NEW YORK, Oct. 25, 2004 (PRIMEZONE) -- Telestone Technologies Corporation (OTCBB:TESN), through its subsidiaries, is pleased to announce that it has been awarded a significant Personal Handyphone System (PHS) Expansion Project by some of China's leading telecommunication companies: Shanghai Telecom (The largest fixed line operator in Shanghai and also a subsidiary of China Telecom), Yunan Telecom, and Gansu Telecom. In addition to winning the PHS Systems expansion projects, Telestone will also organize the trail usage of its products and systems in the PHS network with Chongqing Telecom, Shanxi Unicom, Hunan Telecom, Guizhou Telecom and Guangdong Telecom.
Personal Handyphone System, most commonly known as PHS, is a microcellular technology that allows for limited mobility wireless local loop services. As opposed to macro cellular networks such as GSM and CDMA, which use large high-powered base stations to cover wide areas, microcellular networks deploy small base stations in large quantities throughout densely populated areas of cities (on telephone poles, buildings, and road signs, etc.). The operative analogy for a PHS phone is a cordless phone with the ability to roam throughout an entire city, but not outside the city limits if PHS base stations are not present.
China is potentially a very significant market for PHS technology, and as PHS equipment vendors have learned over the past year, the market for PHS in China is growing quite rapidly. By the end of 2003, the number of PHS subscribers in China had reached 35.5 million, among which 23.5 million were newly subscribed in 2003. In terms of financial growth, the size of PHS handset market has had rapid growth from 2001 to 2003. In 2003, the size of PHS handset market had reached 14 billion RMB or 1.75 billion USD. It is also expected that the number of China's PHS users will continue to experience considerable growth in 2004, with over 20 million new consumers and the total number of China's PHS users reaching approximately 75 million by the end of 2007.
Han Daqing, Chairman, CEO & President of Telestone, noted that, "Telestone has finished its technical preparation for the PHS system expansion and coverage projects and has focused on project development in 2004 & 2005," he also added, "Telestone was one of the few companies that was able to provide a whole range of products and total solutions for the PHS market. The Telestone PHS system equipment solution considers the compatibility and smooth transition between Telestone products and the intending 3G devices for the future."
About Telestone Technologies Corporation
The Company through its subsidiaries is a provider of high-tech, wireless communications coverage solutions in the People's Republic of China. The Company principally provides integrated wireless coverage solutions through their national sales and services network to customers in the PRC. The Company's wireless coverage solutions business is comprised of research, development and application of wireless communications technology used in a variety of indoor and outdoor environments such as hotels, residential estates, office buildings, airports, exhibition centers, underground stations, highways and tunnels. The Company currently has approximately 290 employees.
The Company has relocated its executive offices to those of its Beijing operations at Floor 6, Saiou Plaza, No. 5 Haiyang Road, Fengtai Technology Park, Beijing China 100070 and its telephone number is 86-10-83670505. The company website is www.telestonetech.com.
For additional information please contact: Todd Heinzl, Telestone Technologies Corporation, Corporate Communications, 275 Madison Avenue, 6th Floor, New York, NY 10016 Tel: (212) 880-3794 Fax: (212) 880 4241 or emailing investors@telestonetech.com.
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