TELESTE SIGNS SIGNIFICANT FRAME AGREEMENT WITH GERMAN CABLEWAY AG

TELESTE CORPORATION STOCK EXCHANGE RELEASE 31.1.2008 AT 15:15

TELESTE SIGNS SIGNIFICANT FRAME AGREEMENT WITH GERMAN CABLEWAY AG

Teleste has been chosen for the primary equipment supplier for Cableway AG, one
of the main cable network turnkey service companies in Germany. In 2008-2011 the
agreement will bring Teleste sales of minimum EUR 15 million. The end customers
involve leading German cable operators.

Upgrade programs on the German cable networks will continue changing the focus
from coaxial access network upgrades towards optical segmentation of the
networks and towards building and house network upgrades. In the next few years
the house networks will be widely upgraded in order to meet the demands by
modern interactive services provided by the cable operators in the country. The
house network upgrades are provided as turnkey services in which the service
companies install, maintain and deliver the products and solutions to cable
operators. The signed agreement is a significant one heralding a new mode of
co-operation in the rapidly growing house network markets in Germany.

The major part of the deliveries include different AC and CXE amplifier
solutions and products by DINH Telecom, a company acquired by Teleste last
spring. The deliveries will start in the second quarter of 2008.

Cableway AG is one of the main cable network turnkey service companies formed by
seven local cable network service providers in Germany. Their reliable service
is carried out by approximately 1200 cable network specialists.

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 2007 the group's net sales totalled EUR 125.1 million and the
group employed 672 persons at the year-end. The company has approximately 30
offices world-wide and over 90% of Teleste's net sales are generated outside
Finland. The company is listed on the OMX Nordic Exchange Helsinki.
Visit www.teleste.com for more information.

TELESTE CORPORATION

Jukka Rinnevaara
CEO

ADDITIONAL INFORMATION:
Mr Jukka Rinnevaara President and CEO, tel +358 2 2605 866 or +358 400 747 488

DISTRIBUTION:
OMX Nordic Exchange Helsinki
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www.teleste.com