TELESTE CORPORATION STOCK EXCHANGE ANNOUNCEMENT 21.6.2007 SHARES SUBSCRIBED WITH STOCK OPTIONS 2002A AND 2002B IN TELESTE CORPORATION A total of 17,464 shares in Teleste Corporation have been subscribed for with the stock options 2002A and a total of 27,440 shares have been subscribed for with stock options 2002B after the increase of shares registered on 7 May 2007. In accordance with the Terms and Conditions, the share subscription price with the stock options 2002A is EUR 6.75/share and with 2002B stock options EUR 2.09/share. The share subscription period with the stock options 2002A commenced in February 2005 and with the stock options 2002B in February 2006. The stock option program was approved by the Annual General Meeting on 8 April 2002. These shares, 45,086 in total, have been entered into the Trade Register on 21 June 2007. As a result of the share subscriptions, the number of shares was increased by a total of 45,086 new shares. The share subscription price will be recorded under the invested non-restricted equity fund. After the increase of 45,086 shares registered on 21 June 2007, the number of Teleste shares is 17,464,268. The shares have no nominal value. The holders of the new shares are entitled to all shareholder rights from the registration date, i.e. 21 June 2007. Listing of the new shares will be applied for on the Helsinki Stock Exchange together with the old shares beginning 25 June 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 2 2605 685 or +358 40 550 9677 DISTRIBUTION: Helsinki Stock Exchange Media www.teleste.com