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Teletouch Files Its Annual Report on Form 10-K for the 2007 Fiscal Year Period Ended May 31, 2007; Teletouch Cautions Investors

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^{Published in Science and Technology on Wednesday, November 26th 2008 at 8:22 GMT by Market Wire}  

FORT WORTH, Texas--([ BUSINESS WIRE ])--Teletouch Communications, Inc. (OTC: TLLE), a leading U.S. cellular services provider and mobile electronics retailer today announced it has filed its Annual Report on Form 10-K for the year ended May 31, 2007. This Annual Report includes the audited consolidated financials of Teletouch for the years ended May 31, 2005 and May 31, 2006, restated for the effect of Teletouch's acquisition and consolidation of Progressive Concepts, Inc. ("PCI") in August 2006, which has been accounted for in a manner similar to a pooling of interests, and, the subsequent completion of the sale of Teletouch's paging business assets which have been restated as discontinued operations. Both of these transactions were originally announced by the Company in August 2006 (the "August 2006 Transactions"). The audited financials included in this Annual Report for the year ended May 31, 2007 include the results of Teletouch's wholly owned subsidiary, PCI, for that period. 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 the August 2006 Transactions, which, in turn, prevented it from filing this Annual Report within the statutorily prescribed timeframe.

THE COMPANY CAUTIONS INVESTORS AND OTHER USERS OF ITS SEC FILINGS NOT TO RELY ON THE HISTORICAL FINANCIAL INFORMATION FILED WITH ITS ANNUAL REPORT ON FORM 10-K FOR THE PERIOD ENDED MAY 31, 2007 DUE TO THE HISTORICAL NATURE OF SUCH FINANCIAL PRESENTATIONS AS THEY DO NOT REPRESENT THE CURRENT STATE OF THE COMPANY'S BUSINESS, OPERATIONS AND FINANCIAL CONDITION.

The 2007 Annual Report also discloses certain significant transactions for the Company that were finalized subsequent to May 31, 2007. Certain of these events were finalized in May 2008 and have been previously announced in the Company's Current Report on Form 8-K filed on May 27, 2008, including: the negotiated settlement of its obligation and subsequent retirement of 6,000,000 outstanding redeemable common stock warrants; establishing a new $5,000,000 credit facility with Thermo Credit, LLC, increasing its overall credit facilities to $20,000,000, and, the full and complete release from any potential or contingent liability under PCI's prior senior debt obligations to Fortress Credit Corp ("Fortress" NYSE: FIG) through the termination of a Transaction Party Agreement by and among Teletouch, PCI and Fortress. In addition, the Company entered into a settlement agreement with AT&T Wireless, PCI's primary cellular network contractor, in June 2007 to resolve a dispute over certain charges that had been previously billed to the Company. As a result of this settlement, the Company recorded a gain of approximately $3.8 million in June 2007.

The Company and its independent auditors continue to work diligently to complete and file all of the Company's remaining outstanding audited financial statements which are required to be filed as of the date hereof, and investors should expect the next filing to be the audited results of the full fiscal year 2008, ending May 31, 2008 on Form 10-K. The Company anticipates this filing to take place as soon as possible, as a significant amount of the audit work for fiscal 2008 has been completed as of the date of this announcement. The Company will not be current with its financial reporting requirements until it has completed the required Quarterly Reports on Form 10-Q for all periods following the acquisition of PCI. The Company expects that the Quarterly Reports can be completed more efficiently upon the completion of the Annual Reports for fiscal 2008. The Company expects to ask the Securities and Exchange Commission for relief on some of its delinquent Quarterly Reports on Form 10-Q due to the limited value of the dated quarterly information and the inclusion of summary quarterly information in its Annual Reports. The Company can give no assurance that this relief will be granted.

T. A. "Kip" Hyde, Jr., Teletouch President and Chief Operating Officer, stated, "The filing of this report marks an important milestone in allowing the Company to become current in its filings, and eventually regain its listing on a major exchange. With the significant accounting issues resolved, we expect to file our more current financial reports in the relatively near future. The Company will keep our investors and the market informed of its progress through this process."

About Teletouch Communications

For more than 40 years, Teletouch has offered a comprehensive suite of telecommunications products and services including cellular, two-way radio, GPS-telemetry, wireless messaging and public safety/emergency response vehicle products and services throughout the U.S. Teletouch's wholly-owned subsidiary, Progressive Concepts, Inc. (PCI), is a leading provider of AT&T Mobility® services (voice, data, entertainment), as well as other mobile, portable and personal electronics products and services to individuals, businesses and government agencies. PCI operates a chain of retail stores and sells under the "Hawk Electronics" brand; through Hawk-branded sub-agents; its own direct sales force and through the Internet at various sites including: [ www.hawkelectronics.com ], [ www.hawkexpress.com ], among others. PCI also operates a national wholesale distribution business, known as PCI Wholesale, which serves smaller cellular and automotive retailers, car dealers and rural cellular carriers throughout the country; Dealers and Retailers see [ www.pciwholesale.com ]. Additional information on Teletouch's Emergency Vehicle Products group can be found at [ www.teletouchevp.com ]. Teletouch's common stock is traded Over-The-Counter under stock symbol: TLLE. Additional information about Teletouch 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.