Teleste - Company Announcement

TELESTE ESTABLISHES A NEW SHARE-BASED INCENTIVE PROGRAMME

Turku, Finland, 2015-02-05 08:15 CET (GLOBE NEWSWIRE) -- 

TELESTE CORPORATION STOCK EXCHANGE RELEASE  5.2.2015  AT 09:15



TELESTE ESTABLISHES A NEW SHARE-BASED INCENTIVE PROGRAMME

The Board of Directors of Teleste Corporation has approved the establishment of
a new long-term share-based incentive programme to be offered to the key
employees of Teleste (below LTI 2015). 

The objective of LTI 2015 is to align the interests of the key employees with
those of Teleste's shareholders by creating a long-term equity interest for the
key employees and, thus, to increase the company value in the long term as well
as to drive performance culture, to retain key employees and to offer the key
employees with competitive compensation for excellent performance in the
company. 

LTI 2015 consists of three annually commencing plans with three main elements:
an investment in Teleste shares as a precondition for the key employee's
participation in LTI 2015, a matching share plan with a three-year vesting
period based on the above investment and a performance matching plan with a
three-year performance period. The commencement of the subsequent new plans
after 2015 and their eligible participants will be subject to a separate
approval of Teleste's Board of Directors. 

The share investment and the matching share plan

The matching share plan comprises the individual key employee's investment in
Teleste's shares and the delivery of matching shares as a long-term incentive
reward against the invested shares. After the three-year vesting period the key
employee receives one matching share for each invested share free of charge. If
all the eligible key employees participate in the matching plan by fulfilling
the investment precondition, the maximum aggregate amount of matching shares
that may be delivered based on the first three-year matching share plan
commencing in 2015 is approximately 65,000 shares (gross before the deduction
of the applicable taxes and the remaining net amount is delivered to the
participants as Teleste's shares). 

The performance matching plan

The performance matching plan comprises a three-year performance period. The
potential share rewards will be delivered if the performance targets set by the
Board of Directors are attained. The performance measure applied in the first
three-year plan is the total shareholder return (TSR) of Teleste's share in the
three-year performance period. A precondition for an individual key employee's
participation in the performance matching plan is the above mentioned
investment in Teleste's shares. 

If all the eligible key employees participate in the performance matching plan
by fulfilling the investment precondition and if the performance targets set
for the first performance matching plan commencing in 2015 are attained in
full, the maximum number of shares that may be delivered based on the first
three-year performance matching plan is approximately 260,000 shares (gross
before the deduction of the applicable taxes). 

Other information

 The Board of Directors has approved 37 key employees as eligible for
participating in the first three-year plan of LTI 2015. 

The Board of Directors anticipates that no new shares will be issued in
connection with the new share-based incentive plan and, therefore, the plan
will have no dilutive effect on the number of the company's registered shares. 



Teleste is an international technology company that develops and offers video
and broadband technologies and related services. Our supply of technology
contributes to the convenience and safety of daily living. Our core business is
video - image and data processing, transfer and management. Our customer base
consists of cable and telecom operators, as well as public sector
organizations. Our business is divided into two divisions, which are Video and
Broadband Solutions and Network Services. In both areas, we rank among the
world's leading companies and technological forerunners. Video and Broadband
Solutions focuses on access networks and product solutions in video
surveillance applications. Network Services offers comprehensive services for
network design, construction and maintenance. In 2013, Teleste's net sales
totaled EUR 193 million, and the company employed more than 1,300 people.
Teleste runs a worldwide network of offices and more than 90% of its sales are
generated outside Finland. The company is listed on the Nasdaq Helsinki. For
more information see www.teleste.com 





TELESTE CORPORATION



Marjo Miettinen
Chairman of the Board of Directors

Jukka Rinnevaara
President and CEO





ADDITIONAL INFORMATION:
Marjo Miettinen, phone +358 400 512771
Jukka Rinnevaara, phone +358 2 2605 866 or +358 400 747 488

DISTRIBUTION:
Nasdaq Helsinki
Main Media
www.teleste.com