Based on unaudited, preliminary results, Telestone expects to report 2010 annual revenues of $130.5 to $132.5 million and non-GAAP net income of $30.0 to $31.5 million. These results exceed guidance of $129.4 million in revenue and $22.9 million in net income for the 2010 business year. The non-GAAP results exclude stock payments related to acquisitions and employee stock-based compensation expense. Telestone expects to report audited GAAP and non-GAAP results in late March 2011.

"We are pleased that 2010 was such a stellar year for Telestone, with our preliminary financial results exceeding our guidance," commented Mr. Daqing Han, Chairman and Chief Executive Officer of Telestone. "In 2011, we look forward to further growth in revenues and net income as we expand our business, in particular from the deployment of our proprietary Wireless Fiber-Optic Distribution System (WFDS) technology in China and internationally."

Separately, Telestone will host an investor conference call at 9:00 a.m. EST on Monday, January 24, 2011 to address preliminary 2010 results and answer recent investor questions regarding the Company's accounting practices and other issues.

Mr. Daqing Han, Chairman and Chief Executive Officer, and Mr. Richard Wu, Vice President of Finance, will host the call.

To participate in the conference call, please dial one of the following numbers five to ten minutes prior to the scheduled conference call time:

Please dial in at least 10 minutes before the call to ensure timely participation. This call is also being webcast and can be accessed by clicking on this link:

http://www.zoominto.com/software/ieplugi...http://";

As reported by Xinhua News Agency on January 13, 2010, "In a State Council meeting, a government directive and 5-year plan was issued to accelerate the integration of telecommunications, TV & radio broadcasting and internet access networks. The meeting further stated that the integration of the three systems will provide China with a better platform for information sharing and stimulate the economy. The meeting confirmed that they will support local companies to meet the directive's integration goals. The directive is in five key objectives:

 1. The integration should be tested first at locations or urban regions
 with sufficient technical and financial resources before expanding the
 program nationwide.
 2. The construction and development of networks should include upgrades in
 equipment and facilities, and more coverage in rural areas.
 3. The government will greatly encourage and facilitate the industry's
 development and provide oversight to the marketplace.
 4. The government is willing to release policies that will better assist
 companies and organizations in the integration process."
 (http://news.xinhuanet.com/politics/2010-... )

"We anticipated this directive for our industry and feel confident we have developed the technology and business strategies to meet the directive's goals," began Han Daqing, Chairman and CEO of Telestone Technologies. "The integration of delivery networks for telecommunications, media and Internet will avail significant opportunities for the entire industry and we witnessed several industry stocks listed on the Chinese stock exchanges appreciate so quickly, at one point they were halted on the day news of the directive was published. The introduction of our Wireless Fiber Optic Distribution System (WFDS(TM)) addresses this exact challenge for our industry. Simply stated, the challenge is to consolidate services across a network that can provide the bandwidth and speed to deliver all three of China's cellular protocols, broadcast TV, media, internet and voice. We are closely monitoring the new initiatives and further statements made by Beijing in support of these directives. The last time Beijing made statements like this, the 3G industry accelerated very quickly after which time Beijing first identified the need for 3G coverage in China. China then availed more than $70 billion in funds to upgrade China's 1G and 2G infrastructure to 3G. We anticipate a similar path with these new directives, and are confident our technologies and track record of more than 43 successful WFDS(TM) installations will position us at the forefront of this development," Han concluded.

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 and is currently engaged in 3G system deployment for the wireless carriers. 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 and financial results 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:
 Ren Hu, Board Secretary
 Tel: +1-201-887-0415
 Email: huren@telestone.com

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

"The pace of network installations for the nationwide 3G roll-out accelerated significantly during 2009," opened Chairman and CEO, Mr. Han Daqing. "The fourth quarter of 2009 was the largest contributor of our revenue for the year and consistent with our expectations. We are confident in achieving our revenue guidance of $70 million for 2009, which will be a record for our company. We also made further progress during the quarter in collecting long-term receivables from our previous customers who were subsequently absorbed by the remaining "Big 3" Wireless Carrier," Han concluded.

The Company will do its best to report 2009 year end numbers as early as possible. Management will host a conference call to accompany the earnings release and further details surrounding this event will be forthcoming.

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 and is currently engaged in 3G system deployment for the wireless carriers. 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 and financial results 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:
     Ren Hu, Board Secretary
     Tel:   +1-201-887-0415
     Email: huren@telestone.com

    Investor Relations:
     John Mattio
     HC International Inc.
     Tel:   +1-203-616-5144
     Email: john.mattio@hcinternational.net

    Date:       February 10, 2010
    Time:       10:55 am PT
    Location:   Crystal Room, The Fairmont Hotel, San Francisco, CA.
    Presenters: Mr. Daqing Han, Chairman and CEO
                Mr. Ren Hu - Board Secretary

For more information on the conference, contact your Thomas Weisel Partners representative. To register please contact TWP Corporate events at 415-364-2500 or via email at twpcorporateevents@tweisel.com.

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 and is currently engaged in 3G system deployment for the wireless carriers. 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 and financial results 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:
     Ren Hu, Board Secretary
     Tel:   +1-201-887-0415
     Email: huren@telestone.com

     Investor Relations:
     John Mattio
     HC International Inc.
     Tel:   +1-203-616-5144
     Email: john.mattio@hcinternational.net

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.

    For further information, contact:

    Company:
     Ren Hu, Board Secretary
     Tel:   +1-201-887-0415
     Email: huren@telestone.com

    Investor Relations:
     John Mattio
     HC International Inc.
     Tel:   +1-203-616-5144
     Email: john.mattio@hcinternational.net

  -- Third quarter 2009 revenues increased 124.7% to $18.9 million
       year-over-year; gross margins were 52.7%
    -- Third quarter 2009 net income increased 281.8 % to $4.2 million
       year-over-year with net margins of 22.3%; EPS was $0.41 vs. $0.11
       year-over-year
    -- For the nine months ended September 30, 2009, revenues increased 86.1%
       to $38.9 million year-over-year; net income increased 96.8% to
       $7.4 million year-over-year; EPS was $0.71 versus $0.36 year-over-year
    -- WFDS(TM) product represents about 20% of third quarter revenues
    -- Accounts receivable decreased 19.6% to $59.2 million for the third
       quarter ended September 30, 2009, compared to $70.8 million for the
       second quarter ended June 30, 2009
    -- Telestone reaffirms guidance of $70.0 million in revenues for 2009
       based on strong order bookings for the balance of the year.



    SUMMARY FINANCIALS

    Third Quarter 2009 Results
                                Q3 2009            Q3 2008       CHANGE
    Net Sales            $ 18.9 million      $ 8.4 million      + 124.7%
    Gross Profit          $ 8.9 million      $ 3.9 million      + 128.2%
    Net Income            $ 4.2 million      $ 1.1 million      + 281.8%
    EPS (Fully Diluted)           $0.41              $0.11       +272.7%

    Nine Month 2009 Results
                         First 9 months     First 9 months
                                of 2009            of 2008       CHANGE
    Net Sales             $38.9 million      $20.9 million        +86.1%
    Gross Profit          $18.6 million      $10.5 million        +77.1%
    Net Income             $7.4 million       $3.7 million       +100.0%
    EPS (Fully Diluted)           $0.71              $0.36        +97.2%

Third Quarter Financial Results

Revenues for the third quarter ended September 30, 2009 increased 124.7% to $18.9 million compared to same period of 2008. Telestone revenues are a combination of equipment and service sales. Equipment sales, which totaled $11.1 million, are attributed to the Company's shipments of its proprietary 2G and 3G local wireless access network equipment, manufactured for specific customer site installations. Service revenue, which totaled $7.8 million, is a combination of billable system integration and installation charges by Telestone's project design and implementation engineers. Total revenue growth for the quarter was directly attributed to the Company's sales of 2G and 3G network installations throughout China. In addition, a growing contributor to the Company's revenues is its Wireless Fiber Option Distribution System(TM) (WFDS(TM)) which accounted for about 20% of Telestone's revenues for the quarter. WFDS(TM) systems provide "multi-play" capabilities for media, voice, fax, closed circuit TV, data and all three protocols of Chinese cellular signals over a fiber optic cable routed directly into an installation site. WFDS(TM) is a certified-technology by the three Chinese telecommunications companies; China Mobile, China Unicom and China Telecom, and was recently approved by the FCC of the United States in September of this year. The certification by FCC can allow installation of WFDS(TM) based systems in the U.S.

"We are very pleased with our third quarter results, which represents a record and key turning point for our business. We are also proud that our customer base in China, including the three major telecommunication suppliers, have accepted our WFDS(TM) technology as a viable market standard for 3G products," opened Han Daqing, CEO and Chairman of Telestone. "We anticipate WFDS(TM) installations will continue to accelerate as carriers come to prefer its functionality advantage over the traditional 3G network equipment. We anticipate this trend will continue throughout the balance of the year and into 2010 as we gain further market shares," stated Han.

Costs of goods sold were $10.0 million in the third quarter of 2009 which yielded gross profits of $8.9 million. Costs of goods are comprised of components used in the manufacturing of Telestone's 2G and 3G product line and installation costs of project management and labor costs at commercial and residential customer locations. Specifically, cost of equipment sales totaled $7.1 million, yielding gross margins of 36.0% while cost of services totaled $2.9 million, yielding gross margins of 62.8%. Blended gross margins were 47.2% compared to 46.9% for the third quarter of 2008.

Total operating expenses for the quarter were $3.3 million, or 18.0% of revenues. Third quarter operating expenses as a percentage of revenues decreased 9.20 percentage points compared to the same quarter in 2008. The decrease in percentage for operating expenses is primarily due to the fact that expenses are rather fixed in nature. As a result, operating income increased 223.6% to $5.5 million in the quarter compared to $1.7 million recorded in the third quarter of 2008. Telestone maintains a 24% effective income tax rate for the quarter. However the taxes paid in the third quarter were not only for the net income in the quarter, but also including taxes due in previous quarters. As a High and New Technology Enterprise in China, the Company expects its income tax rate to be 15% for a three-year period.

Net income for the third quarter ended September 30, 2009 increased 281.8% to $4.2 million compared to $1.1 million in the third quarter of 2008. Net income margins for the quarter were 22.5% compared to 13.3% recorded in the third quarter of 2008. Earnings per share were $0.41 on 10.4 million fully diluted shares issued and outstanding, an increase of 272% compared to $0.11 reported in the third quarter of 2008.

Nine-Month Financial Results

For the nine months ended September 30, 2009, revenues increased 86.1% to $38.9 million compared to $20.9 million reported for the same period of 2008. The China-based telecommunications companies' goals to upgrade more than 200 cities in China to a 3G network platform by the close of 2009 was one of the principal drivers of this growth. As announced in January of 2009, Beijing has allocated $41 billion as part of a telecommunications stimulus package to upgrade China's more than 700 million cellular subscribers to a 3G network platform by 2013. Though Telestone has agent relationships in 28 countries worldwide and plans to continue increasing this component of revenue streams, over 98% of the nine months in 2009 revenues are China-based.

"Given our visibility into new orders, we are confident that continued strong demand in China will enable us to meet our $70 million in revenue guidance for the year," confirmed Han Daqing. "With more than 900 million cell phone subscribers forecasted by 2013 in China, the requirement to upgrade the networks to 3G creates a tremendous opportunity for the telecom providers and is our first priority. Securing the U.S.-FCC approval for our WFDS(TM) technologies will enable us to begin both marketing and commercialization roll-out efforts in the Americas. While we recognize China will be the principal growth driver for our business in the immediate future, we are also excited about capitalizing on growth opportunities in international markets to drive incremental sales and further diversify our customer base."

Gross profits for the nine month period ended was $18.6 million, representing a 77.1% increase over $10.5 million for the same period of 2008. Gross margins for the first nine months of 2009 were 47.8% compared to 50.4% for the same period of 2008.

Net income for the nine months period was $7.4 million, a 100% increase over the same period of 2008. Earnings per share for the period were $0.71 compared to $0.36 for the same period of 2008.

Balance Sheet and Cash Flow Discussion

As of September 30, 2009, Telestone Technologies had cash and cash equivalents totaling $5.3 million compared to $7.9 million on December 31, 2008. The Company maintained a current ratio of 2.0 based on $75.0 million in current assets and $38.1 million in current liabilities with a working capital position of $36.9 million. On September 30, 2009, Telestone had $59.2 million in receivables compared to $70.8 million on June 30, 2009, a reduction of accounts receivable by 19.6%, while revenues grew significantly. The Company was able to reduce its days of sales by185 days to 405. However account receivables older than a year become long-term receivables which were $18.8 million as of the end of September 2009. Even with that included, the total DSO is still lower than that of the second quarter of 2009. We expect our DSO number to be around 360 by the end of the year. Included in accounts receivable and DSO are 10% of Telestone customers' contract value to provide warranty service on installations for a twenty-four months period, a value which per GAAP must remain on the Company's accounts receivable until paid in full. For the nine months period of 2009, the Company recorded zero (0) bad debts.

Stockholders' equity was $59.9 million as of September 30, 2009, a 14% increase compared to $52.4 million as of December 31, 2008.

Conference Call

To attend the call, please use the dial information below. When prompted, ask for the "Telestone Technologies Call" and/or be prepared to provide the conference ID.

Date: November 13, 2009 Time: 10:00am ET Conference Line Dial-In (U.S.): 1-877-941-8602 International Dial-In: 1-480-629-9811 Conference ID: 4182022

Please dial in at least 10-minutes before the call to ensure timely participation. A playback will be available through November 20th, 2009. To listen, please call 1-800-406-7325 within the United States or +1-303-590-3030 when calling internationally. Utilize the pass code 4182022 for the replay.

About Telestone Technologies Corporation

Telestone provides Local Access Network Solutions, products and engineering integration to telecom carriers. In terms of 2G technologies, Telestone is a main supplier in wireless access coverage infrastructure building for the GSM and CDMA network base on its RFPA technologies primarily in the PRC. The products; repeaters, line-amplifiers, antennas and radio accessories are all based on RFPA technologies. After intensive research on the demands of carriers in 3G technologies, based on its strong R&D capabilities in both wireless and Fiber-Optics, Telestone has invented its WFDS unification local access network solution and products which are highly welcomed by all telecom carriers and property owners. Telestone also provides services that include project design, project manufacturing, installation, maintenance and after-sales services. Telestone currently has approximately 1,200 employees.

For further information, please contact: Company: Ren Hu, Board Secretary Tel: +86-137-1872-8163 Email: arenhu@gmail.com Investor Relations: HC International Inc. John Mattio Tel: +1-203-616-5144 Email: john.mattio@hcinternational.net Appendix: Financial Statements of Telestone Technologies Corporation Condensed Consolidated Balance Sheets (Dollars in thousands except share data and per share amounts) (Unaudited) As of As of September 30, December 31, 2009 2008 ASSETS US$'000 US$'000 Current assets: Cash and cash equivalents 5,288 7,866 Accounts receivable, net of allowance 59,208 62,136 Due from related parties 1,662 1,826 Inventories, at lower of cost or market 6,930 7,843 Prepayment 1,770 2,347 Other current assets 98 1,352 Total current assets 74,956 83,370 Long-term receivables 18,774 -- Goodwill 3,119 3,119 Property, equipments and software, net 1,162 1,050 23,055 4,169 Total assets 98,011 87,539 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Short-term bank loans 3,656 2,918 Accounts payable ¨C trade 15,338 11,776 Customer deposits for sales of equipment 1,232 739 Due to related parties 1,708 1,673 Taxes payable 6,700 6,805 Accrued expenses and other accrued liabilities 9,480 11,197 Total current liabilities 38,114 35,108 Commitments and contingencies -- -- Stockholders' equity: Preferred stock, US$0.001 par value, 10,000,000 shares authorized, no shares issued -- Common stock and paid-in-capital, US$0.001 par value: Authorized - 100,000,000 shares as of September 30, 2009 and December 31, 2008 -- Issued and outstanding - 10,404,550 shares as of September 30, 2009 and December 31, 2008 11 11 Additional paid-in capital 18,989 18,989 Dedicated reserves 4,513 3,787 Other comprehensive income 5,677 5,573 Retained earnings 30,707 24,071 Total stockholders' equity 59,897 52,431 Total liabilities and stockholders' equity 98,011 87,539 Condensed Consolidated Statements of Operations and Other Comprehensive Income Three months ended Nine months ended September 30, September 30, 2009 2008 2009 2008 US$'000 US$'000 US$'000 US$'000 Operating revenues: Net sales of equipment 11,099 5,797 21,504 12,112 Service income 7,792 2,610 17,413 8,832 Total operating revenues 18,891 8,407 38,917 20,944 Cost of operating revenues: Cost of net sales (7,099) (3,586) (13,738) (7,116) Cost of service (2,878) (879) (6,558) (3,281) Total cost of operating revenues (9,977) (4,465) (20,296) (10,397) Gross income 8,914 3,942 18,621 10,547 Operating expenses: Sales and marketing 2,007 1,430 6,035 4,028 General and administrative 1,182 571 2,503 1,824 Research and development 138 208 467 461 Depreciation and amortization 79 76 253 237 Total operating expenses 3,406 2,285 9,258 6,550 Operating income 5,508 1,657 9,363 3,997 Interest expense (40) (112) (170) (255) Other income, net 83 (28) 372 915 Income before income taxes 5,551 1,517 9,565 4,657 Income taxes (1,308) (395) (2,203) (917) Net income 4,243 1,122 7,362 3,740 Other comprehensive income Foreign currency translation adjustment (27) 26 104 1,515 Comprehensive income 4,216 1,148 7,466 5,255 Earnings per share: Weighted average number of common stock outstanding Basic 10,404 10,404 10,404 10,404 Dilutive effect of warrants -- 20 -- 59 Diluted 10,404 10,424 10,404 10,463 Net income per share of common stock Basic and diluted (US$) 0.41 0.11 0.71 0.36 Condensed Consolidated Statements of Changes in Stockholders' Equity (Dollars in thousands except share data and per share amounts) Common stock Additional Number of paid-in shares Amount capital US$'000 US$'000 Balance at January 1, 2009 10,404,550 11 18,989 Net income Foreign currency translation adjustment Transfer to dedicated reserves Balance at September 30, 2009 10,404,550 11 18,989 Other compre- Dedicated hensive Retained reserves income earnings Total US$'000 US$'000 US$'000 US$'000 Balance at January 1, 2009 3,787 5,573 24,071 52,431 Net income 7,362 7,362 Foreign currency translation adjustment 104 104 Transfer to dedicated reserves 726 (726) -- Balance at September 30, 2009 4,513 5,677 30,707 59,897 Condensed Consolidated Statements of Cash Flows (Dollars in thousands except share data and per share amounts) Nine months ended September 30, 2009 2008 US$'000 US$'000 Cash flows from operating activities Net income 7,362 3,740 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Loss on disposal of property, plant and equipment (15) Depreciation and amortization 253 237 Allowance for doubtful accounts 1,163 337 Changes in assets and liabilities: Accounts receivable (17,009) (8,349) Due from related parties 164 55 Inventories 913 881 Prepayment 577 (330) Other current assets 1253 (751) Accounts payable 3,562 1,693 Customer deposits for sales of equipment 493 (64) Due to related parties 35 (595) Taxes payable (105) (66) Accrued expenses and other accrued liabilities (1,718) 3,335 Net cash used in operating activities (3,057) 108 Cash flows from investing activities Purchase of property, plant and equipment (366) (32) Proceeds from disposal of property, plant and equipment -- 49 Net cash used in investing activities (366) 17 Cash flows from financing activities Repayment of short-term bank loans (2,918) (2,142) Repayment of long-term loan from related parties -- (27) Proceeds from new short-term bank loans raised 3,656 2,856 Net cash used in financing activities 738 687 Net increase (decrease) in cash and cash equivalents (2,685) 812 Cash and cash equivalents, beginning of the period 7,866 5,473 Effect on exchange rate changes 107 42 Cash and cash equivalents, end of the period 5,288 6,327 Supplemental disclosure of cash flows information Interest received 7 23 Interest paid (76) 187 Tax paid (2,587) 54

Mr. Ren Hu, Board Secretary, is scheduled to present at 10:00 am ET on Friday, November 20, 2009 and will be available for one-on-one meetings with conference attendees throughout the day. Mr. Hu will discuss the Company's progress as a leader in wireless access network solution technology. He will also detail the unification of local access networks on the Company's new technology, WFDS (Wireless Fiber-optics Distribution System), and its plans to accelerate expansion into international markets.

For more information on the conference, contact Lindsay Zucherman at (212) 702-6577, email: Lindsay.Zuckerman@bmur.com or visit http://www.breanmurrayca... .

About Telestone Technologies Corporation

Telestone provides local access network solutions, products and engineering integration to telecom carriers. In terms of 2G technologies, Telestone is a main supplier in wireless access coverage infrastructure building for the GSM and CDMA network base on its RFPA technologies primarily in the PRC. The products: repeaters, line-amplifiers, antennas and radio accessories are all based on RFPA technologies. After intensive research on the demands of carriers in 3G technologies, based on its R&D capabilities in both wireless and fiber-optics, Telestone has invented the WFDS technology which provides the unification solution for local access networks and products. Telestone also provides integrated services that include project design, project manufacturing, installation, maintenance and after-sales services. Telestone currently has approximately 1,200 employees.

    For further information, contact:

     Company:
     Ren Hu, Board Secretary
     Tel:   +86-137-1872-8163
     Email: arenhu@gmail.com

     Investor Relations:
     John Mattio
     HC International Inc.
     Tel:   +1-203-616-5144
     Email: john.mattio@hcinternational.net

Starting in 2008, the Chinese government has revised and raised the standards for national high and new technology organizations. The new standards are higher than the previous set of standards as they now provide specific and quantitative requirements in the capabilities of a company's R&D team and R&D results, such as the number of patents, investment in R&D, participation in research projects organized by the national government, and the sales revenue of the equipment independently developed by a company. There were approximately 30,000 certified enterprises in Beijing last year under the previous standards. Under the more stringent set of new criteria, there are only 110 companies, including Telestone, that have been certified in the first batch of certifications in 2008.

Following the release of the new standards, the Beijing Municipal Government will issue a series of preferential policies that support the certified enterprises. Such policies include tax exemption or tax rate reduction, special market permission and bank credit support, as well as individual preferential treatments to the key personnel or key posts of the enterprises.

Telestone has also obtained the qualification of "Engineering Technology Center" from the Beijing Municipal Government. Over the years, there have been approximately 100 enterprises awarded such a qualification, including state-run and private enterprises and many construction enterprises. As with the Company's certification of High and New Technology Enterprise, the Company expects to be entitled to additional support and preferential policies.

"We are pleased that the local Beijing authorities have certified our company as a New and High Technology Enterprise," began Mr. Han Daqing, Chairman and CEO of Telestone. "We believe that this certification reaffirms our position in the market as a valued supplier of telecommunication technologies and services for China's access network market and will have a very positive impact on our future marketing and business expansion efforts. We are equally proud of our team's efforts to develop technologies to meet the demand of China's mobile subscribers, the largest base of subscribers in the world, and the requirements of the telecommunication carriers who rely on companies like Telestone to keep pace with ever-changing communication networks and the products."

About Telestone Technologies Corporation

Telestone provides Local Access Network Solutions, products and engineering integration to telecom carriers. In terms of 2G technologies, Telestone is a main supplier in wireless access coverage infrastructure building for the GSM and CDMA network base on its RFPA technologies primarily in the PRC. The products; repeaters, line-amplifiers, antennas and radio accessories are all based on RFPA technologies. After intensive research on the demands of carriers in 3G technologies, based on its R&D capabilities in both wireless and Fiber-Optics, Telestone has invented its WFDS unification local access network solution and products. Telestone also provides services that include project design, project manufacturing, installation, maintenance and after-sales services. Telestone currently has approximately 1,200 employees.

    For further information, contact:

     Company:
     Ren Hu, Board Secretary
     Tel:   +1-201-877-0415
     Email: arenhu@gmail.com

     Investor Relations:
     John Mattio
     HC International Inc.
     Tel:   +1-203-616-5144
     Email: john.mattio@hcinternational.net

Mr. Ren Hu, Board Secretary, is scheduled to present at 14:30 ET on Wednesday, October 28, 2009, and will be available for one-on-one meetings with conference attendees throughout the one-day event. Mr. Hu will discuss the Company's progress as a leader in wireless access network solution technology in China. He will also detail the unification of local access networks on the Company's new WFDS (Wireless Fiber-optics Distribution System) technology and its plans to accelerate expansion into international markets.

For more information on the conference, contact Dan Charnas at dan@adam-friedman.com or visit http://www.adam-friedman...

About Telestone Technologies Corporation

Telestone provides local access network solutions, products and engineering integration to telecom carriers. In terms of 2G technologies, Telestone is a main supplier in wireless access coverage infrastructure building for the GSM and CDMA network base on its RFPA technologies primarily in the PRC. The products; repeaters, line-amplifiers, antennas and radio accessories are all based on RFPA technologies. After intensive research on the demands of carriers in 3G technologies, based on its R&D capabilities in both wireless and Fiber-Optics, Telestone has invented its WFDS unification local access network solution and products. Telestone also provides services that include project design, project manufacturing, installation, maintenance and after-sales services. Telestone currently has approximately 1,200 employees.

    For further information, contact:

     Company:
     Ren Hu, Board Secretary
     Tel:   +1-201-877-0415
     Email: arenhu@gmail.com

     Investor Relations:
     John Mattio
     HC International Inc.
     Tel:   +1-203-616-5144
     Email: john.mattio@hcinternational.net

Mr. Ren Hu, Board Secretary, is scheduled to present at 10:00am ET on Wednesday, October 14th, 2009 and will be hosting one-on-one meetings with conference attendees throughout the three-day event. Mr. Hu will discuss the Company's progress as a wireless access network, IP wideband access and CATV access network installer for the demand of the 3G rollout in China. The Company will also detail the unification of local access networks on their new technology WFDS (Wireless Fiber-optics Distribution System) and its plans to accelerate expansion into international markets.

Registration is by invitation and registration is mandatory. For more information on the conference, contact your Roth representative or visit http://www.roth.com .

About Telestone Technologies Corporation

Telestone provides Local Access Network Solutions, products and engineering integration to telecom carriers. In terms of 2G technologies, Telestone is a main supplier in wireless access coverage infrastructure building for the GSM and CDMA network base on its RFPA technologies primarily in the PRC. The products; repeaters, line-amplifiers, antennas and radio accessories are all based on RFPA technologies. After intensive research on the demands of carriers in 3G technologies, based on its strong R&D capabilities in both wireless and Fiber-Optics, Telestone has invented its WFDS unification local access network solution and products which are high welcomed by all telecom carriers and property owners. Telestone also provides services that include project design, project manufacturing, installation, maintenance and after-sales services. Telestone currently has approximately 1,200 employees.

    For further information, contact:

    Company:
    Ren Hu, Board Secretary
    Tel:   +1-201-877-0415
    Email: arenhu@gmail.com

    Investor Relations:
    Peter Selzberg
    Hayden IR
    Tel:   +1-212-946-2849
    Email: peter@haydenir.com

Mr. Daqing Han, Chairman and CEO, and Mr. Ren Hu, Board Secretary, are scheduled to present at 8:30am ET on Tuesday September 29 and are available to host one-on-one meetings with conference attendees throughout the one-day event. Mr. Han and Mr. Hu will discuss the Company's progress as a wireless network installer for the demand of the 3G rollout in China, the Company's success with its patented, fiber-optic, commercial and residential hard-line network and its plans to accelerate expansion into international markets. Registration is mandatory. For more information on the conference, contact your Maxim Group representative. To register please visit http://www.maximgrp.com/ or contact Janet Fox at 516-396-3403 or via email at jfox@maximgrp.com .

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 1,200 employees.

    For further information, contact:

     Company:
     Ren Hu, Board Secretary
     Tel:   +1-201-877-0415
     Email: arenhu@gmail.com

     Investor Relations:
     Peter Selzberg
     Hayden IR
     Tel:   +1-212-946-2849

Mr. Hu will provide an overview of the company and will highlight their market positioning in China's evolving wireless communication industry.

Company presentations will be webcast live and archived for 90 days at http://www.RedChip.com.

For additional information or to schedule a one-on-one meeting with Telestone at this event, please contact Jon Cunningham at 407-644-4256, Ext. 107, or email conference@redchip.com.

About Telestone Technologies Corporation

Telestone provides wireless communications coverage solutions primarily in the PRC. These solutions include system integration with proprietary technology and project implementation with telecom products such as repeaters, antennas, amplifiers and radio accessories that the company develops and manufactures.

About RedChip Companies, Inc.

RedChip Companies is an international, small-cap research and financial public relations firm headquartered in Orlando, Florida; with affiliate offices in Qingdao, China; Paris, and San Diego. Since 1993, RedChip has been a source for small-cap research and investor awareness services for emerging growth companies, delivering concrete, measurable results for its clients through its extensive national and international network of small-cap institutional and retail investors. To learn more about RedChip, please visit http://www.RedChip.com.

The RedChip Companies, Inc. logo is available at http://www.globenewswire...

Telestone Technologies Corporation
Ren Hu
  (201) 887 0415
  arenhu@gmail.com
Dan Shang
  +86-10-8367-0088, x1233
  zongbushangdan@telestone.com
Jean Wen
  +86-10-8367-0088, x1232
  wenjing@telestone.com

BEIJING, Aug. 13 /PRNewswire-Asia/ -- Telestone Technologies Corporation ('Telestone', the 'Company' or 'we') (Nasdaq: TSTC), a leading developer and provider of wireless communication coverage solutions based in the People's Republic of China, today announced its unaudited financial results for the second quarter of 2009.

    Second Quarter Highlights:
    -- Revenue for the quarter of approximately US$12.13 million, an increase
       of 100.56% from the second quarter of 2008.
    -- Gross income of approximately US$5.0 million, an increase of 45.09%
       from the second quarter of 2008.
    -- Net income of approximately US$1.97 million, an increase of 10.79% from
       the second quarter of 2008.

'I am very glad to announce our second quarter financial results. Our total revenue was approximately $12.13 million, increasing by 100.56% compared with the same period of 2008,' Mr. Han Daqing, Chairman and Chief Executive Officer of Telestone commented. Mr. Han stated, 'This significant increase is attributed to the construction of the 3G system in China. So far, we believe we have been making full use of this business opportunity. In order to maintain our position in the wireless telecommunication industry, we will continue to improve our technology, business management and market exploration for the benefits of our stockholders.'

Our major achievements in the second quarter are as follows:

First, regarding marketing development, we believe that our strategic cooperation with Huawei Technologies Corp has achieved further development, which is building a solid foundation for future market expansion, especially for overseas market development. We believe that this development has a positive effect on our customer base growth.

Second, we have improved our WFDSTM technology and products. As a result, the Company's technology center compiled a catalogue of WFDSTM products that have achieved the transition from our advanced research achievements to actual productivity. Due to our technology, we have attained certain achievements, including having six products of Telestone being selected into the Chinese government's purchase list of Zhongguancun self-developed products. In addition, our trademark has been recognized as a well-known trademark of Beijing by the local Industry and Commerce Bureau. Also, We have won the title of A-Rated Good Credit enterprise, which entitles us to credits guaranteed by Beijing Zhongguancun Sci-tech Guaranty Co. funded by the Chinese government.

Third, we believe that we have improved our measures to collect accounts receivables and enhanced our expense management. We have been taking a variety of measures to collect accounts receivables. During the reporting period, more than RMB 22 million of overdue accounts receivables had been collected and compared with the first quarter of 2009, accounts receivable turnover has improved by nearly 30%. We also have enhanced our expense management. As a result, our general and administrative expenses decreased by 18%, as compared to the previous fiscal quarter of 2008.

Second Quarter Financial Results

Revenue

For the three months and six months ended June 30, 2009, our revenues were approximately $ 12.13 million and $20.03 million, representing increases of 100.56% and $59.74%, respectively, as compared to the same periods in 2008. The revenue increase is due to the telecom carriers' increase of their investments in 3G fixed assets. Accordingly, we have more business opportunities in 3G indoor coverage projects and equipment sales.

Gross Profit and Gross Profit Margin

For the three months and six months ended June 30, 2009, our gross profit was approximately $5.0 million and $9.7 million, representing an increase of 45.09% and an increase of 46.96%, respectively, as compared to the same periods of 2008. Our gross margin for the three months and six months ended June 30, 2009 were 41.28% and 48.47%, respectively. Our gross profit increase during the reporting period is attributable to the same factors as the increase in revenue.

Net Income

For the three and six months ended June 30, 2009, our net income was $1.97 million and $3.1 million, respectively, representing increases of 10.79% and 19.14%, respectively, as compared to the same periods in 2008.

Business Outlook

We believe the Chinese government's investment in the construction of the 3G system, which will cost approximately $60 billion over three years, presents an excellent opportunity for our business development. With our technology, close relationships with the telecom operators in China and experienced management team, we believe that we will continue to demonstrate increasingly impressive growth in the future.

Conference Call

Telestone's senior management team will host a conference call and audio webcast at 8:00 am U.S. Eastern Time/5:00 am U.S. Pacific Time/8:00 pm Beijing time on August 14, 2009. The conference call will last for approximately one hour.

    The dial-in information is:

    U.S. Participants:          +1-800-860-2442
    International Participants: +1-412-858-4600
    Passcode for all:           Telestone

A live audio webcast of the conference call will also be available through the following link:

Current liabilities:
Short-term bank loans 3,652 2,918
Accounts payable - Trade 19,101 11,776
Customer deposits for sales of equipment 908 739
Due to related parties 1,707 1,673
Taxes payable 5,483 6,805
Accrued expenses and other accrued liabilities 10,399 11,197

Total current liabilities 41,250 35,108

Commitments and contingencies -- --

Stockholders' equity:
Preferred stock, US$0.001 par value,
10,000,000 shares authorized, no shares issued -- --
Common stock and paid-in-capital, US$0.001
par value:
Authorized - 100,000,000 shares as of June
30, 2009 and December 31, 2008 -- --
Issued and outstanding - 10,404,550 shares
as of June 30, 2009 and December 31, 2008 11 11
Additional paid-in capital 18,989 18,989
Dedicated reserves 4,133 3,787
Other comprehensive income 5,704 5,573
Retained earnings 26,844 24,071

Total stockholders' equity 55,681 52,431

Total liabilities and stockholders' equity 96,931 87,539




Condensed Consolidated Statements of Changes in Stockholders' Equity
For the 3 months ended March 31, 2009
(Dollars in thousands except share data and per share amounts)


Common stock
Additional
Number paid-in Dedicated
of shares Amount capital reserves
US$'000 US$'000 US$'000
Balance at January 1,
2009 10,404,550 11 18,989 3,787

Net income -- -- -- --
Foreign currency
translation adjustment -- -- -- --
Transfer to dedicated
reserves -- -- -- 346

Balance at June 30,
2009 10,404,550 11 18,989 4,133


Other
comprehensive Retained
income earnings Total
US$'000 US$'000 US$'000

Balance at January 1,
2009 5,573 24,071 52,431

Net income -- 3,119 3,119
Foreign currency
translation adjustment 131 -- 131
Transfer to dedicated
reserves -- (346) --

Balance at June 30, 2009 5,704 26,844 55,681




Condensed Consolidated Statements of Cash Flows
For the 6 months ended June 30, 2009 and 2008
(Dollars in thousands except share data and per share amounts)

Six months ended June 30,
2009 2008
US$'000 US$'000
Cash flows from operating activities
Net income 3,119 2,618
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Loss on disposal of property, plant and
equipment -- 1
Depreciation and amortization 174 161
Allowance for doubtful accounts 283 200

Changes in assets and liabilities:
Accounts receivable (8,644) (5,216)
Due from related parties 398 34
Inventories (2,734) 636
Prepayment (2,743) (397)
Other current assets 444 149
Accounts payable 7,325 383
Customer deposits for sales of equipment 169 530
Due to related parties 34 (579)
Taxes payable (1,321) 491
Accrued expenses and other accrued
liabilities (798) (340)

Net cash used in operating activities (4,294) (1,329)

Cash flows from investing activities
Purchase of property, plant and equipment (371) (27)
Proceeds from disposal of property, plant and
equipment -- 23

Net cash used in investing activities (371) (4)

Cash flows from financing activities
Repayment of short-term bank loans (2,918) (16)
Proceeds from short-term bank loan 3,652 714

Net cash used in financing activities 734 698

Net decrease in cash and cash equivalents (3,931) (635)

Cash and cash equivalents, beginning of the
period 7,866 5,473
Effect on exchange rate changes (33) 15

Cash and cash equivalents, end of the period 3,902 4,853

Supplemental disclosure of cash flows
information
Interest received 7 2
Interest paid (65) (59)
Tax paid (2,486) (50)

SOURCE Telestone Technologies Corporation

BEIJING, March 30 /PRNewswire-Asia-FirstCall/ -- Telestone Technologies Corporation Ltd. ("Telestone") (Nasdaq: TSTC - News), a leading developer and provider of wireless communication coverage solutions based in the People's Republic of China, today announced its unaudited financial results for the fourth quarter and full year of 2008.

    Fourth Quarter Highlights:
    -- Revenue for the quarter increased to US$14.385 million, up 13.94%
       From the same quarter in 2007.
    -- Gross profit increased 22.17% year-over-year to US$7.649 million.
    -- Net income of US$3.3 million, up 42.46% from the same quarter in
       2007.

    Full Year 2008 Highlights:
    -- Our revenue for the year ended December 31, 2008 was $35,329,000,
       representing an increase of approximately 5.21% from the previous
       year.
    -- Our gross margin on product sales and services sales was 51.50%
       in 2008, as compared to 50.76% in 2007. Our gross margin was
       nearly unchanged as compared with the previous year.
    -- Our gross profit on product sales and services sales was $18,196,000,
       representing an increase of 6.76% as compared to $17,044,000 for the
       previous year.
    -- Our consolidated net income increased by 16.74% to $7,049,000 for

"I am extremely pleased that we have maintained growth in our performance even when the global economy has been suffering a recession, and while the earthquake and the restructuring of China's telecom industry has brought about some negative impact. We have maintained growth in our gross profit and net income. At the same time, the technology of our new product WFDS has been further refined. I believe in the following years when China increases its investments in the telecommunications industry, due to its advantages accumulated, Telestone will become the market leader," commented Mr. Han Daqing, Chairman and Chief Executive Officer of Telestone.

Full Year 2008 Financial Results:

We derive our revenues primarily from capital expenditures made by the PRC's telecommunications carriers. Our operating revenues are composed of sales of wireless equipment and service sales that include system integration, engineering services, technical support, wireless network optimization and network maintenance.

Our consolidated net income increased by 16.74% to $7,049,000 for the year ended December 31, 2008, as compared to the prior fiscal year. This increase is attributable to an increase in revenue of 5.21% in fiscal year 2008 as compared to fiscal year 2007. For the year ended December 31, 2008, our net income before income tax increased by 9.79% to $8,823,000, as compared to $8,036,000 in 2007.

Recent Operational Highlights: Recent accomplishments include: Telestone Declares the Completion of Seven Olympic Clusters.

The projects established by Telestone included Magic Capital (an Olympic affiliated hotel), the Comprehensive Training Gymnasium of the Olympic Sports Center, the Olympic Sports Center Stadium, the Beijing Olympic Green Hockey Stadium, the Olympic Comprehensive Office Building and Energy Center, the T3A Terminal Building of Beijing Capital Airport and the China Athletic Training Base for the Disabled. The contracts are valued at more than one million dollars. Among these buildings, the China Athletic Training Base for the Disabled is operated with the Wireless Fiber Distribution System (WFDS), known as one of the leading indoor wireless coverage products in the world that is applicable to 2G, 3G, Broadband access and CATV networks.

The Latest Generation of Wireless Fiber Distribution Systems -- WFDS(TM) -- is Promoted by Telestone.

In 2008, Telestone launched a new generation wireless distribution system, WFDS(TM), which is a customer premises network and able to support all of the telecom networks.

Combining the technologies of wireless telecom and fiber telecom, WFDS(TM) is a type of all-optical network. This system supports all mobile telecom networks and also WLAN, FTTH, telephone networks, and video surveillance systems, amongst other networks. In addition, WFDS(TM) can be quickly installed and simply maintained, which realizes for customers coverage with comparatively low cost.

To validate the performance of the WFDS(TM) in real site application, a series of field tests had been carried out in Fujian province by China Mobile. The tests showed the product complied with the criteria of the Chinese mobile indoor network test, which not only includes the tests on the coverage quality of voice and data, voice quality, volume and switch, but includes a comprehensive evaluation on the projects operation, maintenance and cost. Telestone also announced that the proprietary WFDS solution was selected as a candidate for China Mobile's annual large scale purchase.

Telestone Wins Bids from Two Provincial Operators.

Telestone stood out in the current bidding of indoor coverage system in China Unicom Shanxi Branch and indoor distribution system integration program in China Telecom Inner Mongolia Branch, and won these bids. We believe that this is further evidence of Telestone's leading position in providing indoor coverage systems and indoor distribution system integration programs.

Business Outlook

Chinese telecom restructuring and the future issuance of 3G licenses in China with an investment in the construction of the 3G system of approximately $ 60 billion over three years, an average of approximately $20 billion per year, presents an excellent opportunity for our business development. With our advanced technologies, close relationships with the telecom operators in China and strong management team, we believe that we will continue to demonstrate increasingly impressive progress in the future.

Conference Call

The Company's management team will conduct a conference call on Tuesday, March 31, 2009 at 5:00 am (Pacific)/8:00 am (Eastern)/8:00 pm (Beijing/Hong Kong).

The Dial-in information is: U.S. Participants: +1-800-860-2442 International Participants: +1-412-858-4600 Passcode for all: Telestone

A live audio webcast of the conference call will also be available through the following link:

http://www.visualwebcaster.com/event...

A replay will be available after the end of the call from March 31 @ 10:00 AM ET through April 8 @ 9:00AM ET.

All participants please dial: U.S. Participants: +1-877-344-7529 (toll free) International Participants: +1-412-317-0088 Passcode: 429020

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 800 employees. For more information please visit http://www.telestone.com .

Safe Harbor Statement

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 further information please contact: Telestone Technologies Corporation Ltd. Nick Li Secretary of the Board Tel: +86-10-8367-0088 x1002 Email: nickl@telestone.com Ya Ding Tel: +86-10-8367-0088 x1231 Email: dingxiaoya@telestone.com Jean Wen Tel: +86-10-8367-0088 x1232 Email: wenjing@telestone.com

       the year ended December 31, 2

Telestone's senior management team will then host a conference call and audio webcast at 8:00 am U.S. Eastern Time/5:00 am U.S. Pacific Time/8:00 pm Beijing time on March 31, 2009. The conference call will last for approximately one hour.

    The Dial-in information is:

    U.S. Participants:          +1-800-860-2442
    International Participants: +1-412-858-4600
    Passcode for all:           Telestone

A live audio webcast of the conference call will also be available through the following link: http://www.visualwebcaster.com/event...

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 800 employees.

Safe Harbor Statement

Statements about Telestone'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. Telestone's actual results could differ materially from expected results. In reflecting subsequent events or circumstances, Telestone undertakes no obligation to update forward-looking statements.

    For further information please contact:

    Telestone Technologies Corporation Ltd.
     Nick Li
     Secretary of the Board
     Tel:   +86-10-8367-0088 x1002
     Email: nickl@telestone.com

     Ya Ding
     Tel:   +86-10-8367-0088 x1201
     Email: dingxiaoya@telestone.com

     Jean Wen
     Tel:   +86-10-8367-0088 x1202
     Email: wenjing@telestone.com

SOURCE Telestone Technologies Corporation

Source: PR Newswire (March 16, 2009 - 8:00 AM EDT)

The contract from Shandong Mobile would have contributed revenue from sales of equipment of $4 million. Sales revenue from this contract would have reached $7 million if the project included engineering services. This contract will not be counted in the sales revenue of 2008.

Han Daqing, Chairman and CEO of Telestone commented: ''We expected large increases in the income for the year 2008, but due to the above factors, we did not reach our projected profits in our guidance. I, however, believe that our growth will increase in 2009. With the recent issuance of 3G licenses, we believe that China Mobile, China Telecom and China Unicom will invest approximately $41 billion in total for the construction of their own 3G networks. Telestone will benefit greatly from its advantages in technology and production. We are confident to reach our guidance for 2009.''

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 800 employees. For more information please visit http://www.telestone.com .

Safe Harbor Statement

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 further information, please contact:

     Telestone Technologies Corporation Ltd.
     Jean Wen
     Tel:   +86-10-8367-0088 x1202
     Email: wenjing@telestone.com

     Nick Lee
     Secretary of the Board
     Tel:   +86-10-8367-0088 x1002
     Email: nickl@telestone.com

SOURCE Telestone Technologies Corporation

Source: PR Newswire (February 23, 2009 - 8:02 AM EST)

After almost half a year's marketing preparation, the first set of WFDS(TM) was installed in the mobile telecommunication network of Comcel and successfully passed the test. In the process of the installation and test, Telestone got close and effective cooperation from Comcel. During and after the test, WFDS(TM) has received positive response from the operator and partners of Telestone in South America. The operator was highly complimentary about the excellent performance of WFDS(TM) and commented: 'WFDS(TM) has great technical superiority when compared with the products in the same class and has a promising market prospective in South America.' It indicates that WFDS(TM) has gained the entry of the Colombian Telecom market. It is believed that Colombian indoor network construction will kick off in the near future and shows great potential for growth. Technology with high quality and a good price provides a hopeful prospect in the market.

Comcel is one of the subsidiaries of American Mobile, the biggest telecom operator in Latin America. This successful trial not only indicates that WFDS(TM) has been accepted by the operator and received full confidence from the operator in Columbia, but also sets a milestone for the market promotion of Telestone's WFDS(TM) in Middle and South America and other countries.

Han Daqing, Chairman and CEO of Telestone, commented: 'The test result is not only strong evidence of the technical superiority of WFDS(TM), but also a solid foundation for Telestone's participation in tender of Comcel in 2009.'

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 800 employees.

For more information visit http://www.telestone.com .

Safe Harbor Statement

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 further information please contact:

    Telestone Technologies Corporation Ltd.
     Fang Cui
     Tel:   +86-10-8367-0088 ext.1202
     Email: cuifang@telestone.com

     Nick Lee
     Secretary of the Board
     Tel:   +86-10-8367-0088 ext.1002
     Email: nickl@telestone.com

SOURCE Telestone Technologies Corporation Ltd.

Source: PR Newswire (January 14, 2009 - 7:00 AM EST)

BEIJING, Nov. 13 /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 its unaudited financial results for the third quarter and nine months ended September 30, 2008.

    Nine months ended September 30, 2008 Highlights:

    -- Revenue of $20.9 million, flat compared to that of 2007.
    -- Net income for the period up 0.6% from 2007, to $3.7 million.
    -- Gross margins of 50.4%, almost same when compared to the 51.5% in
       2007.
    -- Gross profit of $10.5 million, a bit decrease of 2.2% from $10.8
       million in 2007.

    Third Quarter Highlights:

    -- Revenue for the quarter of $8.4 million, a bit decrease of 9.6%
       from $9.3 million in 2007.
    -- Net income decreased to US $1.1 million, down 39.9% from the same
       quarter in 2007.
    -- Gross margins of 46.9%, close to 50.0% of 2007.
    -- Gross profit of $3.9 million, down 15.13% compared to $4.6 million in
       2007.

'During the second and third quarter, China Unicom, China Telecom and China Netcom postponed their network expenditures due to Chinese government's announcement of the restructuring plan for Chinese telecommunication operators. What is more, because of the Beijing Olympic Games holding in Beijing, all the projects in Beijing, Shanghai, Tianjin and Qingdao were all ceased for more than two months during the third quarter. These two events affected us negatively, especially in the third quarter,' stated by Mr. Han Daqing, Chairman and Chief Executive Officer of Telestone, 'However, for nine months ended September 30, 2008, our revenue and net income are flat when compared to that of 2007. And with the consideration of the restructuring under way and the promotion plan for Telestone's new products, we believe that our revenues and profits in the year 2008 will continue to improve and eventually eclipse fiscal year 2007's revenue.'

Third Quarter Financial Results

Revenue

There is a slight downward of quarterly revenue of $8.4 million, 9.6% decline compared to $9.3 million in Q3 2007. This is largely due to the postponed network expenditures of China Unicom, China Telecom and China Netcom, which were severely affected during the quarter by the China Telecom Restructuring Plan. The decreased quarterly revenue is also because the Beijing Olympic Games was held in Beijing, Shanghai, Tianjin and Qingdao. In this connection, the projects in theses four cities were all ceased for more than two months during the third quarter. Usually, these cities contributed a lot to our revenues. However, we believe that, with the expected completion of the Restructuring and launch of the 3G wireless network, Chinese carriers' total capital investment in year 2008 will continue to increase over that of 2007.

Gross profit and gross margin

Gross profit decreased by 15.1% to US $3.9 million from US $4.6 million in Q3 2007. Our gross profit decrease during the reporting period is attributable to the same factors as the decrease in revenue. Gross margin for Q3 2008 was 46.9% compared to 50.0% in the third quarter of 2007.

Net income

Net income for the third quarter decreased to US $1.1 million compared to last year, from US $1.9 million in the third quarter of 2007. The net income decrease is mainly due to the decrease in revenue and increased interest expenses. The interest expenses went up with the increasing loan. The loan was borrowed in the late September of 2007. Therefore, the interest expense is much more in the third quarter of 2008 than that of the same period 2007.

    Recent Operational Highlights:

    -- On September 12, 2008, Telestone announced that it had launched a
       new generation wireless distribution system WFDS-TM, which is the
       Customer Premises Network and able to support all of the telecom
       networks. With the development of our WFDS-TM technology, we
       believe that WFDS-TM will be largely used in the wireless public
       mobile network establishment and it will play a very important
       role in the establishment of wireless network access, which will
       bring huge benefits to Telestone.

    -- On September 26, 2008, Telestone got good news from its branches
       in Shanxi and Inner Mongolia that they won bids of indoor coverage
       system in China Unicom Shanxi Branch and indoor distribution
       system integration program in China Telecom Inner Mongolia Branch
       separately. Winning this bid not only can evident of Telestone's
       leading position in indoor distribution system integration program,
       but also will help a lot for Telestone to win during the second
       and third periods of this program.

    -- On September 26, 2008, Telestone announced its winning bids
       results from Vietnamese and Indonesian Operators.  These winning
       bids enhance the collaboration between Telestone and International
       operators, which will help Telestone to get more profits in these
       markets.

Business Outlook

As we mentioned in early July, despite the anticipation of Telestone's domestic business being impacted by the Beijing Olympic Games to be held in August, in light of the Restructuring currently under way and the promotion plan for Telestone's new products, the Company believes that its 2008 full year revenues and net income will grow by at least 20% compared with that of 2007. With the Restructuring expected to be completed in 2009, Chinese telecom operators are expected to increase their capital expenditures in indoor coverage networks and the Company therefore anticipates 2009 revenue increasing around 100% from that of 2008.

Conference Call

The Company's management team will conduct a conference call on November 14, 2008 at 5:00 am (Pacific)/8:00 am (Eastern)/9:00 pm (Beijing/Hong Kong).

     U.S. Participants:           +1-800-860-2442
     International Participants:  +1-412-858-4600
     Passcode for all:            Telestone

A live audio webcast of the conference call will also be available through our new corporate website, please visit: http://www.visualwebcaster.com/event... .

The audio replay of the conference call will be available for one year following the announcement at the above link.

    A replay will be available after the end of the call until November 21st.
    All participants please dial:

     U.S. Participants:           +1-877-344-7529 (toll free)
     International Participants:  +1-412-317-0088
     Passcode:                    425249

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 800 employees. For more information please visit http://www.telestone.com .

Safe Harbor Statement 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 .

                      Telestone Technologies Corporation

Condensed Consolidated Statements of Operations and Other Comprehensive Income

              For the 9 months ended September 30, 2008 and 2007
        (Dollars in thousands except share data and per share amounts)


                                        (Unaudited)          (Unaudited)
                                    Three months ended    Nine months ended
                                       September 30,         September 30,
                                      2008       2007       2008       2007
                                    US$'000    US$'000    US$'000    US$'000
       Operating revenues
    Sales of equipments               5,797      7,344     12,112     15,055
    Service income                    2,610      1,956      8,832      5,898

    Total operating revenues          8,407      9,300     20,944     20,953

       Cost of operating
        revenues
    Cost of net sales                (3,586)    (3,928)    (7,116)    (8,082)
    Cost of service                    (879)      (727)    (3,281)    (2,088)

    Total cost of operating
     revenues                        (4,465)    (4,655)   (10,397)   (10,170)

       Gross income                   3,942      4,645     10,547     10,783

       Operating expenses
    Sales and marketing               1,430      1,462      4,028      3,447
    General and administrative          571        713      1,824      1,893
    Research and development            208        165        461        662
    Depreciation and
     amortization                        76         61        237        217

    Total operating expenses          2,285      2,401      6,550      6,219

    Operating income                  1,657      2,244      3,997      4,564
    Interest expense                   (112)       (12)      (255)       (64)
    Other (expenses) income,
     net                                (28)         5        915         17

    Income before income taxes        1,517      2,237      4,657      4,517
    Income taxes                       (395)      (369)      (917)      (800)

    Net income                        1,122      1,868      3,740      3,717

    Other comprehensive
     income
    Foreign currency
     translation adjustment              26         34      1,515         63

    Comprehensive income              1,148      1,902      5,255      3,780

    Earnings per share:

    Weighted average number of
     Common stock outstanding
    Basic                        10,404,550  9,604,550 10,404,550  9,479,489
    Dilutive effect of
     warrants                        19,860    108,506     58,712    102,735

    Diluted                      10,424,410  9,713,056 10,463,262  9,582,224

    Net income per share of
    common stock
    Basic and diluted (US$)            0.11       0.19       0.36       0.39



                      Telestone Technologies Corporation

                    Condensed Consolidated Balance Sheets
                As of September 30, 2008 and December 31, 2007
        (Dollars in thousands except share data and per share amounts)

                                                      (Unaudited)
                                                         As of       As of
                                                    September 30, December 31,
                                                          2008         2007
    ASSETS                                              US$'000      US$'000

    Current assets:
    Cash and cash equivalents                             6,327        5,473
    Accounts receivable, net of allowance                54,870       45,013
    Due from related parties                              1,818        1,792
    Inventories                                           7,519        8,023
    Prepayment                                            1,544        1,169
    Other current assets                                  2,127        1,332

    Total current assets                                 74,205       62,802

    Goodwill                                              3,119        3,119
    Property, plant and equipment, net
    Property, plant and equipment, net                    1,006        1,170

                                                          4,125        4,289

    Total assets                                         78,330       67,091

    LIABILITIES AND STOCKHOLDERS' EQUITY

    Current liabilities:
    Current portion of long term loan from
     related parties                                         32           28
    Short-term bank loans                                 2,856        2,051
    Accounts payable - Trade                              9,612        7,614
    Customer deposits for sales of equipment                211          262
    Due to related parties                                1,839        2,318
    Taxes payable                                         4,888        4,741
    Accrued expenses and other accrued
     liabilities                                         10,809        7,221

    Total current liabilities                            30,247       24,235

    Non-current liabilities:
        Long term loan from related parties                   2           30

                                                         30,249       24,265

    Commitments and contingencies                            --           --

    Stockholders' equity:
    Preferred stock, US$0.001 par value,
     10,000,000 shares authorized, no
     shares issued                                           --           --
    Common stock and paid-in-capital, US$0.001
     par value: Authorized - 100,000,000 shares
     as of September 30, 2008 and December 31,
     2007                                                    --           --
    Issued and outstanding - 10,404,550 shares
     as of September 30, 2008 and December 31,
     2007                                                    11           11
    Additional paid-in capital                           18,989       18,989
    Dedicated reserves                                    3,481        3,199
    Other comprehensive income                            4,532        3,017
    Retained earnings                                    21,068       17,610

    Total stockholders' equity                           48,081       42,826

    Total liabilities and stockholders' equity           78,330       67,091



                      Telestone Technologies Corporation

     Condensed Consolidated Statements of Changes in Stockholders' Equity
                  For the 9 months ended September 30, 2008
        (Dollars in thousands except share data and per share amounts)


                                    Common stock issued
                                                        Additional
                                     Number                paid-in  Dedicated
                                     of shares   Amount    capital   reserves
                                                US$'000    US$'000    US$'000

    Balance at January 1, 2007       8,935,106        9      8,475      2,619
    Issuance of stock (net of
     expenses)                       1,469,444        2     10,514         --
    Net income                              --       --         --         --
    Foreign currency translation
     adjustment                             --       --         --         --
    Transfer to dedicated reserves          --       --         --        580

    Balance at December 31, 2007    10,404,550       11     18,989      3,199
    Net income                              --       --         --         --
    Foreign currency translation
     adjustment                             --       --         --         --
    Transfer to dedicated reserves          --       --         --        282

    Balance at September 30, 2008
     (unaudited)                    10,404,550       11     18,989      3,481


    (Cont.)
                                           Other
                                   comprehensive      Retained
                                          income      earnings         Total
                                         US$'000       US$'000       US$'000

    Balance at January 1, 2007             1,015        12,152        24,270
    Issuance of stock (net of
     expenses)                                --            --        10,516
    Net income                                --         6,038         6,038
    Foreign currency translation
     adjustment                            2,002            --         2,002
    Transfer to dedicated reserves            --          (580)           --

    Balance at December 31, 2007           3,017        17,610        42,826
    Net income                                --         3,740         3,740
    Foreign currency translation
     adjustment                            1,515            --         1,515
    Transfer to dedicated reserves            --          (282)           --

    Balance at September 30, 2008
     (unaudited)                           4,532        21,068        48,081



                      Telestone Technologies Corporation

     Condensed Consolidated Statements of Changes in Stockholders' Equity
                  For the 9 months ended September 30, 2008
        (Dollars in thousands except share data and per share amounts)


                                                            (Unaudited)
                                                         Nine months ended
                                                            September 30,
                                                          2008          2007
                                                       US$'000       US$'000
    Cash flows from operating activities
    Net income                                           3,740         3,717
    Adjustments to reconcile net income to net cash
     used in operating activities:
        (Gain) Loss on disposal of property, plant
         and equipment                                     (15)            5
        Depreciation and amortization                      237           217
    Provision for doubtful accounts                        337         3,629

    Changes in assets and liabilities:
        Accounts receivable                             (8,349)      (10,341)
        Due from related parties                            55          (419)
        Inventories                                        881           (81)
        Prepayment                                        (330)         (439)
        Other current assets                              (751)           21
        Accounts payable                                 1,693        (1,571)
    Customer deposits for sales of equipment               (64)          207
    Due to related parties                                (595)          (12)
        Taxes payable                                      (66)        1,845
        Accrued expenses and other accrued
         liabilities                                     3,335        (1,481)

    Net cash generated from (used in) operating
     activities                                            108        (4,703)

    Cash flows from investing activities
    Purchase of property, plant and equipment              (32)         (246)
    Proceeds from disposal of property, plant and
     equipment                                              49            31
    Acquisition of a subsidiary, net of cash
     disbursed                                              --          (186)

    Net cash generated from (used in) investing
     activities                                             17          (401)

    Cash flows from financing activities
    Repayment of short-term bank loans                  (2,142)           --
    Proceeds from issuance of shares (net of
     expenses)                                              --         5,454
    Repayment of long-term loan from related parties       (27)          631
    Proceeds from new short-term bank loans raised       2,856            (8)

    Net cash generated from financing                      687         6,077

    Net increase in cash and cash equivalents              812           973

    Cash and cash equivalents, beginning of the
     period                                              5,473         3,380

    Effect on exchange rate changes                         42            63

    Cash and cash equivalents, end of the period         6,327         4,416

    Supplemental disclosure of cash flows information
    Interest received                                       23            21
    Interest paid                                          187            64
    Tax paid                                                54            --

    Non-cash investing activity
    Acquisition of a subsidiary                             --         5,062



    For further information contact:

     Telestone Technologies Corporation Ltd.
     Fang Cui
     Tel:   +86-10-8367-0088 x1202
     Email: cuifang@telestone.com

     Nick Li
     Secretary of the Board
     Tel:   +86-10-8367-0088 x1002
     Email: nickl@telestone.com

SOURCE Telestone Technologies Corporation Ltd.

Source: PR Newswire (November 13, 2008 - 4:45 PM EST)