Teletouch Announces Investment in Mobui Corporation

FORT WORTH, Texas--([ BUSINESS WIRE ])--[ Teletouch Communications, Inc. ] (OTC: TLLE), a leading U.S. cellular services provider and consumer electronics retailer, announced today that it has acquired an equity stake in privately held, Redmond, WA-based [ Mobui Corporation ], a mobile application development agency and hosted applications provider. The terms of the transaction were not disclosed. Mobui plans to use the funds to expand the company's software development and customer operations functions. Teletouch gains access to a large and growing Mobui catalogue of mobile applications being built to run on the Apple, Inc. (Nasdaq: AAPL) iPhone, Research In Motion Ltd. (Nasdaq: RIMM) Blackberry devices, the new Google, Inc. (Nasdaq: GOOG) Android G1 exclusively distributed by T-Mobile (NYSE: DT), and hundreds of other handset types from virtually all leading manufacturers. As part of the transaction, Teletouch President and Chief Operating Officer, T. A. "Kip" Hyde, Jr., will be joining Mobui's board of directors, effective immediately.

Mobui speeds time to market for the delivery of mobile applications for leading consumer, media, and mobile industry brands, through a proprietary development process they've termed "The Speed of Wow!™." Current Mobui clients include Viacom (NYSE: VIA), TiVo Inc. (Nasdaq: TIVO) and other mass media, telecom and related technology companies in the U.S. and South America. The Mobui team has created, delivered and currently hosts mobile applications for brands including VH1, The Wall Street Journal, MSNBC.com, Sports Illustrated, Barrons.com, Golf.com, and MarketWatch, among others. The company has experience developing applications for a wide variety of mobile devices, including the iPhone, Android, Blackberry, RIM, Windows Mobile, and Java powered devices.

"Mobui brings Teletouch access a wide range of mobile applications and mobile handset development capabilities that open new sales and distribution channel opportunities for Teletouch," said Hyde, "We can now offer more brand name mobile content and enterprise applications to our current 80,000 wireless subscribers. We will also have the opportunity to add more broad based consumer sales through the Company's [ HawkElectronics.com ] web portal, as well as offer mobile enterprise applications to large corporate, government and telecom industry players, both domestically and abroad. In short, we believe that our investment in Mobui will provide entirely new worlds of revenue creation for Teletouch."

John Burry, CEO of Mobui said, "From the [ VH1 Watch and Discuss Live Chat application ] to the [ TiVo Mobile Web site ], we are committed to delivering ‘beautiful' mobile applications in unprecedented timeframes for our leading brand name clients. With over 200 million downloads in 2008, the market for mobile applications is clearly accelerating. This investment from Teletouch provides us with additional operational flexibility to remain 100% focused on meeting and exceeding our customers' expectations of speed and quality. We are proud to have investors that prioritize their customers first, and we are pleased that Teletouch has expressed such confidence in our future."

Hyde concluded, "In fact, as we look to the future, Mobui's mobile application development and hosting capabilities will allow us to port over services and applications between GSM carriers, directly on handsets and over-the-air. This is a real convenience and cost savings for customers looking to change carriers. As the carriers ‘walled-gardens' continue to fall, having such advanced development and delivery capabilities will become more and more meaningful."

About Mobui Corporation

Mobui is a leading mobile application development agency that creates beautiful mobile experiences for today's leading consumer, media, and mobile industry brands – fast. Founded by Pacific Northwest mobile industry veterans, Mobui speeds time-to-market by rapidly producing premium mobile websites and high-end mobile phone applications using their accelerated ‘speed of wow' development lifecycle and patented application development technology. Privately held and headquartered in Redmond, WA, Mobui is working with top brands, such as TiVo and VH1, to deliver mobile brand experiences that soar beyond the ordinary to reset expectations for how mobile consumers experience content and services on their mobile phone. Additional information is available at +1 (888) 893-8953, [ wowme@mobui.com ], and [ http://www.mobui.com ].

About Teletouch Communications

For over 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. With the addition of Teletouch's wholly-owned subsidiary, Progressive Concepts, Inc. (PCI), the Company is now a leading provider of AT&T Mobility® services (voice, data, entertainment), as well as other consumer electronics products and services to individuals, businesses and government agencies. PCI operates a chain of retail stores under the "Hawk Electronics" brand; through PCI-authorized Hawk-branded sub-agents; through its own direct sales force, and through the Internet at various sites including: [ www.hawkelectronics.com ] and [ www.hawkexpress.com ], among others. The Company also operates a national wholesale distribution business, PCI Wholesale, which serves smaller retailers across the country; Dealers and Retailers see [ www.pciwholesale.com ]. Emergency vehicle products 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 [ http://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.

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Teletouch Announces Investment in Mobui Corporation