Teletouch Settles With AT&T

FORT WORTH, Texas -- Teletouch Communications, Inc. (OTCBB: TLLE), a leading U.S. wireless services, cellular, consumer electronics and public safety equipment provider today announced that it has reached a comprehensive, multi-part settlement in the ongoing litigation between its wholly-owned subsidiary, Progressive Concepts, Inc. dba Hawk Electronics ("PCI") and AT&T (NYSE: T).

Aside from the information contained in this press release and in the related Current Report on Form 8-K filed with the SEC, available on EDGAR and at the Company's corporate website, further details of the settlement shall remain confidential.

"We are very pleased that a mutually satisfactory resolution and full settlement of the litigation matters was able to be achieved, eliminating further uncertainty and establishing a renewed, positive distribution and sales relationship with AT&T," stated T. A. "Kip" Hyde, Jr., President, Chief Operating Officer and Director of Teletouch. "The comprehensive settlement and new distribution and dealer agreements will allow PCI to once again be a strong regional distribution channel for AT&T."

Teletouch Communications Inc.