SHARES SUBSCRIBED WITH TELESTE 2002B STOCK OPTIONS IN TELESTE CORPORATION

TELESTE CORPORATION STOCK EXCHANGE ANNOUNCEMENT 24.7.2006 AT 10.00

SHARES SUBSCRIBED WITH TELESTE 2002B STOCK OPTIONS IN TELESTE
CORPORATION

29,000 shares in Teleste Corporation have been subscribed for with
the Teleste 2002B stock options after the increase in the share
capital registered on 10 May 2006. In accordance with the Terms
and Conditions, the share subscription price with the Teleste
2002B stock options is EUR 2.29.

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

These shares, 29,000 in total, have been entered into the Trade
Register on 24 July 2006. As a result of the share subscriptions,
the share capital of Teleste was increased by a total of 29,000
shares, i.e. by EUR 11,600.00.

The registered share capital of Teleste is thus EUR 6,953,100.80,
i.e. 17,382,752 shares on 24 July 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. 24 July 2006. Listing of
the new shares will be applied for on the Helsinki Exchanges
together with the old shares beginning 25 July 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 main list of Helsinki Exchanges.
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 Exchanges
Media
www.teleste.com