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Telestone Technologies Corporation Reports Record Third Quarter Results; Revenues Up 128%, Net Income Increases 184.0%, EPS up 178%

-- Company confident to meet 2010 guidance: Revenues of $129.4 million; $22.9 million in net income and $2.17 in EPS
-- Fiber Optic WFDS Installations Account for 23.5% of Revenues; Telestone completes 364 Commercial and Business Contracts

BEIJING, Nov. 15, 2010 /PRNewswire-Asia-FirstCall/ -- Telestone Technologies Corporation ("Telestone" or the "Company") (Nasdaq:TSTC - News), a leading developer and provider of telecommunications local access network solutions based in China, today announced its financial results for its third quarter ended September 30, 2010.

Third Quarter 2010 Highlights

* Revenue was $43.1 million, up 128.2% from 3Q2009
* Company secured approximately 23.5% of revenues from WFDS™ installations;
* Q3 2010 gross margins were 45.3%, exceeding management guidance of 42%
* Net income up 184.0% from Q3 2009; $1.14 in fully diluted EPS
* Company announced first US-based WFDS™ contract for a Houston-based hospital on August 9, 2010

"Our performance in the third quarter showed a marked acceleration in our business and is consistent with our growth expectations for the year," began Han Daqing, CEO and Chairman of Telestone. "Investments in sales and marketing earlier this year helped ensure our WFDS systems were chosen as the last mile network of choice at targeted installation sites and we have seen a dramatic pickup in our installations year long. Having secured a solid backlog of both 3/G and WFDS™ contracts and installations, we are confident in achieving our full year guidance of $129.4 million in revenues and $22.9 million in net income."