Telestone Technologies Corporation Ltd. Enters into Agreement to Acquire Shandong Guolian Communication Technology Co., Ltd.

Telestone Technologies Corporation Ltd. Enters into Agreement to Acquire Shandong Guolian Communication Technology Co., Ltd.

July 10, 2007

    BEIJING, July 9 /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
that, through its variable interest entity, Beijing
Telestone Wireless Telecommunication Company Ltd., the
Company has entered into a Stock Transfer Agreement to
acquire 100 percent of the equity in Shandong Guolian
Communication Technology Co. Ltd. ("Guolian"). 

    According to the agreement, on the closing date,
Guolian will receive 800,000 shares of restricted common
stock of Telestone and $500,000 in cash. One year following
the agreement, Guolian is also eligible to receive an
additional 100,000 shares of restricted common stock in
Telestone subject to it meeting certain performance
thresholds.  

    Guolian is a leading provider of wireless coverage
integration services for carriers in Shandong Province,
China. Guolian has strong ties with various wireless
communications operators in Shandong Province and maintains
a leading market share amongst wireless coverage integration
solutions within the region. 

    "We are delighted to have reached this agreement
with Telestone. As one of China's leading providers of
wireless coverage solutions, we will benefit greatly from
their technological leadership and the depth of the
products and services that they offer. We look forward to
passing on these benefits to our existing customer base and
strengthening our position as a leading wireless coverage
service provider in Shandong Province," commented Mr.
Lian Renguang, General Manager of Guolian.  

    Mr. Han Daqing, CEO of Telestone, said: "Our
acquisition of Guolian will give us greater access to the
Shandong market through Guolian's strong customer
relationships. Telestone will continue to seek to grow its
market share in China through both organic expansion and
acquisitions that we believe will be value enhancing to our
shareholders."  

    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 556 employees. Additional information on the
Company can be found at http://www.telestonecorp.com .

    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 additional information please contact:

     Todd Li, Board of Directors Officer
     Telestone Technologies Corp.
     Tel:   [phone] x1201
     Email: [e-mail]

     Sissi Wang, Board of Directors Officer
     Telestone Technologies Corp.
     Tel:   [phone] x1203
     Email: [e-mail]