TELESTE CORPORATION STOCK EXCHANGE RELEASE  16.10.2008  AT 10:00                

SHARES SUBSCRIBED WITH TELESTE 2002B STOCK OPTIONS                              

A total of 100,946 shares in Teleste Corporation have been subscribed for with  
the stock options 2002B after the increase of shares registered on 8 September  
2008. In accordance with the Terms and Conditions, the share subscription price 
with the stock options 2002B stock options is EUR 1.85/share.                   

The share subscription period with the stock options 2002B commenced in February
2006. The stock option program was approved by the Annual General Meeting on 8  
April 2002.                                                                     

These shares, 100,946 in total, have been entered into the Trade Register on 16 
October 2008. As a result of the share subscriptions, the number of shares was  
increased by a total of 100,946 new shares. The share subscription price will be
recorded under the invested non-restricted equity fund.                         

After the increase of 100,946 shares registered on 16 October 2008, the number  
of Teleste shares is 17,805,590. The shares have no nominal value.              

The holders of the new shares are entitled to all shareholder rights from the   
registration date, i.e. 16 October 2008. Listing of the new shares will be      
applied for on the NASDAQ OMX Helsinki together with the old shares beginning 17
October 2008.                                                                   

Teleste is an international technology group founded in 1954, which is          
specialized in broadband data communication systems and solutions. The group is 
divided into two Strategic Business Units: Broadband Cable Networks and Video   
Networks. Broadband Cable Networks serves cable operators and a major part of   
its business activities are handled through direct customer contact. Video      
Networks supplies solutions for optical signal transmission and video network   
management software solutions for video surveillance and a major part of its    
business is handled through system integrators. Both Business Units are among   
the leading providers in their market areas and are globally recognized for     
their know-how and ability to produce technically cutting edge solutions year   
after year. In 2007 the group's net sales totalled EUR 125.1 million and the    
group employed 672 persons at the year-end. The company has approximately 30    
offices world-wide and over 90% of Teleste's net sales are generated outside    
Finland. The company is listed on the NASDAQ OMX Helsinki Ltd.                  
Visit for more information.                                     

TELESTE CORPORATION                                                             

Jukka Rinnevaara                                                                

ADDITIONAL INFORMATION:                                                         
CFO Erja Saarikoski tel. +358 2 2605 685 or +358 40 550 9677                    

NASDAQ OMX Helsinki