LGC Wireless and Telestone Technologies Sign OEM Agreement in Mainland China

Deal Makes LGC Products Leading In-Building Solutions for Top Supplier to China's Largest Wireless Carriers

SAN JOSE, CA, September 18, 2006—LGC Wireless, the leader in advanced in-building wireless systems, today announced that it has signed an OEM agreement to supply its in-building wireless systems to Telestone Technologies Corporation (AMEX:TST), one of the principal suppliers to China Mobile and China Unicom, which are the two largest wireless telephone companies in mainland China. The agreement follows an aggressive trial program conducted in 24 provinces in mainland China, followed by significant purchase commitments by Telestone with an initial purchase of LGC equipment valued at $1.6 million. Under the agreement, Telestone will become LGC Wireless' only PRC-based reseller in the People's Republic of China.

China is the world's largest cellular services market with more than 500 million users projected by 2007, according to Nokia China. While growth in 2G wireless systems continues, China will soon be aggressively deploying 3G wireless solutions that are expected to further accelerate subscription rates.

"When 3G networks begin construction in the PRC, we plan to offer our customers the most advanced in-building cellular systems in China," said Han Daqing, CEO of Telestone Technologies Corporation. "In our testing, LGC Wireless products delivered superior signal quality and performance, and will allow our customers to rapidly and cost-effectively upgrade their 2G networks to 3G. LGC's products are one of the key parts in our technology solutions, which I believe will greatly increase Telestone's market share once 3G is deployed."

With high, uniform coverage at every antenna point, LGC's InterReach Unison and Fusion products offer best-in-class coverage, while their dual-star active architecture delivers end-to-end management and cost-effective scalability to support advanced wireless services in facilities of any size.

"Telestone has very strong relationships as a supplier to China's largest wireless carriers," said Ian Sugarbroad, CEO of LGC Wireless. "We believe this agreement will add significantly to our presence in Asia and will enable the vital indoor cellular coverage that Chinese customers will demand for their 2G and 3G services."

About Telestone Technologies Corporation

Telestone provides wireless communications coverage solutions primarily in the People's Republic of China. These solutions include products such as repeaters, antennas and radio accessories. In addition, the Company provides services that include project design, project management, installation, maintenance and other after-sales services. Telestone Technologies currently has approximately 414 employees. Additional information on the Company can be found at www.telestonecorp.com.

About LGC Wireless

With more than 5,500 deployments worldwide, LGC Wireless is the leader in extending scalable, high-performance wireless coverage inside buildings and public facilities. LGC's products offer low-cost installation, end-to-end monitoring and management, and easy integration of emerging wireless technologies. LGC Wireless is based in San Jose, California USA and is privately held. For more information, please visit www.lgcwireless.com.