TELESTE BECOMES NUMBER ONE SERVICES PLAYER IN GERMAN CABLE NETWORK MARKET

TELESTE CORPORATION   STOCK EXCHANGE RELEASE	  1.7.2009  AT 08:00 


TELESTE BECOMES NUMBER ONE SERVICES PLAYER IN GERMAN CABLE NETWORK MARKET       

Teleste Corporation has taken yet another step in its development of services   
business by acquiring a fourth services company in Germany, AVC Systemhaus GmbH,
mainly specialising in upgrading and maintenance of cable and house networks.   
The company is primarily operational in the Berlin area and the Eastern part of 
Germany with its headquarters in the city of Cottbus. Former owners Hans-Joachim
Dosdall, Michael Schumann and Steffen Kiessling continue in the company         
management.                                                                     

With this acquisition Teleste becomes the most significant technical service    
company in the German cable networks business. Its main clientele consists of   
German cable operators supplying cable network access to approximately 20       
million end-customers. The acquired company provides services for the operators 
both directly and through the previously established affiliate company Cableway.
With the acquisition Teleste Corporation's holding of Cableway will increase up 
to 62.5%. In the same connection Teleste made an agreement with the other owner 
of the company for purchasing its 12.5% share bringing Teleste's holding in     
Cableway up to 75%. Cableway provides comprehensive services for major German   
cable operators. As the single biggest cable network country in Europe, Germany 
constitutes strategically one of Teleste's most important market areas.         

In 2008, net sales of AVC Systemhaus GmbH stands at approximately EUR 10 million
with its business profitability on a sound level. The impact of this acquisition
to Teleste's net sales for 2009 is estimated to be approximately EUR five       
million. Moreover, with Teleste becoming the majority shareholder in Cableway   
the company will be consolidated into Teleste Corporation in its entirety. The  
additional impact of Cableway to Teleste's net sales in 2009 is estimated to    
approximately EUR four million. The acquisition of AVC is expected to improve   
Teleste's profitability for 2009, although it will have no significant impact on
Teleste's equity ratio. Gearing will increase to some degree. Cableway will not 
have a significant impact on Teleste's result. Acquisition of AVC and the       
majority holding in Cableway will increase the number of Teleste personnel by   
250. The contract price will not be disclosed by the parties. The transaction   
becomes effective on 1 July 2009.                                               

Side by side with its strong emphasis on product offering Teleste develops its  
technical network services provided for the operators. Teleste's strategy is to 
become the leading comprehensive technology and services partner to the cable   
operators.                                                                      

Founded in 1954 Teleste is an international technology group specialising in    
broadband data communication systems and solutions. The Group is divided into   
the following strategic Business Units: Customers of Broadband Cable Networks   
include cable operators and majority of the business is carried out through     
direct customer contacts. Video Networks supplies solutions involving optical   
signal transmission and video network management software solutions for video   
surveillance. Major part of its business is conducted through system            
integrators. Both Units are ranked among the leading providers in their         
respective market areas and are recognised globally for their know-how and      
ability to present technically cutting edge solutions on a continual basis. In  
2008 the Group's net sales totalled EUR 109 million. At the year-end the Group  
employed on average 677 persons. The company runs about 30 offices worldwide and
more than 90 % of Teleste's net sales are generated outside Finland. Teleste    
shares are listed on the NASDAQ OMX Helsinki Oy.                                
For additional information access www.staging.staging.staging.staging.teleste.com                               


TELESTE CORPORATION                                                             

Jukka Rinnevaara                                                                
CEO                                                                             


FOR MORE INFORMATION:                                                           
CEO Jukka Rinnevaara, tel +358 2 2605 866 or +358 400 747 488                   

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