Key financial metrics and related events of 2009 include:

Through continued margin growth and expense management, the Company is reporting a net loss of $1.9 million for fiscal year 2009, a greater than $5.0 million improvement over the prior year results, after excluding the approximately $3.8 million one-time non-cash gain from the Company's June 2007 settlement with AT&T, shown in the fiscal year 2008 results.

Operating income in 2009 was a positive $0.7 million, a $1.5 million improvement from an operating loss of approximately $0.8 million in fiscal year 2008, after excluding the approximately $3.8 million one-time non-cash gain on its settlement with AT&T from the fiscal year 2008 results.

Total selling, general and administrative expenses for 2009 were reduced by $3.0 million or 15% from the prior year period, most notably due to a reduction in salaries and other personnel expenses of $1.7 million, and changes in advertising expenditures from traditional mass media (print, radio, TV) vehicles to affinity group and sports marketing relationships, which realized an additional greater than $0.5 million savings.

Cash flows from operations improved approximately $10.5 million in 2009, with cash provided from operations of $4.2 million in 2009 as compared to cash used in operations of approximately $6.2 million in 2008. Note: For comparative purposes, during 2008, the Company paid $4.7 million in accounts payable due to AT&T as part of a settlement reached in June 2007, and paid $2.0 million to PCI's prior senior lender to have all remaining obligations of the Company under that debt facility terminated. Even excluding these two significant cash uses in 2008, the Company still improved cash flows during 2009 by $3.8 million through improved margins and continued management of its operating assets and liabilities.

Adjusted EBITDA, excluding stock-based compensation expense and certain extraordinary litigation costs, was $2.7 million, an improvement of $3.9 million compared to 2008, after excluding the approximately $3.8 million one-time non-cash gain from its settlement with AT&T in the 2008 results. The improvement in adjusted EBITDA was primarily due to lower operating expenses. A reconciliation of GAAP to non-GAAP results have been provided in the financial statement tables included in this press release.

Reported for fiscal 2009, and effective August 1st, the Company amended the terms of its previous $5.25 million revolving credit facility, while simultaneously retiring its prior receivables factoring agreement, and consolidated both facilities with its senior lender, Thermo Credit, LLC, resulting in, among other changes, the availability under the revolving credit facility being increased from $5.25 million to $18 million and the maturity of the revolver being extended from April 30, 2010 to January 31, 2012 (See Note 8 & 16 -- Subsequent Events in the Form 10-K for more details).

In addition to stronger fundamentals, the Company achieved a number of other significant milestones:

Opened Teletouch-branded retail locations under a new Exclusive Retailer Agreement with T-Mobile USA, Inc. (NYSE: DT), the Company's first new carrier relationship in several years. T-Mobile is the second largest GSM-network-based U.S. wireless carrier, and a division of Deutsche Telekom AG, the third largest wireless carrier provider in the world.

Completed its acquisition of a minority percentage of Redmond, WA-based Mobui, Inc. ("Mobui"), an advanced mobile applications development and content delivery company with a growing catalogue of proprietary mobile applications, content and delivery platforms, including those for Apple Inc.'s (NASDAQ: AAPL) iPhone, Research in Motion Ltd's (NASDAQ: RIMM) Blackberry devices and the new Google Inc. (NASDAQ: GOOG), Android G1. After providing start-up debt financing through May 31, 2009, substantially all of the principal previously loaned to Mobui has been repaid to the Company.

Remediated all previously identified and reported material weaknesses in the Company's internal control over financial reporting from the previous fiscal 2008 year, concluding that our internal controls and procedures were effective as of May 31, 2009. Fiscal 2009 was the Company's second year of providing a report of internal controls over financial reporting pursuant to Section 404 of the Sarbanes-Oxley Act of 2002.

The Going Concern explanatory language was removed from the 2009 audit opinion issued by the Company's Independent Registered Public Accounting Firm, BDO Seidman, LLP. During 2009, the Company resolved many of its prior business and financial uncertainties, through continued improvements to the Company's operations and financial condition, and the long-term renewal of its primary financing facility.

"After focusing this year primarily on stabilizing our businesses, improving profitability, completing the 2009 fiscal year financial audit in a timely manner and remediating our 404-compliance issues, we are now in a much stronger position to focus on new growth opportunities, whether organically or acquisition driven," said T. A. "Kip" Hyde, Jr., President, COO and Director of Teletouch. "In addition, we remain committed to regaining visibility in the marketplace, with growth, such that we will have the future opportunity to re-list on a major stock exchange. The steady progress we have made and will continue to make should help our eventual success in this goal."

Investors should be advised that while the Company is not current with its reporting requirements, it has received certain requested relief on its delinquent prior period Quarterly Reports from the Securities and Exchange Commission ("SEC"). In short, the Company was granted relief under its proposal whereby the Company would file its delinquent fiscal 2008 Quarterly Reports, but would not have to file its delinquent fiscal 2007 Quarterly Reports. In granting the Company relief from filing its 2007 Quarterly Reports, the SEC staff reminded Teletouch that its acceptance of the fiscal 2008 Quarterly Reports as sufficient to bring Teletouch up to date with its filings ("currency" in this regard), it would not mean that the completion of such prior period 2008 Quarterly Report filings would be deemed as "timely" for the purposes of certain corporate events, including the availability of Form S-3 and Form S-8 registrations.The Company's most recent timely filing of this fiscal 2009 Annual Report on Form 10-K begins a period of "timely filing" for determining the Company's future eligibility for these Forms. In addition, the SEC indicated that it would advise further consultation with the staff regardingwhen Teletouch would be deemed up-to-date in its filings, for the purposes of the availability of Rule 144 resale of restricted securities. The Company anticipates filing its delinquent fiscal 2008 Quarterly Reports by December 31, 2009, and that all fiscal 2010 Quarterly Reports will be filed timely.

For the fiscal year ended May 31, 2009, the Company announced the following results [the Tables below present selected financial data, including certain non-GAAP measures; see Teletouch's fiscal 2009 Form 10-K filed on August 31, 2009 for complete financials and additional information]:

Table 1 -- Explanatory notes: The Company bills its customers in excess of its reportable GAAP revenues, in the form of "Gross cellular subscriber billings," a non-GAAP financial measure, described as the total recurring monthly cellular service charges invoiced to the Company's wireless subscribers. The Company takes 100% ofthe accounts receivable risk for all of its billings, before deducting a fixed percentage of the dollars invoiced for cellular usage that are payable to AT&T under the Company's various master distributor agreements.

In order to provide an understanding of how the Company arrives at its Total Operating Revenue (a GAAP measure of results), Table 1 below denotes how the Company's Gross subscriber billings and its related revenue sharing deductions are combined to reach the GAAP results.