TELESTE CORPORATION STOCK EXCHANGE RELEASE 31.1.2008 AT 15:15 TELESTE SIGNS SIGNIFICANT FRAME AGREEMENT WITH GERMAN CABLEWAY AG Teleste has been chosen for the primary equipment supplier for Cableway AG, one of the main cable network turnkey service companies in Germany. In 2008-2011 the agreement will bring Teleste sales of minimum EUR 15 million. The end customers involve leading German cable operators. Upgrade programs on the German cable networks will continue changing the focus from coaxial access network upgrades towards optical segmentation of the networks and towards building and house network upgrades. In the next few years the house networks will be widely upgraded in order to meet the demands by modern interactive services provided by the cable operators in the country. The house network upgrades are provided as turnkey services in which the service companies install, maintain and deliver the products and solutions to cable operators. The signed agreement is a significant one heralding a new mode of co-operation in the rapidly growing house network markets in Germany. The major part of the deliveries include different AC and CXE amplifier solutions and products by DINH Telecom, a company acquired by Teleste last spring. The deliveries will start in the second quarter of 2008. Cableway AG is one of the main cable network turnkey service companies formed by seven local cable network service providers in Germany. Their reliable service is carried out by approximately 1200 cable network specialists. 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 2007 the group's net sales totalled EUR 125.1 million and the group employed 672 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 Helsinki. Visit www.teleste.com for more information. TELESTE CORPORATION Jukka Rinnevaara CEO ADDITIONAL INFORMATION: Mr Jukka Rinnevaara President and CEO, tel +358 2 2605 866 or +358 400 747 488 DISTRIBUTION: OMX Nordic Exchange Helsinki Media www.teleste.com