TELESTE RECEIVED AN ORDER FROM DEUTSCHE TELEKOM

Teleste Corporation Stock Exchange Release 11.05.1999 at 15.45 1(2)

TELESTE RECEIVED AN ORDER FROM DEUTSCHE TELEKOM

Teleste has received an order from Deutsche Telekom, the largest
European cable operator, with more than 17 million connected
subscribers, for upgrading one of two parts of the Berlin pilot
project, which serves more than 500.000 subscribers. This order will be
an important reference for Teleste in the future.

Teleste, with lots of experience in the high quality modular designed
cable network nodes and amplifiers and on the other hand the German co-
operation partner, BKTel Communications GmbH with experience in
optical parts of the networks and as a supplier for optical systems to
Deutsche Telekom in the past, are chosen after a public tendering
given out in February.

Teleste's sales subsidiary in Germany, Teleste GmbH, with highly experienced staff of
ten people played an important role in winning the contract.

With a tight time schedule of deliveries, commissioning, installation
and acceptance tests, the first equipment has to be shipped and
installed in August 1999.

The complete upgrading of the Network from 450 MHz to 862 MHz, which
is based on 1550 nm fibre systems adds the capacity of the network and
is including bi-directional data transmission for interactive
services.

Timo Salokoski, Vice President Access Systems: “The order from
Deutsche Telekom is a big success for Teleste and its partner. Months
of hard work is behind. Now the challenge is in front of our
engineers, but we are convinced to succeed. The order of Deutsche
Telekom confirms our company's strategy; the growing future of cable
networks in broadband transmission for digital TV and the success of
the new interactive internet-based services via the cable.ö

Teleste is an international technology group founded in 1954, which is
specialized in broadband data communication and multimedia
environments for language learning. All divisions are among the
leading companies in their businesses. The Group's net sales year 1998
was 66,1 million EUR, operating profit 9,4 million EUR, net result 7,0
million EUR and return on capital employed 37,8 %. The Group employed
581 persons at the year end 1998. The company is listed on the main
list of Helsinki Exchanges.

ADDITIONAL INFORMATION:
Mr. Timo Salokoski, Vice President, Access Systems division, tel.+358
2 2605 850 or +358 400 787 325
Mr. Antti Salminen, CFO, tel. +358 2 2605 725 or +358 40 535 1216

Teleste Corporation

Timo Toivila
CEO

Internet: This release can be found from Teleste's home pages
www.teleste.com

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