TELESTE CORPORATION STOCK EXCHANGE ANNOUNCEMENT 21.3.2007 AT 11:00 SHARES SUBSCRIBED WITH STOCK OPTIONS 2002A AND 2002B IN TELESTE CORPORATION A total of 7,307 shares in Teleste Corporation have been subscribed for with the stock options 2002A and a total of 15,055 shares with the stock options 2002B after the share capital increase registered on 6 February 2007. In accordance with the Terms and Conditions, the share subscription price with the stock options 2002A is EUR 6.95/share and with the stock options 2002B EUR 2.29/share. The share subscription period with the stock options 2002A commenced in February 2005 and with the stock options 2002B commenced in February 2006. The stock option program was approved by the Annual General Meeting on 8 April 2002. These shares, 22,362 in total, have been entered into the Trade Register on 21 March 2007. As a result of the share subscriptions, the share capital of Teleste was increased by a total of EUR 8,944.80 and the number of shares by a total of 22,362 new shares. The registered share capital of Teleste is thus EUR 6,966,932.80 and the number of shares is 17,417,332 on 21 March 2007. The nominal value of the share is EUR 0.40. The holders of the new shares are entitled to all shareholder rights from the registration date, i.e. 21 March 2007. Listing of the new shares will be applied for on the Helsinki Stock Exchange together with the old shares beginning 22 March 2007. 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 2006 the group's net sales totalled EUR 101.8 million and the group employed 621 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 Helsinki Stock Exchange. Visit www.teleste.com for more information. TELESTE CORPORATION Jukka Rinnevaara CEO ADDITIONAL INFORMATION: CFO Erja Saarikoski tel. +358 40 550 9677 DISTRIBUTION: Helsinki Stock Exchange Media www.teleste.com