The purchase price included XETA's assumption of the surviving obligations. To ensure a seamless transition for the distributors' benefit, HITEL provided a transition fee to XETA and will provide transition services. The acquired business is expected to generate future revenue for XETA in the form of technical support fees, software upgrades and parts sales.

"XETA has been a very strong, full service HITEL distributor for 13 years," said Greg Forrest, XETA's President and COO. "We are pleased to be able to expand our role to work with all HITEL distributors in continuing to provide outstanding support of HITEL's PBX products, and we are committed to upholding the high service standard that HITEL has set over the years."

XETA will be prepared to discuss the acquisition during its second quarter results conference call scheduled for May 25, 2006, details of which will be included in the second quarter news release to be issued on May 24, 2006.

Source: Business Wire