TELESTE CORPORATION STOCK EXCHANGE RELEASE 4.3.2008 AT 11.00 TELESTE CORPORATION: NOTICE OF ANNUAL GENERAL MEETING OF SHAREHOLDERS The shareholders of Teleste Corporation are hereby invited to the Annual General Meeting of Shareholders to be held on Tuesday, 1 April 2008, at 3 pm., in Finlandia Hall, Mannerheimintie 13 e, 00100 Helsinki. Registration of shareholders who have notified of their attendance will begin at 2 pm. The following matters will be on the agenda of the Annual General Meeting: 1. THE MATTERS TO BE SUBMITTED TO THE ANNUAL GENERAL MEETING PURSUANT TO ARTICLE 10 OF THE COMPANY'S ARTICLES OF ASSOCIATION AND CHAPTER 5, SECTION 3 OF THE FINNISH LIMITED LIABILITIES COMPANIES ACT. 2. PROPOSAL OF THE BOARD OF DIRECTORS TO GRANT SHARE REPURCHASE AUTHORIZATION TO THE BOARD OF DIRECTORS The Board of Directors proposes that the Board of Directors be authorized to decide on repurchasing a maximum of 1.400.000 own shares of the Company. The Company's own shares shall be repurchased otherwise than in proportion to the holdings of the shareholders by using the non-restricted equity through public trading on OMX Nordic Exchange Helsinki at the market price prevailing at the time of acquisition. The shares shall be repurchased for use as consideration in future acquisitions or other arrangements related to the Company's business, as financing for investments or as part of the Company's incentive program or to be held by the Company, to be conveyed by other means or to be cancelled. The repurchase authorization is valid until the Annual General Meeting of Shareholders for year 2009. 3. PROPOSAL OF THE BOARD OF DIRECTORS TO GRANT SHARE ISSUE AUTHORIZATION AND AUTOHORIZATION TO GRANT SPECIAL RIGHTS TO THE BOARD OF DIRECTORS The Board of Directors proposes that the Board of Directors be authorized to decide on issuing new shares and/or conveying the Company's own shares held by the Company and/or granting special rights referred to in Chapter 10, Section 1 of the Finnish Limited Liability Companies Act. New shares may be issued and the Company's own shares held by the Company may be conveyed to the Company's shareholders in proportion to their current shareholdings in the Company or waiving the shareholder's pre-emption right, through a directed share issue if the Company has a weighty financial reason to do so, such as using the shares as consideration in future acquisitions or other arrangements related to the Company's business, as financing for investments or using the shares as part of the Company's incentive program. New shares may be issued and the Company's own shares held by the Company may be conveyed either against payment or for free. A directed share issue may be a free share issue only if there is an especially weighty financial reason both for the Company and with regard to the interests of all shareholders in the Company. The new shares may also be issued in a free share issue to the Company itself. A maximum of 5.000.000 new shares may be issued. A maximum of 1.744.721 of the Company's own shares held by the Company may be conveyed. The number of shares to be issued to the Company itself together with the shares repurchased to the Company on basis of the repurchase authorization shall be at the maximum of 1.400.000 shares. The maximum number of shares that may be subscribed with the special rights granted by the Company is 2.000.000 shares. The authorizations are valid until the Annual General Meeting of Shareholders for year 2009. Composition of the Board of Directors Shareholders representing a holding of more than 20 per cent of all the Company's shares and voting rights, have informed the Company's Board of Directors of their proposal to the Annual General Meeting that the number of members in the Company's Board of Directors is six and that the Chairman of the Board of Directors Tapio Hintikka and the members Tero Laaksonen, Pertti Raatikainen, Timo Toivila and Pekka Vennamo be re-elected as well Kai Telanne be elected as a new member. The above mentioned shareholders have also informed the Company's Board of Directors of their proposal to the Annual General Meeting that the annual remunerations to be paid to the members of the Board of Directors would be increased and thus be the following: EUR 40.000 per year for the Chairman and EUR 25.000 per year for each member. In addition a meeting fee of EUR 250 per meeting is proposed. The annual remuneration is proposed to be paid so that 40 per cent of the annual remuneration will be used for purchasing the Company's shares for the members of the Board of Directors and the rest will be paid in cash. Election of Auditor The General Meeting of Shareholders elects an auditor whose term of office ends at the expiry of the next Annual General Meeting following the election. The Board of Directors has assessed the operation and independence of the current auditor KPMG Oy Ab for the financial year 2007. The Board of Directors recommends the re-election of KPMG Oy Ab for the Company's auditor for the term that ends at the expiry of the next Annual General Meeting following the election. Shareholders representing a holding of more than 20 per cent of all the Company's shares and voting rights have informed the Company's Board of Directors that they are in favour of electing KPMG Oy Ab as the Company's auditor. The Documents Copies of the financial statements and the proposals by the Board of Directors to the General Meeting will be available for the shareholders' inspection as from Tuesday, 25 March 2008 at the Teleste Corporation's Head Office in Seponkatu 1, 20660 Littoinen, Finland. Copies of them will be sent to the shareholders upon request. Right to attend Shareholders who are on Thursday, 20 March 2008 registered in the Company's Shareholders' Register maintained by the Finnish Central Securities Depository Ltd are entitled to attend the Annual General Meeting. Shareholders who hold their shares under the name of a nominee can be temporarily registered in the Company's Shareholders' Register no later than on Thursday, 20 March 2008 to allow attendance at the Annual General Meeting. Registration Shareholders wishing to attend the Annual General Meeting must notify the Company of their attendance no later than on Wednesday, 26 March 2008 by 4 pm. Please register either to: Teleste Corporation, Ms. Tiina Vuorinen, P.O. Box 323, 20101 Turku, Finland, or by telephoning + 358 2 2605 611, or by faxing + 358 2 2605 812, or by emailing at investor.relations@teleste.com. The notice should arrive before the deadline stated above. Possible Powers of Attorney are requested to be submitted when the shareholder in question notifies the Company of his/her intention to attend. Dividend The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.24 per share be paid based on the adopted balance sheet for the fiscal year that ended on 31 December 2007 for shares other than those held by the Company. The dividend will be paid to shareholders who on the record date, Friday, 4 April 2008, are registered in the Company's Shareholders' Register, which is maintained by Finnish Central Securities Depository Ltd. The dividend will be paid on 15 April 2008. Separate invitations shall not be sent to the shareholders. Helsinki, 4th March 2008 Teleste Corporation Board of Directors 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 APPENDICES: PROPOSAL TO GRANT SHARE REPURCHASE AUTHORIZATION TO THE BOARD OF DIRECTORS The Board of Directors of Teleste Corporation proposes to the Annual General Meeting of Shareholders to be held on 1 April 2008 that the Board of Directors be authorized to decide on the repurchase of the Company's own shares (Repurchase Authorization) on the following terms and conditions: 1. Maximum number of shares to be repurchased By virtue of the authorization the Board of Directors is entitled to decide on repurchasing a maximum of 1.400.000 Company's own shares. 2. Directed repurchase and consideration to be paid for shares The Company's own shares shall be repurchased otherwise than in proportion to the holdings of the shareholders by using the non-restricted equity through public trading on OMX Nordic Exchange Helsinki at the market price prevailing at the time of acquisition. The shares shall be repurchased and paid for in accordance with the rules of OMX Nordic Exchange Helsinki and the Finnish Central Securities Depository Ltd. 3. Holding, cancelling and conveying of shares The shares shall be repurchased for use as consideration in future acquisitions or other arrangements related to the Company's business, as financing for investments or as part of the Company's incentive program or to be held by the Company, to be conveyed by other means or to be cancelled. 4. Other terms and validity The Board of Directors shall decide on other terms and conditions related to the repurchase of the Company's own shares. The Repurchase Authorization is valid until the Annual General Meeting of Shareholders for year 2009. PROPOSAL TO GRANT SHARE ISSUE AUTHORIZATION AND AUTHORIZATION TO GRANT SPECIAL RIGHTS ENTITLING TO SHARES TO THE BOARD OF DIRECTORS The Board of Directors of Teleste Corporation proposes to the Annual General Meeting of Shareholders to be held on 1 April 2008 that the Board of Directors be authorized to decide on (i) Issuing new shares and/or (ii) Conveying the Company's own shares held by the Company and/or (iii) Granting special rights entitling to shares pursuant to Chapter 10, Section 1 of the Finnish Limited Liabilities Companies Act on the following terms and conditions: 1. Right to the shares New shares may be issued and the Company's own shares may be conveyed: - to the Company's shareholders in proportion to their current shareholdings in the Company; or - waiving the shareholder's pre-emption right, through a directed share issue if the Company has a weighty financial reason to do so, such as using the shares as consideration in future acquisitions or other arrangements related to the Company's business, as financing for investments or as part of the Company's incentive program. The new shares may also be issued in a free share issue to the Company itself. 2. Share issue against payment and for free New shares may be issued and the Company's own shares held by the Company may be conveyed either against payment (Share Issue Against Payment) or for free (Free Share Issue). A directed share issue may be a Free Share Issue only if there is an especially weighty financial reason both for the Company and with regard to the interests of all shareholders in the Company. 3. Maximum number of shares A maximum of 5.000.000 new shares may be issued. A maximum of 1.744.721 of the Company's own shares held by the Company may be conveyed. The number of shares to be issued to the Company itself together with the shares repurchased by the Company on basis of the Repurchase Authorization shall be at the maximum of 1.400.000 shares. This maximum number of shares shall include the Company's own shares held by the Company itself or its subsidiary as stated in Chapter 15, Section 11, Paragraph 1 of the Finnish Limited Liabilities Companies Act. 4. Granting of special rights The Board of Directors is authorized to grant special rights referred to in Chapter 10, Section 1 of the Finnish Limited Liabilities Companies Act, which carry the right to receive, against payment, new shares of the Company or the Company's own shares held by the Company. The right may also be granted to the Company's creditor in such a manner that the right is granted on a condition that the creditor's receivable is used to set off the subscription price. The maximum number of shares that may be subscribed by virtue of the special rights granted by the Company is 2.000.000 shares. 5. Recording of the subscription price The subscription price of the new shares and the consideration payable for the Company's own shares shall be recorded under the invested non-restricted equity fund. 6. Other terms and validity The Board of Directors shall decide on other terms and conditions related to the authorizations. The authorizations are valid until the Annual General Meeting of Shareholders for year 2009.