KOREA?S SECOND LARGEST OPERATOR HANARO TELECOM DEPLOYS TELESTE?S 100 MBIT/S ETTH SOLUTION

TELESTE CORPORATION STOCK EXCHANGE RELEASE 15.12.2006 AT 11.25

KOREA’S SECOND LARGEST OPERATOR HANARO TELECOM DEPLOYS TELESTE’S 100 MBIT/S ETTH
SOLUTION

The Teleste 100 Mbit/s EttH solution has passed acceptance testing at Hanaro
Telecom of South Korea and the solution has already been deployed in the network
for trial customers.

Teleste’s Korea partner Cableway Communications, which is responsible for the
marketing and the localization of the EttH products in Korea, has entered into a
frame agreement with Hanaro Telecom to supply the 100 Mbit/s EttH products
throughout the Hanaro Telecom networks.

The selection by Hanaro Telecom, which is operating in one of the worlds most
advanced and competitive broadband markets, underlines the benefits of the
100MBps EttH solution for next generation broadband services.

Teleste has received an initial order of 4.5 million euros from Cableway
Communications for deliveries during the first quarter of 2007.

Hanaro Telecom Inc. is the second largest telecom operator in Korea with
over 13 million homes passed and about 5.4 million subscribers. Hanaro Telecom
offers broadband and voice services but has also recently launched hanaTV,
an advanced IPTV solution with extremely encouraging subscriber uptake.

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 2005 the group's net sales in continuing business totalled EUR
82.6 million and the group employed 557 persons at the year-end. The company has
approximately 30 offices world-wide. Close to 90% of Teleste's net sales are
generated outside Finland. The company is listed on the main list of Helsinki
Exchanges. Visit www.teleste.com for more information.

TELESTE CORPORATION

Jukka Rinnevaara
CEO

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

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Helsinki Exchanges
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www.teleste.com