THE INCREASE IN SHARE CAPITAL OF TELESTE CORPORATION HAS BEEN REGISTERED

TELESTE CORPORATION STOCK EXCHANGE RELEASE 31.03.1999 AT 13.15 1 (1)

THE INCREASE IN SHARE CAPITAL OF TELESTE CORPORATION HAS BEEN
REGISTERED

The increase in share capital of Teleste Corporation associated with
the employee offering has been registered in the trade register today
31.3.1999. In the Combined Offering 65,000 new Shares with a nominal
value of EUR 0.40 of Teleste Corporation were issued After the
registration the paid in share capital of the company is EUR 6,426,000
divided between 16,065,000 shares.

After the Combined Offering , Sponsor Fund I Ky's (trade register
number 717.973) ownership of the combined share capital and associated
votes decreased on 30.3.1999 from 97.8 % to 41.5 %.

Teleste Corporation

Timo Toivila
CEO

FURTHER INFORMATION

Teleste Corporation, CEO Timo Toivila, tel +358 2 2605 866 or +358
400 630 484
CFO Antti Salminen, tel +358 2 2605 725 or +358 40 535 1216

DISTRIBUTION
Helsinki Stock Exchange
Central Media