TELESTE BECOMES NUMBER ONE SERVICES PLAYER IN GERMAN CABLE NETWORK MARKET

TELESTE CORPORATION STOCK EXCHANGE RELEASE 1.7.2009 AT 08:00

TELESTE BECOMES NUMBER ONE SERVICES PLAYER IN GERMAN CABLE NETWORK MARKET

Teleste Corporation has taken yet another step in its development of services
business by acquiring a fourth services company in Germany, AVC Systemhaus GmbH,
mainly specialising in upgrading and maintenance of cable and house networks.
The company is primarily operational in the Berlin area and the Eastern part of
Germany with its headquarters in the city of Cottbus. Former owners Hans-Joachim
Dosdall, Michael Schumann and Steffen Kiessling continue in the company
management.

With this acquisition Teleste becomes the most significant technical service
company in the German cable networks business. Its main clientele consists of
German cable operators supplying cable network access to approximately 20
million end-customers. The acquired company provides services for the operators
both directly and through the previously established affiliate company Cableway.
With the acquisition Teleste Corporation's holding of Cableway will increase up
to 62.5%. In the same connection Teleste made an agreement with the other owner
of the company for purchasing its 12.5% share bringing Teleste's holding in
Cableway up to 75%. Cableway provides comprehensive services for major German
cable 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 AVC Systemhaus GmbH stands at approximately EUR 10 million
with its business profitability on a sound level. The impact of this acquisition
to Teleste's net sales for 2009 is estimated to be approximately EUR five
million. Moreover, with Teleste becoming the majority shareholder in Cableway
the company will be consolidated into Teleste Corporation in its entirety. The
additional impact of Cableway to Teleste's net sales in 2009 is estimated to
approximately EUR four million. The acquisition of AVC is expected to improve
Teleste's profitability for 2009, although it will have no significant impact on
Teleste's equity ratio. Gearing will increase to some degree. Cableway will not
have a significant impact on Teleste's result. Acquisition of AVC and the
majority holding in Cableway will increase the number of Teleste personnel by
250. The contract price will not be disclosed by the parties. The transaction
becomes effective on 1 July 2009.

Side by side with its strong emphasis on product offering Teleste develops its
technical network services provided for the operators. Teleste's strategy is to
become the leading comprehensive technology and services partner to the cable
operators.

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
2008 the Group's net sales totalled EUR 109 million. At the year-end the Group
employed on average 677 persons. The company runs about 30 offices worldwide and
more than 90 % of Teleste's net sales are generated outside Finland. Teleste
shares are listed on the NASDAQ OMX Helsinki Oy.
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
Primary media
www.teleste.com