TELESTE CORPORATION’S MANAGEMENT INVESTS IN TELESTE’S SHARES AS PART OF THE MANAGEMENT INCENTIVE PLAN

TELESTE CORPORATION   STOCK EXCHANGE RELEASE	3.3.2010 AT 09:05                  


TELESTE CORPORATION'S MANAGEMENT INVESTS IN TELESTE'S SHARES AS PART OF THE     
MANAGEMENT INCENTIVE PLAN                                                       

The Board of Directors of Teleste Corporation has today decided on a new        
incentive plan directed to the members of the Teleste Management Group. The     
purpose of the plan is to commit the members of the Management Group to Teleste 
Corporation (ā€œTelesteā€) by encouraging them to acquire and hold Teleste's shares
and this way increase Teleste's shareholder value in the long run. Through this 
incentive plan, the members of the Management Group personally invest a         
considerable amount of their own funds in Teleste's shares. The directors       
finance their investments partly themselves and partly by a loan provided by    
Teleste. The actual owner risk will be carried out personally by the directors  
for the part of their personal investment in the plan.                          

For the purpose of the share ownership, the members of the Management Group will
establish a limited company named Teleste Management Oy (ā€œTeleste Managementā€), 
whose entire share capital they own. The intention of Teleste Management is to  
acquire a maximum total of 381,000 Teleste's shares from Teleste. The share     
acquisition will be financed by capital investments in Teleste Management by the
members of the Management Group, in the maximum total amount of approximately   
EUR 290,000, as well as by a loan provided by Teleste. Some of the members of   
the Management Group will finance their capital investments in Teleste          
Management by selling Teleste's shares they hold. After the plan has been       
implemented in full, the members of the Management Group will hold 2.1% of the  
Teleste's shares through Teleste Management.                                    

On the basis of authorization granted by the Annual General Meeting of          
Shareholders of Teleste on 7 April 2009, the Board of Directors of Teleste      
decided on a share issue against payment directed to Teleste Management to be   
formed. In the share issue, a maximum total of 381,000 new shares in Teleste    
will be offered for subscription by Teleste Management, in derogation from the  
shareholders' pre-emptive subscription rights. There are weighty financial      
reasons for the derogation from the shareholders' pre-emptive subscription      
rights as the shares to be issued in the share issue will be used for the       
implementation of the incentive and commitment plan of the members of the       
Teleste Management Group.                                                       

The subscription price of the new share is the trade volume weighted average    
quotation of TelesteĀ“s share on the NASDAQ OMX Helsinki Ltd. during 15          
February-26 February 2010, i.e. EUR 3.80. The subscription price is based on the
prevailing market price of Teleste's share. Teleste Management will pay the     
subscription price in cash upon subscription. The share subscription period is 3
March-26 March 2010. The subscription price will be credited to the reserve for 
invested unrestricted equity of Teleste. Right to dividend and other shareholder
rights will commence after the new shares have been entered into the Trade      
Register. The shares will be registered on the book-entry account of the        
subscriber and will be applied for public trading on NASDAQ OMX Helsinki Ltd    
after the shares have been entered into the Trade Register.                     

As part of the plan, the Board of Directors of Teleste has today decided to     
grant to Teleste Management an interest-bearing loan in the maximum amount of   
EUR 1,160,000 to finance the acquisition of Teleste's shares. The loan will be  
repaid in full by 1 July 2013, at the latest. Should the plan be continued by   
one year at a time in 2013 and in 2014, the loan period may be extended         
respectively. Teleste Management has the right to repay the loan prematurely at 
any time, and the obligation to repay the loan prematurely by selling the       
Teleste's shares it holds, in case the Teleste's share price exceeds a certain  
level determined in the plan, otherwise than occasionally.                      

The plan will be valid until summer 2013, at which time the plan is intended to 
be dissolved in a manner to be determined later. The plan may be dissolved,     
e.g., by placing Teleste Management into liquidation or by merging it with      
Teleste, or by otherwise selling the Teleste's shares held by Teleste           
Management. The plan will be continued by one year at a time, in case the       
Teleste's share price in April-May 2013 or in April-May 2014 is lower than the  
average share price which Teleste Management paid for its Teleste's shares.     

During the validity of the plan, the transfer of the Teleste's shares held by   
Teleste Management has been restricted. The share ownership in Teleste          
Management by the members of the Management Group will be valid until the plan  
is dissolved.                                                                   


Helsinki 2 March 2010                                                           



TELESTE CORPORATION                                                             

The Board of Directors                                                          




ADDITIONAL INFORMATION:                                                         
Mr Jukka Rinnevaara, CEO, Tel. +358 2 2605 866 or +358 400 747 488              
                                                                                

DISTRIBUTION:                                                                   
NASDAQ OMX Helsinki Ltd                                                         
                                                                                
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