TELESTE ACQUIRES KNOWLEDGE BASE INTO FTTH SOLUTIONS

TELESTE CORPORATION RELEASE 19.6.2006 AT 10.15

TELESTE ACQUIRES KNOWLEDGE BASE INTO FTTH SOLUTIONS

Teleste Corporation has acquired the stock capital of Swedish
Promacom AB. Promacom is a Systems Integrator with 15 year track
record in the delivery of data communications solutions to mostly
Service Providers and City Carriers. The company turnover last year
was approximately 2 million euros and it employs five persons.

The typical Promacom deliveries include both the higher network
level switching solutions as well as the necessary home gateway
terminals. Via the acquisition Teleste gains access to both a new
customer segment and a group of new technology partners. Teleste's
goal is to achieve a leading position in the Nordic countries in
the FttH technology segment. Financial details were not disclosed.

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

DISTRIBUTION:
Helsinki Exchanges
Media
www.teleste.com