TELESTE CONTINUES TO UPGRADE THE GERMAN CABLE NETWORKS

TELESTE CORPORATION STOCK EXCHANGE RELEASE 12.01.2007 AT 09.30

TELESTE CONTINUES TO UPGRADE THE GERMAN CABLE NETWORKS

Teleste has received an order from Kabel Deutschland AG (KDG) worth over five
million euros. The order involves Teleste’s BK Optiflex product family that is
used in KDG’s upgrade project for bi-directionality and capacity upgrades.

The deliveries will take place during 2007. All target cities that have been
allocated to Teleste have not been identified.

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