BEIJING, Jan. 14, 2011 /PRNewswire-Asia-FirstCall/ -- Telestone Technologies Corporation (Nasdaq: TSTC) (the "Company"), a leading supplier of local access network solutions for communications networks in China, today released the following statement:

The Company has learned that an entity named The Forensic Factor has published an article on an investor website making various allegations against the Company.

The Company states that the author failed to contact the Company to verify the claims made before publishing the article, which contains many false and inaccurate claims relating to the Company's operations, industry performance, revenue recognition policies, revenues, accounting practices, earnings and financial disclosures, which display an incomplete understanding of the nature of the Company's business.  The Company views the article as an unjustified swipe at a reputable and successful Chinese business, and it is based on unsubstantiated and inaccurate statements and conclusions. The Company is currently weighing appropriate legal remedies against article's author.

The Company rejects any allegation that it acted improperly or that its accounting practices are unsound and not in accordance with generally approved accounting practices.  Furthermore, the Company rejects any allegation that it provided false or misleading information to investors or shareholders.  Telestone remains firmly committed to complying with all applicable rules, laws, and stock-exchange requirements.

About Telestone Technologies Corporation

Telestone is a leader and innovator in wireless local-access network technologies and solutions. The company has a global presence, with 30 sales offices throughout China and a network of international branch offices and sales agents. For more than 10 years, Telestone has installed radio-frequency (RF)-based 1G and 2G systems throughout China for its leading telecommunications companies. After intensive research on the needs of carriers in the 3G age, Telestone developed and commercialized its proprietary third-generation local-access network technology, WFDS(TM) (Wireless Fiber-optic Distribution System), which provides a scalable, multi-access local access network solution for China's three cellular protocols. Telestone also offers services including project design, manufacturing, installation, maintenance and after-sales support. The Company has approximately 1,200 employees.

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.

SOURCE Telestone Technologies Corporation

Back to top

RELATED LINKS
http://www.telestone.com/english/index.asp