Teletouch Files PCI's 2006 Historical Audited Financial Statements & Pro Forma 2006 Consolidated Reports; Teletouch Cautions Investors Not to Rely on

FORT WORTH, Texas--(BUSINESS WIRE)--Teletouch Communications, Inc. (Pink Sheets: TLLE), a leading U.S. cellular, mobile electronics and related wireless services provider today announced it has filed Amendment No. 1 to its Current Report on Form 8-K dated August 17, 2006 relating to its debt restructuring, acquisition and consolidation of Progressive Concepts, Inc. (“PCI”) and completion of the sale of its paging business assets originally announced in August 2006 (the “August 2006 Transactions”). This 8-K Amendment contains the historical audited financial statements of PCI, now a wholly-owned subsidiary of the Company, for the calendar years ended December 31, 2003, 2004 and 2005, respectively, and the unaudited financial statements of PCI for the five months ended May 31, 2005 and 2006, respectively. The filing also contains certain consolidated pro forma financial information in connection with the August 2006 Transactions. The Company encountered substantial unanticipated delays and difficulties in completing such presentations following the August 2006 Transactions, which, in turn, prevented it from filing 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 THIS AMENDMENT NO. 1 TO ITS AUGUST 17, 2006 CURRENT REPORT ON FORM 8-K DUE TO THE HISTORICAL NATURE OF SUCH FINANCIAL PRESENTATIONS AND THAT THEY DO NOT REPRESENT THE CURRENT STATE OF THE COMPANY’S BUSINESS, OPERATIONS AND FINANCIAL CONDITION.

The Company and its independent auditors are working diligently to complete and file all of the Company’s outstanding audited financial statements which are required to be filed as of the dates hereof, and investors should expect the next filings, in order, to be the audited results for the full fiscal years 2007 and 2008, ending May 31, 2007 and May 31, 2008 respectively. The Company anticipates such filings to take place as soon as possible.

Teletouch President and Chief Operating Officer, T. A. “Kip” Hyde, Jr. stated, “We continue to make progress with our auditors in completing the audits of our prior year periods. The completion of the base year audits of PCI as disclosed in the 8-K/A now allows Teletouch to recast its financial statements for the periods prior and subsequent to the acquisition, as consolidated with PCI. This critical element moves us closer to completing the audits of all of the financial statements required to be included in the Company’s filing of its Annual Report on Form 10-K for the fiscal year ended May 31, 2007, and upcoming 2008 fiscal year end. We will continue to keep 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 cellular 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: http://www.hawkelectronics.com, www.hawkexpress.com, among others. PCI also operates a national wholesale distribution business, known as PCI Marketing that serves smaller cellular and automotive retailers, car dealers and rural cellular carriers throughout the country; Dealers and Retailers see www.pcimktg.com. More information on Teletouch’s Emergency Vehicle Products group can be found at http://www.teletouchevp.com. Teletouch's common stock is traded Over-The-Counter on the Pink Sheets electronic exchange under stock symbol: TLLE. Additional information about Teletouch can be found at http://www.teletouch.com.

All statements 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 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, including, without limitation, the Company’s expectations and estimates as to the timing of the completion of the audit work for the financial periods in questions, 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.

Teletouch Communications, Inc.
Amy Gossett, 800-232-3888
Investor Relations
investors@teletouch.com