Teleste - Decisions of general meeting

DECISIONS OF THE ANNUAL GENERAL MEETING OF TELESTE

TELESTE CORPORATION    STOCK EXCHANGE RELEASE   3.4.2007               


DECISIONS OF THE ANNUAL GENERAL MEETING OF TELESTE                              

The Annual General Meeting of Teleste Corporation held on April 3, 2007 resolved
to distribute a dividend of EUR 0.20 per share for 2006 for shares other than   
those held by the Company in accordance with the proposal of the Board of       
Directors. The record date for the dividend is April 10, 2007 and the dividend  
will be paid as of April 17, 2007. The Annual General Meeting approved the      
accounts and the Board of Directors and the CEO were discharged from liability  
for the financial period.                                                       

The Annual General Meeting decided that the Board of Directors shall consist of 
five members. Mr. Tapio Hintikka was re-elected as the Chairman of the Board of 
Directors and Mr. Tero Laaksonen, Mr. Pertti Raatikainen, Mr. Timo Toivila and  
Mr. Pekka Vennamo were re-elected as members of the Board of Directors.         

The Annual General Meeting decided that the remuneration to be paid to the      
Chairman of the Board of Directors is EUR 36.000 per year and the remuneration  
to be paid for each member of the Board of Directors EUR 20.000. In addition a  
meeting fee of EUR 250 per meeting will be paid to each member of the Board of  
Directors. The remuneration will be paid so that 40 per cent of the remuneration
will be used for purchasing Teleste shares for the members of the Board of      
Directors and the rest will be paid in cash.                                    

KPMG Oy Ab was elected as the auditor of Teleste Corporation.                   

PROPOSAL OF THE BOARD OF DIRECTORS FOR PARTIAL AMENDMENT OF THE ARTICLES OF     
ASSOCIATION                                                                     

The Annual General Meeting approved the Board of Directors' proposal on amending
the current Articles of Association. The main content of the amendments is the  
following:                                                                      

1. Article 2 concerning the Company's field of operations shall be specified to 
the effect that it better corresponds to the Company's current operations which 
include production and selling of electronics and telecommunication industry    
products, services and solutions as well as thereto related service,            
maintenance, training, designing, integration and installation activities and   
consultation. In addition, a provision according to which the Company may carry 
out its operations also through subsidiaries and associated companies, shall be 
added to the Article.                                                           

2. Article 3 concerning the minimum and maximum share capital and the nominal   
value of the share shall be deleted.                                            

3. Article 4 concerning the book-entry system shall be amended so that all other
provisions except for the reference that the Company's shares belong to the     
book-entry system shall be deleted.                                             

4. Article 7 shall be amended so that instead of using the right to sign the    
company name the term ‘right to represent the company' adopted under the new    
Companies Act shall be used. In addition, some wording specifications shall be  
made to the Article.                                                            

5. Article 11, Paragraph 2, point 1 shall be amended so that at the Annual      
General Meeting of Shareholders the financial statements, which include         
consolidated financial statements, and the report of the Board of Directors     
shall be presented and points 3 and 4 so that at the Annual General Meeting of  
Shareholders the adoption of the financial statements and consolidated financial
statements and the use of profit shown in the balance sheet shall be resolved   
on.                                                                             

6. Due to the deletion of Article 3, the numbering of the Articles of           
Association shall be amended.                                                   

7. As a result of the change in the numbering of the Articles of Association,   
the reference to Article 10 included in the provision concerning the redemption 
obligation (new Article 11) shall be amended to refer to Article 9.             

PROPOSAL OF THE BOARD OF DIRECTORS TO GRANT SHARE REPURCHASE AUTHORIZATION TO   
THE BOARD OF DIRECTORS                                                          

The Annual General Meeting approved the Board of Directors' proposal on         
authorizing the Board of Directors to decide on the repurchase of a maximum of  
1,290,000 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 the Helsinki Stock Exchange at the market price prevailing at 
the time of acquisition.                                                        

The shares shall be acquired 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 2008.                                                     

PROPOSAL OF THE BOARD OF DIRECTORS TO GRANT AN AUTHORIZATION TO THE BOARD OF    
DIRECTORS TO ISSUE SHARES, TO CONVEY OWN SHARES AND TO GRANT SPECIAL RIGHTS     
ENTITLING TO SHARES                                                             

The Annual General Meeting approved the Board of Directors' proposal on         
authorizing the Board of Directors 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 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.                                    

The new shares may also be issued in a free share issue to the Company itself.  

A maximum of 4.500.000 new shares may be issued. A maximum of 1.730.000 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     
1.290.000 shares.                                                               

The maximum number of shares that may be subscribed with the special rights     
granted by the Company is 1.730.000 shares.                                     

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.                                                                           


The authorizations are valid until the Annual General Meeting of Shareholders   
for year 2008.                                                                  

PROPOSAL OF THE BOARD OF DIRECTORS ON AMENDING THE TERMS AND CONDITIONS OF THE  
STOCK OPTION PLANS FOR YEARS 2002 AND 2004                                      

The Annual General Meeting approved the Board of Directors' proposal on amending
the terms and condition of the stock option plans for years 2002 and 2004. The  
references to the nominal value of the shares were decided to be deleted from   
the terms and conditions of the stock option plans and it was decided that the  
subscription price of the shares will be recorded under the invested            
non-restricted equity fund. Consequently, the provision on the maximum increase 
in share capital was decided to be deleted from the terms and conditions. In    
addition, a provision according to which the subscription price must always be  
at least EUR 0.40 was decided to be added to the terms and conditions of the    
stock option plans.                                                             

PROPOSAL OF THE BOARD OF DIRECTORS CONCERNING THE ISSUE OF STOCK OPTIONS        

The Annual General Meeting decided to approve the Board of Directors' proposal  
on issuing stock options to the key personnel of the Teleste Group. The Company 
has a weighty financial reason for the issue of stock options, since the stock  
options are intended to form part of the incentive and commitment program for   
the key personnel. The purpose of the stock options is to encourage the key     
personnel to work on a long-term basis to increase shareholder value. The       
purpose of the stock options is also to commit the key personnel to the Company.

The maximum total number of stock options issued will be 840,000. The           
stock options entitle their owners to subscribe for a maximum total of          
840,000 shares in the Company.                                                  

The share subscription price will be based on the prevailing market             
price of the Teleste Corporation share on the Helsinki Stock Exchange in April  
2007, April 2008 and April 2009, a ten (10) per cent premium added to each.     

The share subscription period for stock options 2007A will be 1 April           
2010-30 April 2012, for stock options 2007B, 1 April 2011-30 April 2013 and for 
stock options 2007C, 1 April 2012-30 April 2014.                                

A share ownership plan, in which the Group's key personnel is obliged to acquire
the Company's shares with a proportion of the income gained from the stock      
options, will be incorporated to the stock options 2007. The manner, in which   
the share ownership plan will be executed, will be decided by the Board of      
Directors in connection with the decision to distribute stock options.          


Teleste Corporation                                                             


Jukka Rinnevaara                                                                
CEO                                                                             


ADDITIONAL INFORMATION:                                                         
CEO Jukka Rinnevaara, tel +358 2 2605 866 or +358 400 747 488                   

DISTRIBUTION:                                                                   
Helsinki Exchanges                                                              
Media                                                                           
www.teleste.com                                                                 


APPEDIX	Teleste Corporation Stock options 2007

Attachments:

teleste stock options 2007.pdf