BEIJING, April 28 /PRNewswire-Asia/ -- Telestone Technologies Corporation ("Telestone" or the "Company") (Nasdaq: TSTC), a leading developer and provider of wireless communication local access network solutions based in China, today announced that it engaged Deloitte Touche Tohmatsu CPA Ltd., Beijing Branch ("Deloitte Touche") to act as consultant to the Company for purposes of the Company's compliance with the financial reporting and control requirements of the Sarbanes-Oxley Act Section 404 ("SOX 404").
As part of compliance with SOX 404, Telestone will report on the adequacy of its disclosure control and internal control over financial reporting after documenting and evaluating its procedures. Telestone's SOX 404 compliance program will also address how management's decision making is linked to financial reporting risks.
"Review of our disclosure control and internal control over financial reporting procedures will be useful for our ongoing efforts aimed at ensuring efficient operations," stated Chairman Daqing Han. "It will contribute to the Company's long-term management especially in the period of high-speed development."
Telestone expects to meet the requirements of the Sarbanes-Oxley Act before December 31, 2010.
About Telestone Technologies Corporation
Telestone is a leading innovator in local access network technologies and solutions. Telestone is a global company with 30 sales offices throughout China and a network of international branch offices and sales agents. For more than 10 years, Telestone has been installing radio-frequency based 1G and 2G systems throughout China for China's leading telecommunications companies. After intensive research on the demands of carriers in the 3G age, Telestone developed proprietary third generation technology, Wireless Fiber-Optics Distribution System (WFDS(TM)) technology, which provides a scalable, multi-access local access network solution for China's three cellular protocols. Telestone offers services that include project design, project manufacturing, installation, maintenance and after-sales support. Telestone Technologies has approximately 1,200 employees.
Telestone's customer list includes the "Big Three" carriers in China; China Mobile, China Unicom and China Telecom. They rely on companies like Telestone to wire and enable the "last mile" of 2G and 3G telecommunications services for commercial, residential, municipal and educational buildings and complexes in China. As of December 31, 2009, sales to China Mobile accounted for 45.4% of revenues, China Unicom 45.5%, and China Telecom 7.4% of revenues. Telestone is awarded installation contracts obtained from the "Big Three" based on the network design solutions submitted for a particular site. Based on the design of the network, Telestone then manufactures or procures cellular transmission hardware and utilizes local installers to install a site with a RFPA/ 2G network, 2G and 3G network, a 3G upgrade or a WFDS(TM) system.
Safe Harbor Statement
This release contains certain "forward-looking statements" relating to the business of Telestone Technologies Corporation and its subsidiary companies. Forward looking statements can be identified by the use of forward-looking terminology such as "believes, expects" or similar expressions. Such forward looking statements involve known and unknown risks and uncertainties, including all business uncertainties relating to product development, marketing, concentration in a single customer, raw material costs, market acceptance, future capital requirements, competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the Securities and Exchange Commission. Telestone Technologies is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.
For further information, contact:
Company:
Dan Feng, Assistant Secretary of the Board
Tel: +86-10-8367-0088 x1232
Email: fengdan@telestone.com
Investor Relations:
John Mattio
HC International Inc.
Tel: +1-203-616-5144
Email: john.mattio@hcinternational.net
