The U.S. Federal Communications Commission Approved WFDS(TM) Technology Developed by Telestone Technologies Corporation

BEIJING, Oct. 20 /PRNewswire-Asia-FirstCall/ -- Telestone Technologies Corporation (Nasdaq: TSTC; "Telestone" or the "Company") a leading developer and provider of local access network solutions based in China, announced today that its Wireless Fiber Distribution System (WFDS(TM)) passed all testing procedures of the U.S. Federal Communications Commission ("FCC"), including all of the existing 2G and 3G systems in the U.S.

The WFDS(TM) system had a successful debut at the April 2009 CTIA trade show in Las Vegas. After the trade show, Telestone assembled a special team for the sole purpose of completing the FCC certification process for the system's equipment. This team consisted of corporate-level officers, R&D and marketing personnel, along with a partner in the United States. In September 2009, Telestone's proprietary WFDS(TM) technology, which provides for indoor multi-services access networks, successfully passed all FCC testing procedures. The FCC certification letter will not only apply to the U.S. market, but also to Telestone's WFDS(TM) products in Central and South America. Leveraging successful installations for this new fiber-optic equipment in China, this approval is a significant milestone in the Company's efforts to gain market share in the North and South American markets.

Mr. Daqing Han, Chairman and CEO of Telestone, commented, "The certification of Telestone's WFDS(TM) technology by the FCC has removed the final hurdle for us to effectively launch our marketing initiatives throughout the Americas. In the coming months, we expect to secure new contracts in the U.S. from telecommunication carriers and through our local partners while expanding our reach to countries in Latin America. Diversifying our revenue base as we move into 2010 is an important goal and we expect positive margin enhancements through increased WFDS(TM) sales."

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.

SOURCE Telestone Technologies Corporation