TELESTE ENTERS SWISS SERVICES MARKET THROUGH ACQUISITION
TELESTE CORPORATION INVESTOR NEWS 15.4.2010 AT 10:00 TELESTE ENTERS SWISS SERVICES MARKET THROUGH ACQUISITION Teleste Corporation has entered the Swiss services market by acquiring a local services company specialising in network maintenance and upgrades. The company in question is Freycom S.A. with its business area in upgrades and maintenance of cable and house networks. The company operates in the French-speaking part of Switzerland with its principal location in the town of Yverdon. The former owner Didier Frey will continue as the managing director for the company. For Teleste, the acquisition marks an entry into services business in a market where we have long been an established and significant supplier of products. Our primary clientele consists of growth-seeking cable and FTTH operators. In Switzerland, penetration of cable networks is one of the highest in Europe with about 250 local operators in the business. Consolidation of the cable networks is likely to continue. Currently, there is one cable operator with a nation-wide scope. In 2009, the net sales of the acquired company stood at approximately EUR 2.7 million. The impact of this acquisition to Teleste's net sales for 2010 is estimated to be approximately EUR two million. The deal will have no significant effect on Teleste's equity ratio. The acquisition increases the number of Teleste personnel by approximately 20. The deal entered into effect on 14 April 2010. The parties have agreed not to disclose the contract price. The objective is to provide local network services for operators through Freycom as part of Teleste's overall service business strategy. The core expertise and local nature of the company creates favourable conditions for this objective. Teleste is an international technology group founded in 1954, which is specialised in broadband video and data communication systems and services. The group is active in two business segments, Video and Broadband Solutions and Network Services; in both fields, we are among the global leaders. Video is at the core of our business activities, with a focus on the processing, transmission and management of video and data for operators and public authorities who provide multiple video-related information, entertainment and security services to end-users. Video and Broadband Solutions business segment has the emphasis on product solutions for broadband access networks, video service platforms and video surveillance applications. Network Services segment deliver comprehensive network service solutions including new construction, rebuilding, upgrading, planning and maintenance services of cable networks. In 2009 the group's net sales totalled EUR 142 million and the group employed 1260 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 NASDAQ OMX Helsinki Ltd. www.teleste.com for more information. TELESTE CORPORATION Jukka Rinnevaara President and CEO FOR MORE INFORMATION: CEO Jukka Rinnevaara, phone +358 2 2605 866 or +358 400 747 488 DISTRIBUTION: NASDAQ OMX Helsinki Relevant media www.teleste.com