SCHRODER INVESTMENT MANAGEMENT LIMITED?S HOLDING IN TELESTE EXCEEDS 5 PER CENT

TELESTE CORPORATION STOCK EXCHANGE ANNOUNCEMENT 7.8.2006 AT 13.00

SCHRODER INVESTMENT MANAGEMENT LIMITED’S HOLDING IN TELESTE
EXCEEDS 5 PER CENT

Notice of holding changes in accordance with chapter 2, section 10
of the securities market act:

Teleste Corporation has been informed that the holdings of
Schroder Investment Management Limited on behalf of its clients
has on 02 August 2006 increased over 5 per cent and that the
holdings now are 870 509 shares representing 5.01 per cent of the
share capital and voting rights of the company.

The breakdown of holdings by client name:

Client No.of ord Proportion Proportion
shares held of share of voting
capital rights

BNL European Small Caps 12 156 0.06 0.06
European Small Caps
Darta (Ras Asset Management) 35 294 0.20 0.20
European Small Caps Fund
Schroder European Smaller Cos Fund 137 740 0.79 0.79
Portfolio
Schroder Inst. Euro Smaller Cos Fd 68 811 0.39 0.39
Portfolio
Schroder International Selection Fd 559 083 3.21 3.21
European Smaller Companies
Schroder International Selection Fd 12 700 0.07 0.07
Global Smaller Companies
Schroder International Selection Fd 44 725 0.25 0.25
European Dynamic Growth
TOTAL 870 509 5.007 5.007

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

DISTRIBUTION:
Helsinki Exchanges
Media
www.teleste.com