Teletouch Announces National Distribution Agreement with TCT Mobile for Sales of ALCATEL ONE TOUCH Branded Cellular Handsets

Named Distributor for Tier-1 Wireless Carriers’ Indirect Channel

FORT WORTH, Texas--(BUSINESS WIRE)--Teletouch Communications, Inc. (OTCBB: TLLE), a leading U.S. wireless services, cellular, consumer electronics and public safety equipment distributor, today announced that it has entered into a multi-year national supply and distribution agreement with TCT Mobile Multinational, Limited, a subsidiary of publicly traded consumer electronics manufacturer, TCL Communication (HKSE: 2618), a global leader in consumer electronics manufacturing and distribution, to sell and distribute their ALCATEL ONE TOUCH branded mobile phones. TCT Mobile is one of the largest and fastest growing handset manufacturers in the world. Teletouch has been named as a distributor in the United States for all Tier-1 wireless carriers’ indirect distribution channels, including agents, dealers, independent retailers, MVNEs, resellers, distributors and/or similar wireless businesses (but not including any tier-1 carrier-owned retail outlets or affiliated distributors), and any Tier-2 or Tier-3 wireless carrier or operators (i.e., all other wireless carriers in the United States), as well as for certain exclusive customer accounts, including a number of national retailers.

“The completion of this initial agreement with a leading global cellular handset manufacturer is a key milestone in Teletouch’s stated effort to transform our core business from primarily providing AT&T (NYSE: T)–based cellular billing services on a limited regional basis to becoming a prominent national wholesale wireless equipment distribution company. The ALCATEL ONE TOUCH family of wireless products is quickly emerging as a leading choice for U.S. agents and operators looking for high quality, stylish cellular handsets and smartphones at competitive price points,” said T. A. “Kip” Hyde, Jr., President and COO of Teletouch. “These innovative Android® OS-based products, designed in Europe, provide easy-to-use, colorful and accessible alternatives to users at every level. We have high expectations for strong multi-million dollar sales growth over the next twelve months, as we roll-out this exceptional product line through our PCI Wholesale subsidiary to our distribution base across the country.”

Rayford Higginbotham, TCT Mobile Executive Director for North America, stated, “Given Teletouch’s long history in both retail and wholesale cellular handset sales and distribution, we think they are a perfect choice for us to penetrate the major carrier agent, dealer and MVNE communities throughout the United States. We are pleased to work with this results driven, high impact, hands-on telecom services provider to support our smaller retail and carrier customers.”

Rayford added, “TCT Mobile has seen continued overall growth in 2011, marking our 6th consecutive year of growth, with impressive results in all regions. To further enhance our competitive advantages, we will continue to expand our product line-up to include more diversity and strengthen our Android smartphone line-up. The smartphone range will include a variety of options from entry-level Android devices to powerful Android smartphones with extended capabilities. We believe that Teletouch will certainly assist us in continuing our strong growth in the United States.”

About ALCATEL ONE TOUCH

ALCATEL ONE TOUCH designs, develops, and markets globally a growing range of mobile and internet products designed to be as individual as the people who use them. Currently the fastest growing of the world’s top ten mobile phone manufacturers, TCT Mobile makes access to today’s mobile lifestyle simple by offering colorful, easy-to-use devices equipped with the technology people need most at prices they can afford. ALCATEL ONE TOUCH is a brand of TCL Communication, a public company listed on the Hong Kong Stock Exchange (2618.HK) and part of TCL Corporation, one of the largest consumer electronics companies in the world. For more information, please visit www.alcatelonetouch.com.

About Teletouch Communications

For over 47 years, Teletouch has offered a comprehensive suite of wireless telecommunications solutions, including cellular, two-way radio, GPS-telemetry and wireless messaging. Teletouch is a leading Authorized Services Provider and billing agent of AT&T (NYSE: T) products and services to consumers, businesses and government agencies, as well as an operator of its own two-way radio network and LTR systems in Texas. Teletouch operates a chain of 19 retail and authorized agent stores under the “Teletouch” and “Hawk Electronics” brands, in conjunction with its direct sales force, call center operations and various retail eCommerce websites including: www.hawkelectronics.com, www.hawkwireless.com and www.hawkexpress.com. Through its wholly owned subsidiary, Progressive Concepts, Inc., Teletouch operates a national distribution business, PCI Wholesale, primarily serving Tier-1 (AT&T, T-Mobile, Verizon, Sprint) cellular carrier agents, Tier-2, Tier-3 and rural carriers, as well as auto dealers and smaller consumer electronics retailers, with product sales and support available through www.pciwholesale.com and www.pcidropship.com, among other B2B oriented websites.

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.

ALCATEL ONE TOUCH, Android, and the registered trademarks of each, any and all product or service names discussed in relation to Teletouch Communications, Inc. and its affiliates are the property of their respective owners.

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.

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