Leckner
Maison Brison
(514) 731-0000
 brison1@maisonbrison.com