SHARES SUBSCRIBED WITH TELESTE 2002A AND 2002B STOCK OPTIONS IN TELESTE CORPORATION

TELESTE CORPORATION STOCK EXCHANGE ANNOUNCEMENT 20.11.2006 AT 10.00 1(1)

SHARES SUBSCRIBED WITH TELESTE 2002A AND 2002B STOCK OPTIONS IN TELESTE
CORPORATION

A total of 2,000 shares in Teleste Corporation have been subscribed for with the
Teleste 2002A stock options and a total of 450 shares with 2002B stock options
after the increase in the share capital registered on 14 September 2006. In
accordance with the Terms and Conditions, the share subscription price with the
Teleste 2002A stock options is EUR 6.95 and 2002B stock options EUR 2.29.

The share subscription period with the Teleste 2002A stock options commenced in
February 2005 and with the Teleste 2002B stock options in February 2006. The
stock option program was approved by the Annual General Meeting on 8 April 2002.

These shares, 2,450 in total, have been entered into the Trade Register on 20
November 2006. As a result of the share subscriptions, the share capital of
Teleste was increased by a total of EUR 980.00 and the number of shares by a
total of 2,450 shares.

The registered share capital of Teleste is thus EUR 6,955,720.80n and the number
of shares is 17,389,302 on 20 November 2006. The nominal value of the share is
EUR 0.40.

The holders of the new shares are entitled to all shareholders' rights from the
registration date, i.e. 20 November 2006. Listing of the new shares will be
applied for on the Helsinki Stock Exchange together with the old shares
beginning 21 November 2006.

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 totaled 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 Helsinki Stock Exchange.
Visit www.teleste.com for more information.

TELESTE CORPORATION

Jukka Rinnevaara
CEO

ADDITIONAL INFORMATION:
CFO Erja Saarikoski tel. +358 2 2605 685 or +358 40 550 9677

DISTRIBUTION:
Helsinki Stock Exchange
Media
www.teleste.com