TELESTE CORPORATIONSTOCK EXCHANGE RELEASE 8.3.1999 AT 16.30 1(3)
The Board of Directors of Teleste Corporation has decided in a meeting
on 8.3.1999 to file an application for the Company's shares to be
taken for public trading on the Main List of the Helsinki Stock
TELESTE CORPORATION INTENDS TO LIST ON THE HELSINKI STOCK EXCHANGE
Teleste Corporation that specialises in broadband telecommunication
and multimedia based learning systems intends to file an application
for the Company's shares to be taken for public trading on the Main
List of the Helsinki Stock Exchange if the sale of the Company's
shares in the intended offering materialises. It is the intention that
after the allocation of the shares sold in the intended offering,
public trading in the Company's shares would immediately start on the
Pre List of the Helsinki Stock Exchange and after the transfer to the
Book-Entry Securities System, the shares would be traded on the Main
list of the Helsinki Stock Exchange.
BACKGROUND AND PURPOSE OF THE LISTING
The main purposes of the listing include a wider distribution of
ownership in the Company's shares and the creation of a new financing
source to support the growth of the business.
TIMETABLE FOR THE INTENDED OFFERING
12.3.1999 The Board of Directors decides on filing the listing
application with the Helsinki Stock Exchange and the terms and
conditions of the offering
MEASURES UNDERTAKEN PRIOR TO THE ANTICIPATEDLISTING
At an Extraordinary General Meeting 27.1.1999 Tero Laaksonen was
appointed to the Board of the Directors.
At the Annual General Meeting of Teleste Corporation among other
things the nominal value per share was changed from FIM 10 to EUR 0.40
on 9.2.1999. As a result of the conversion and the associated
rounding the Company's share capital was reduced by EUR 327,517.06 to
EUR 6,400,000TELESTE. Subsequent to the change in nominal value, the
Company has 16,000,000 million shares with a nominal value per share
of EUR 0.40. The Board of Directors was authorised to decide upon an
increase in share capital in one or several subscriptions of new
shares in the Company deviating from the shareholders' rights to
subscribe for new shares. Consequently the share capital can be
increased in total by a maximum of EUR 1,280,000 with a corresponding
change in the number of shares of 3,200,000 with a nominal value of
EUR 0.40. The authorisation expires within one year from the date of
the Annual General Meeting.
At the Board Meeting on 5.3.1999 it was decided that the shares will
be in the Finnish Book Entry Securities System from 11.3.1999.
Prior to the intended offering the share capital of Teleste
Corporation is distributed as following: Sponsor Fund I Ky (97,8%),
Timo Toivila (0,8%), Mikael von Frenckell (0,5%), Matti Suutarinen
(0,4%), Olli Anttila (0,3%), Sponsor Capital Oy (0,2%) and Juuso
The shareholders' agreements currently in place will be dissolved in
conjunction with the listing of the Company's shares.
DESCRIPTION OF TELESTE GROUP
Teleste, founded in 1954, is an international technology Group
specialising in broadband telecommunication and multimedia
environments for language learning. The Group conducts its business
through independent companies. The business of the Group is divided
into three separate divisions, Teleste Access Systems, Teleste
Educational and Teleste Home Networks.
Teleste Access Systems is Europe's leading technology developer and
systems and equipment supplier for broadband cable networks. The cable
networks are able to simultaneously transfer video, sound and data bi-
directionally. Teleste Access Systems is also a leading developer and
provider of signal transfer equipment for surveillance networks.
Teleste Educational is a leading developer and supplier of analogue
and analogue/digital language learning environments in the world.
Teleste Home Networks produces equipment for TV signal distribution
and control for home and business environments in the UK.
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
In the financial year ended 31.12.1998, the Group's turnover was FIM
393.0 million (1997 : 349.3) which was FIM 43.7 million (13%) higher
than the year before. In the same financial year operating profit was
FIM 55.7 million (1997 : 26,9), which was FIM 28,8 million (107%)
higher than the previous year. Profit before extraordinary items
increased 115% to FIM 52.5 million (1997 : 24,4 million). Net profit
for the Group was FIM 41.8 million (1997 : -13,2 million) and earnings
per share before extraordinary items was FIM 2.27 (1997 : 1.11).
Teleste Corporation, CEO Timo Toivila, tel. 02 2605 866 or 0400
CFO Antti Salminen, tel. 02 2605 725 or 040 535 1216
Enskilda Securities AB, Director Antti Mäkinen, tel. 09 616 28120 or
050 5611 501
Internet: This release can be found from Teleste's home pages