Teletouch Regains Current Reporting Status after Filing Previously Delinquent Quarterly Reports on Form 10-Q for the 2008 Fiscal Year Period; Teletouch Cautions Investors Not to Rely on These Dated Financial Presentations

FORT WORTH, Texas--(BUSINESS WIRE)--Teletouch Communications, Inc. (OTC: TLLE), a leading provider of AT&T (NYSE: T) and T-Mobile USA (NYSE: DT) cellular services, two-way radio, mobile and related consumer electronics products and services, today announced that the Company has regained currency in its public financial reporting as required by the Securities and Exchange Commission (“SEC”) with the recent filing of its previously delinquent quarterly financial reports for the first, second and third quarters of its 2008 fiscal year, such reports being filed on separate Form 10-Q’s (the “Quarterly Reports”) for the periods ended August 31, 2007, November 20, 2007 and February 29, 2008, respectively. All previous and current annual reports on Form 10-K have been filed, and the Company is both timely and current for its most recent reporting periods, beginning with the fiscal year 2009 ending May 31, 2009 Report on 10-K, and the Company’s most recent fiscal first quarter, for the period ending August 31, 2009. The Company’s 2010 fiscal second quarterly report is due on or before January 14, 2010, and is expected to be filed timely.

THE COMPANY CAUTIONS INVESTORS AND OTHER USERS OF ITS SEC FILINGS NOT TO RELY ON THE HISTORICAL FINANCIAL INFORMATION FILED WITH ITS QUARTERLY REPORTS ON FORMS 10-Q FOR THE PERIODS ENDED AUGUST 31, 2007, NOVEMBER 30, 2007 AND FEBRUARY 29, 2008. AS A RESULT OF THE HISTORICAL NATURE OF SUCH FINANCIAL PRESENTATIONS, SUCH REPORTS DO NOT REPRESENT THE CURRENT STATE OF THE COMPANY’S BUSINESS, OPERATIONS AND FINANCIAL CONDITION. FOR MORE INFORMATION, PLEASE REVIEW THE COMPANY’S CURRENT FISCAL YEAR REPORTS.

The Company previously filed its audited consolidated results for its fiscal year ended May 31, 2008 in its Annual Report on Form 10-K which on January 16, 2009. The prior filed fiscal year 2008 Annual Report included the combined operating results being reported on these Quarterly Reports. The financial information included in these Quarterly Reports include the results of Teletouch’s wholly owned subsidiary, Progressive Concepts, Inc. (“PCI”), for each of these periods. As previously announced, the Company encountered substantial unanticipated delays and difficulties in completing the audits of PCI and the related historical restatements to effect the combination of PCI with Teletouch, following its acquisition of PCI in August 2006, which, in turn, prevented it from filing these Quarterly Reports within the statutorily prescribed timeframe.

The filing of these previously delinquent Quarterly Reports on Form 10-Q brings the Company into compliance with the reporting requirements as determined by the SEC. As previously announced, the Company received requested relief on certain of its delinquent prior period Quarterly Reports whereby the Company would be required to file its delinquent fiscal 2008 Quarterly Reports, but would not be required to file its delinquent fiscal 2007 Quarterly Reports. In granting the Company relief from filing its 2007 Quarterly Reports, the SEC staff reminded Teletouch that its acceptance of the fiscal 2008 Quarterly Reports as sufficient to bring Teletouch up to date with its filings (“currency” in this regard), would not mean such filings would be deemed as "timely" for the purposes of certain corporate events, including availability of Form S-3 and Form S-8 registrations. The Company’s timely filing of its most recent fiscal 2009 Annual Report on Form 10-K began a period of “timely filing” for determining the Company's future eligibility for these registrations. In addition, the SEC indicated that it would advise further consultation with the staff regarding when Teletouch would be deemed up-to-date in its filings, for the purposes of the availability of Rule 144 resale of restricted securities.

About Teletouch Communications

For over 40 years, Teletouch has offered a comprehensive suite of telecommunications products and services under the Teletouch™, AT&T® and T-Mobile® brands, including cellular, two-way radio, GPS-telemetry, wireless messaging and public safety/emergency response products and services. Teletouch operates a chain of retail stores and direct sales force under the “Teletouch” brand, including service offerings for T-Mobile; its own two-way radio network; and, related emergency vehicle products and services business as Teletouch EVP at www.teletouchevp.com. Teletouch’s wholly owned subsidiary, Progressive Concepts, Inc. (PCI), is a leading provider of AT&T Mobility (voice, data and entertainment) to consumers, businesses and government agencies. For over 35 years, PCI has also offered consumer electronics products and services through its own chain of retail stores under the “Hawk Electronics” brand; as well as through its own network of Hawk-branded sub-agents, direct sales force and on the Internet at various sites including: www.hawkelectronics.com and www.hawkexpress.com. In addition, PCI operates a national wholesale distribution business, PCI Wholesale, which serves major carrier agents, smaller retailers and rural cellular carriers, as well as automotive retailers and auto dealers throughout the country, with ongoing product and sales support through www.pciwholesale.com and www.pcidropship.com, among other sites.

Teletouch's common stock is traded Over-The-Counter under stock symbol: TLLE. Additional information about the Teletouch family of companies can be found at www.teletouch.com.

All statements from Teletouch Communications, Inc. in this news release that are not based on historical fact are "forward-looking statements" within the meaning of the PSLRA of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. While the Company’s management has based any forward-looking statements contained herein on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties, and other factors, many of which are outside of our control, that could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not necessarily limited to, those set forth under the caption “Risk Factors” in the Company’s most recent Form 10-K and 10-Q filings, and amendments thereto, as well as other public filings with the SEC since such date. The Company operates in a rapidly changing and competitive environment, and new risks may arise. Accordingly, investors should not place any reliance on forward-looking statements as a prediction of actual results. The Company disclaims any intention to, and undertakes no obligation to, update or revise any forward-looking statement.