TELESTE SIGNS A SIGNIFICANT FRAME AGREEMENT WITH TELENET FOR THE DELIVERY OF OPTICAL TRANSMISSION EQUIPMENT

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TELESTE CORPORATION  STOCK EXCHANGE RELEASE  28.8.2008  AT 10:30                


TELESTE SIGNS A SIGNIFICANT FRAME AGREEMENT WITH TELENET FOR THE DELIVERY OF    
OPTICAL TRANSMISSION EQUIPMENT                                                  

Teleste has signed a frame agreement with Telenet, the major cable operator in  
Belgium having 2.4 subscribers online. The value of the frame agreement is      
estimated to be several million euros. Under this agreement Teleste delivers    
equipment that will bring the fiber deeper into the network with the intention  
to increase both the upstream and the downstream capacity. The need for         
additional capacity is driven by the success of Telenet's Broadband Internet,   
digital-TV and video on demand services. The deliveries consist of a range of   
HDO modules and AC nodes.                                                       

With this agreement Teleste continues its role as one of the Telenet's key      
suppliers. The total project duration is 4-5 years and the first delivery is    
scheduled for the 3rd quarter of 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 91% of Teleste's net sales are generated outside    
Finland. The company is listed on the OMX Nordic Exchange Helsinki.             
Visit www.teleste.com for more information.                                     


TELESTE CORPORATION                                                             

Jukka Rinnevaara                                                                
CEO                                                                             


ADDITIONAL INFORMATION:                                                         
Mr Jukka Rinnevaara President and CEO, tel +358 2 2605 866 or +358 400 747 488  


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OMX Nordic Exchange Helsinki                                                    
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