TELESTE MOVES AHEAD BY ACQUISITIONS IN GERMAN NETWORK SERVICES MARKET

TELESTE CORPORATION STOCK EXCHANGE RELEASE 31.12.2008 AT 12:00

TELESTE MOVES AHEAD BY ACQUISITIONS IN GERMAN NETWORK SERVICES MARKET

Teleste Corporation proceeds with development of its services business by
acquiring three German cable network services companies. The companies
concerned, specialising in upgrading and maintenance of cable and house
networks, are MKS companies, Young-Net GmbH and Antel GmbH. The core regions of
MKS and Young-Net include North Rhine-Westphalia, Lower Saxony and
Rhineland-Palatinate in the Western and Central Germany, whereas Antel operates
in the Southern region of Bavaria. The former principal owners - Volker Meyer at
MKS, Tobias Jung at Young-Net and Josef Würtz at Antel - will continue in their
current managerial positions.

With these acquisitions Teleste will become one of the key service providers in
cable networks business in Germany. Its main clientele consists of key German
cable operators supplying cable network access to approximately 20 million
end-customers. The acquired companies provide services for the operators both
directly and through the previously established affiliate company Cableway.
After these acquisitions Teleste's holding of Cableway will rise up to 50%.
Cooperation with Cableway enables making available a comprehensive range of
services required by the major operators. As the single biggest cable network
country in Europe Germany constitutes strategically one of Teleste's most
important market areas.

In 2008, net sales of the acquired services companies stand at approximately EUR
30 million with their business profitability on a sound level. The impact of
this purchase to Teleste's net sales for 2009 is estimated to be more than EUR
30 million. The transaction is expected to improve Teleste's profitability for
2009 with no essential effect on Teleste's equity ratio; on the other hand,
gearing ratio will increase to some degree. The acquisitions increase the number
of Teleste personnel by 315. The consolidated equity of the acquired companies
at the time of the deal equals about EUR 3.5 million with the balance sheet
total amounting to approximately EUR 13.5 million. The initial purchase price of
the companies share capital stands at EUR 8.7 million. This price may increase
depending on the development of the net profit of the acquired companies in the
next two years. The initial purchase price will be paid in cash with any
potential additional price partly in Teleste shares. The transaction becomes
effective on 1 January 2009.

The objective is to develop network services provided for the operators locally
through the acquired companies by incorporating them in Teleste's overall
service business strategy. For this the core expertise and local nature of these
companies create favourable conditions. Moreover, the companies concerned are
internal customers for Teleste's cable network equipment providing at the same
time distribution channels into German cable operator market. Teleste's
objective is to create a comprehensive product range in support of its service
offering.

Founded in 1954 Teleste is an international technology group specialising in
broadband data communication systems and solutions. The Group is divided into
the following strategic Business Units: Customers of Broadband Cable Networks
include cable operators and majority of the business is carried out through
direct customer contacts. Video Networks supplies solutions involving optical
signal transmission and video network management software solutions for video
surveillance. Major part of its business is conducted through system
integrators. Both Units are ranked among the leading providers in their
respective market areas and are recognised globally for their know-how and
ability to present technically cutting edge solutions on a continual basis. In
2007 the Group's net sales totalled EUR 125.1 million. At the year-end the Group
employed on average 672 persons. The company runs about 30 offices worldwide and
more than 91% of Teleste's net sales are generated outside Finland. The company
is listed on the OMX Nordic Exchange in Helsinki.
For additional information access www.teleste.com

TELESTE CORPORATION

Jukka Rinnevaara
CEO

FOR MORE INFORMATION:
CEO Jukka Rinnevaara, tel +358 2 2605 866 or +358 400 747 488

DISTRIBUTION:
NASDAQ OMX Helsinki
Key media
www.teleste.com