TELESTE CORPORATION STOCK EXCHANGE RELEASE 17.7.2007 AT 16:30 TELESTE SIGNS FRAME CONTRACT FOR FRENCH MARKET Teleste has signed a frame contract with a major telecom operator for the joint supply of video surveillance systems and network solutions for the French market. In this co-operation, Teleste is responsible for the supply of video surveillance systems and the telecom operator of network solutions. The contract is for an initial period of two years and the parties expect its value to exceed two million euros. The importance of security and video surveillance has received much attention in France lately and it is expected that investments into video surveillance will increase in the near future especially in city centres. This co-operation gives Teleste a very good position to penetrate this growing market. Teleste, an international technology group founded in 1954, is specialized in broadband data communication systems and solutions. The group is divided into two strategic business areas: 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 areas 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 OMX Nordic Exchange. Visit www.teleste.com for more information. TELESTE CORPORATION Jukka Rinnevaara CEO ADDITIONAL INFORMATION: CEO Jukka Rinnevaara, tel +358 2 2605 866 or +358 400 747 488 DISTRIBUTION: OMX Nordic Exchange Helsinki Oy Media www.teleste.com