Telestone Technologies Corporation Wins China Mobile Communications Corporation Liaoning Branch's Yingkou 'Campus City' Contract with Telestone's Proprietary WFDS(TM) Technology

WFDS(TM) contract will service approximately 20,000 2G and 3G mobile users, more than 5,000 Wi-Fi users and 47 buildings with more than 3,000 internet access points

Contract valued at $4 million and represents the Company's 43rd WFDS(TM) installation

Jan 20, 2010, 08:00 ET from Telestone Technologies Corporation

BEIJING, Jan. 20 /PRNewswire-Asia-FirstCall/ -- Telestone Technologies Corporation (Nasdaq: TSTC; "Telestone" or the "Company") a leading developer of local access network solutions, products, and engineering services announced today it has secured a new project from China Mobile Communications Corporation ("CMCC') Liaoning branch to install the Company's Wireless Fiber Optic Distribution System ("WFDS(TM)") for CMCC's customers at three colleges located in "Campus City" in Yingkou, Liaoning Province. Telestone's WFDS(TM) system will simultaneously provide Wi-Fi service in 47 buildings, high speed internet access for more than 3,000 homes and offices, in addition to 2/3G cellular service for more than 20,000 subscribers of CMCC communication services.

Telestone responded to the request for quotations in June 2009 and in January of 2010 won the contract to install its WFDS(TM) system to provide an uniform indoor and outdoor local access network for 2G, 3G, Wi-Fi and internet coverage to service the Campus City population. The WFDS(TM) system will deliver GSM900MHz, GSM1800MHz and TD-SCDMA 2100MHz 3G network wireless signals to all campus areas and also provide IP fixed line services such as; land-line phone services, Wi-Fi internet services, high-speed internet services and in the future, television programming to the location. This is the first time Telestone has provided an extensive WFDS(TM) access network system to a higher-education setting for a telecom carrier like CMCC.

"Less intrusion in our structures, easy maintenance and quick installation were some of the reasons we selected Telestone," stated Qingwei Zhang, Vice President of Campus City in Yingkou. "A system that can provide a variety of network services that would allow us to expand services from additional providers was also a consideration for us in the long term," Zhang concluded.

Telestone estimates the contract value at $4 million and will begin preliminary on-site installations in January 2010. The Company expects to complete the project by July 31st of 2010.

"The clear advantages of our system are gaining momentum with our 'Big 3' customers and end users in China," began Chairman and CEO Daqing Han of Telestone. "China has a unique telecommunications environment since each of our telecom customers have different network protocols. For traditional access network, technologies such as booster-antenna systems for wireless, LAN or Wi-Fi for IP, internet, and also twist wire for phone lines made the signal access to the remote area in local areas very complex and costly for all three of the telecom carriers. Universities are not immune to these complexities and we have identified large campuses as target markets for WFDS(TM) along with traditional residential areas. We are pleased to report that CMCC Liaoning and Campus City in Yingkou have seen the advantages of our systems and we anticipate a smooth and quick installation of our WFDS(TM) system," Han concluded.

About Telestone's WFDS(TM) Technology

Telestone's proprietary technology, Wireless Fiber-optics Distribution System(TM) (WFDS(TM)) is a local access network technology concept invented in 2005 to address the multi-signal cellular networks in China. WFDS(TM) systems and its related hardware components were approved by all three Chinese telecommunications companies in 2008 and further approved by the US-FCC in October of 2009. WFDS(TM) technology can deliver all three cellular signals in China (GSM, WCDMA & CDMA) in additional to Wi-Fi, direct access broadband, CATV, fixed line voice and data and closed circuit TV though a combination of fiber optic fixed lines, and multi-signal antennae. Telestone can install a WFDS(TM) network for both indoor and outdoor uses. Telestone Technologies contests that property owners favor technology solutions which can access to all the carriers' cellular signal but also be cost effective, scalable, and easy to install. Telestone estimates more than 50% its revenue will derive from WFDS(TM) technology based projects and equipment sales in 2010 and reports that WFDS(TM) the Company's highest margin product line.

About Telestone Technologies Corporation

Telestone is a leading innovator in local access network technologies and solutions. Telestone is a global company with 26 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 its third generation technology, WFDS(TM) (Wireless Fiber-Optics Distribution System), 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.

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.

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     Tel:   +1-201-887-0415

    Investor Relations:
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     HC International Inc.
     Tel:   +1-203-616-5144

SOURCE Telestone Technologies Corporation