Telestone Technologies Corporation Receives Notification of Deficiency from NASDAQ Due to Delay in Filing Annual Report on Form

 Telestone Technologies Corporation Receives Notification of Deficiency from
           NASDAQ Due to Delay in Filing Annual Report on Form 10-K

PR Newswire

BEIJING, April 19, 2013

BEIJING, April 19, 2013 /PRNewswire-FirstCall/ -- Telestone Technologies
Corporation (NASDAQ: TSTC) (the "Company"), a leading supplier of local access
network solutions for communications networks in China, today announced that
on April 17, 2013, the Company received a letter (the "Letter") from NASDAQ
Stock Market LLC ("NASDAQ") indicating that it was not in compliance with the
continued listing requirements under NASDAQ Listing Rule 5250(c)(1). The
Letter, which the Company expected, was issued in accordance with NASDAQ
procedures due to the Company's inability to file its annual report on Form
10-K for the year ended December 31, 2012 with the Securities and Exchange
Commission by the extended April 16, 2013 deadline.

The Company disclosed on April 16, 2013, that although the Company completed
the audit of the parent company's financial records in March 2013, the filing
of the 2012 annual report on Form 10-K has been delayed because the Company
will require additional time to obtain certain necessary financial records for
the year ended December 31, 2012 from its Sichuan Ruideng subsidiary, which
are needed to complete the audit of the Company's consolidated financial
results. The Company also stated that it is working diligently on this matter
and intends to file its annual report on Form 10-K as soon as practicable. On
April 17, the NASDAQ halted trading in Telestone's shares.

Pursuant to NASDAQ Listing Rule 5101, NASDAQ has elected to exercise its
discretionary authority to expedite the review process and has requested that
the Company, if it chooses to do so, submit a plan to regain compliance with
NASDAQ's requirements for continued listing no later than May 1, 2013.

If the Company does not submit a plan of compliance, or if the plan is not
accepted by NASDAQ, the Company may be subject to delisting procedures as set
forth in the NASDAQ Listing Rules.

The Company believes it can provide NASDAQ with a satisfactory plan by May 1,
2013, to show that it will be able to return to compliance with the Listing
Rules.

About Telestone Technologies Corporation

Telestone is a leader and innovator in wireless local-access network
technologies and solutions. The company has a global presence, with 30 sales
offices throughout China and a network of international branch offices and
sales agents. For more than 10 years, Telestone has installed radio-frequency
(RF)-based 1G and 2G systems throughout China for its leading
telecommunications companies. After intensive research on the needs of
carriers in the 3G age, Telestone developed and commercialized its proprietary
third-generation local-access network technology, Wireless Fiber-optic
Distribution System (WFDS), which provides a scalable, multi-access local
access network solution for China's three cellular protocols. Telestone also
offers services including project design, manufacturing, installation,
maintenance and after-sales support. The Company has approximately 1,400
employees.

Safe Harbor Statement

This release contains certain "forward-looking statements" relating to the
business of Telestone Technologies Corporation and its subsidiary companies.
Forward looking statements can be identified by the use of forward-looking
terminology such as "believes, expects" or similar expressions. Such forward
looking statements involve known and unknown risks and uncertainties,
including all business uncertainties relating to product development,
marketing, concentration in a single customer, raw material costs, market
acceptance, future capital requirements, competition in general and other
factors that may cause actual results to be materially different from those
described herein as anticipated, believed, estimated or expected. Certain of
these risks and uncertainties are or will be described in greater detail in
our filings with the Securities and Exchange Commission. Telestone
Technologies is under no obligation to (and expressly disclaims any such
obligation to) update or alter its forward-looking statements whether as a
result of new information, future events or otherwise. This press release
shall not constitute an offer to sell or the solicitation of an offer to buy
nor shall there be any sale of these securities in any state or jurisdiction
in which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of such state or
jurisdiction.

SOURCE Telestone Technologies Corporation

Website: http://www.telestone.com/english/index.asp
Contact: Telestone Technologies Corporation, Ms. Jun Man, Manager of the
Office of the Board of Directors, +86-10-6860-8335 x1104,
manjun-z@telestone.com
 
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