On November 6, 2009 XETA Technologies Inc. entered into a loan agreement for a senior secured revolving line of credit with Commerce Bank, N.A. The agreement replaces the company's existing credit facility with Bank of Oklahoma, N.A. The agreement, which has a twelve month maturity, provides $8,500,000.00 to fund acquisitions and for working capital purposes, including the issuance of commercial letters of credit, and is secured by a lien on the company's assets. The rate of interest is the greatest of the LIBOR Rate plus 3.00%, or 4.50% per annum. The agreement is governed by a borrowing base, defined as 75% of eligible receivables plus 50% of eligible inventory (subject to a $2,000,000 cap), all as further defined in the agreement, plus $2,000,000 (representing 50% of the accepted appraised value of the company's real estate). The agreement contains covenants and restrictions that require the company to maintain (i) a fixed charge coverage of not less than 1.25:1.00, (ii) a funded debt to EBITDA ratio no greater than 2.50:1.00 and (iii) a minimum tangible net worth of $10,000,000.00. The agreement requires bank approval for acquisitions in excess of $2,000,000.00. It allows for stock repurchases pursuant to the company's repurchase program announced October 29, 2008.

XETA Technologies Inc. announced that Jerry Moore has joined the company in the newly created position of Executive Director of Information Technology. In his position, Moore will be responsible for all information technology management, planning and deployment. Moore will also assist in the development and support of the company's long-term strategic plans and report directly to Greg Forrest, CEO and President of XETA Technologies. Prior to joining XETA Technologies, Moore was Chief Information Officer for Tulsa Technology Center.

XETA Technologies Inc. announced that it has been selected by Siemens Enterprise Networks to provide technical support services for the U.S. operations of a global pharmaceutical company. XETA provides services on behalf of Siemens and other systems integrators, original equipment manufacturers and network service providers. Beginning October, 2009, XETA will provide technical support, field support, and help desk services for the customer's communications and IT infrastructure under a three-year contract. XETA expects annual revenue from the contract to exceed $1 million per year.