omniture

Telestone Technologies Corporation Ltd. Enters into Agreement to Acquire Shandong Guolian Communication Technology Co., Ltd.

BEIJING, July 9 /Xinhua-PRNewswire-FirstCall/ -- Telestone Technologies Corporation Ltd. ("Telestone") (Nasdaq: TSTC), a leading developer and provider of wireless communication coverage solutions based in the People's Republic of China, today announced that, through its variable interest entity, Beijing Telestone Wireless Telecommunication Company Ltd., the Company has entered into a Stock Transfer Agreement to acquire 100 percent of the equity in Shandong Guolian Communication Technology Co. Ltd. ("Guolian").

According to the agreement, on the closing date, Guolian will receive 800,000 shares of restricted common stock of Telestone and $500,000 in cash. One year following the agreement, Guolian is also eligible to receive an additional 100,000 shares of restricted common stock in Telestone subject to it meeting certain performance thresholds.

Guolian is a leading provider of wireless coverage integration services for carriers in Shandong Province, China. Guolian has strong ties with various wireless communications operators in Shandong Province and maintains a leading market share amongst wireless coverage integration solutions within the region.

"We are delighted to have reached this agreement with Telestone. As one of China's leading providers of wireless coverage solutions, we will benefit greatly from their technological leadership and the depth of the products and services that they offer. We look forward to passing on these benefits to our existing customer base and strengthening our position as a leading wireless coverage service provider in Shandong Province," commented Mr. Lian Renguang, General Manager of Guolian.

Mr. Han Daqing, CEO of Telestone, said: "Our acquisition of Guolian will give us greater access to the Shandong market through Guolian's strong customer relationships. Telestone will continue to seek to grow its market share in China through both organic expansion and acquisitions that we believe will be value enhancing to our shareholders."

About Telestone Technologies Corporation

Telestone provides wireless communications coverage solutions primarily in the PRC. These solutions include products such as repeaters, antennas and radio accessories. Telestone also provides services that include project design, project management, installation, maintenance and other after-sales services. Telestone currently has approximately 556 employees. Additional information on the Company can be found at http://www.telestonecorp.com .

Statements about the Company's future expectations, including future revenue and earnings and all other statements in this press release, other than historical facts, are "forward-looking" statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties and are subject to change at any time. The Company's actual results could differ materially from expected results. In reflecting subsequent events or circumstances, the Company undertakes no obligation to update forward-looking statements.

For additional information please contact:

Todd Li, Board of Directors Officer

Telestone Technologies Corp.

Tel: +86-10-83670088 x1201

Email: liluqiang@telestone.com

Sissi Wang, Board of Directors Officer

Telestone Technologies Corp.

Tel: +86-10-83670088 x1203

Email: wangxiaolin@telestone.com

Source: Telestone Technologies Corporation Ltd.
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