TELESTE SIGNS A SIGNIFICANT FRAME AGREEMENT WITH TELENET FOR THE DELIVERY OF OPTICAL TRANSMISSION EQUIPMENT

TELESTE CORPORATION STOCK EXCHANGE RELEASE 28.8.2008 AT 10:30

TELESTE SIGNS A SIGNIFICANT FRAME AGREEMENT WITH TELENET FOR THE DELIVERY OF
OPTICAL TRANSMISSION EQUIPMENT

Teleste has signed a frame agreement with Telenet, the major cable operator in
Belgium having 2.4 subscribers online. The value of the frame agreement is
estimated to be several million euros. Under this agreement Teleste delivers
equipment that will bring the fiber deeper into the network with the intention
to increase both the upstream and the downstream capacity. The need for
additional capacity is driven by the success of Telenet's Broadband Internet,
digital-TV and video on demand services. The deliveries consist of a range of
HDO modules and AC nodes.

With this agreement Teleste continues its role as one of the Telenet's key
suppliers. The total project duration is 4-5 years and the first delivery is
scheduled for the 3rd quarter of 2008.

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 91% 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