TELESTE MOVES AHEAD BY ACQUISITIONS IN GERMAN NETWORK SERVICES MARKET

TELESTE CORPORATION  STOCK EXCHANGE RELEASE  31.12.2008  AT 12:00               


TELESTE MOVES AHEAD BY ACQUISITIONS IN GERMAN NETWORK SERVICES MARKET           

Teleste Corporation proceeds with development of its services business by       
acquiring three German cable network services companies. The companies          
concerned, specialising in upgrading and maintenance of cable and house         
networks, are MKS companies, Young-Net GmbH and Antel GmbH. The core regions of 
MKS and Young-Net include North Rhine-Westphalia, Lower Saxony and              
Rhineland-Palatinate in the Western and Central Germany, whereas Antel operates 
in the Southern region of Bavaria. The former principal owners - Volker Meyer at
MKS, Tobias Jung at Young-Net and Josef Würtz at Antel - will continue in their 
current managerial positions.                                                   

With these acquisitions Teleste will become one of the key service providers in 
cable networks business in Germany. Its main clientele consists of key German   
cable operators supplying cable network access to approximately 20 million      
end-customers. The acquired companies provide services for the operators both   
directly and through the previously established affiliate company Cableway.     
After these acquisitions Teleste's holding of Cableway will rise up to 50%.     
Cooperation with Cableway enables making available a comprehensive range of     
services required by the major 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 the acquired services companies stand at approximately EUR
30 million with their business profitability on a sound level. The impact of    
this purchase to Teleste's net sales for 2009 is estimated to be more than EUR  
30 million. The transaction is expected to improve Teleste's profitability for  
2009 with no essential effect on Teleste's equity ratio; on the other hand,     
gearing ratio will increase to some degree. The acquisitions increase the number
of Teleste personnel by 315. The consolidated equity of the acquired companies  
at the time of the deal equals about EUR 3.5 million with the balance sheet     
total amounting to approximately EUR 13.5 million. The initial purchase price of
the companies share capital stands at EUR 8.7 million. This price may increase  
depending on the development of the net profit of the acquired companies in the 
next two years. The initial purchase price will be paid in cash with any        
potential additional price partly in Teleste shares. The transaction becomes    
effective on 1 January 2009.                                                    

The objective is to develop network services provided for the operators locally 
through the acquired companies by incorporating them in Teleste's overall       
service business strategy. For this the core expertise and local nature of these
companies create favourable conditions. Moreover, the companies concerned are   
internal customers for Teleste's cable network equipment providing at the same  
time distribution channels into German cable operator market. Teleste's         
objective is to create a comprehensive product range in support of its service  
offering.                                                                       


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  
2007 the Group's net sales totalled EUR 125.1 million. At the year-end the Group
employed on average 672 persons. The company runs about 30 offices worldwide and
more than 91% of Teleste's net sales are generated outside Finland. The company 
is listed on the OMX Nordic Exchange in Helsinki.                               
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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