Teleste Educational, Ltd. and California State University Announce Partnership Agreement to Develop a Web-based Virtual Interactive Language Laboratory Cooperative Venture Will Serve as Model for Similar University Programs Nationwide Miami, Florida (simultaneously Long Beach, California) May 17, 2000 -- Teleste Educational, Ltd., the renowned leader in the global educational market as a developer and supplier of technology enhanced solutions for learning environments, and the California State University (CSU), the largest four-year university system in the U.S., have completed a cooperative agreement to develop a multi-campus language/learning program to facilitate foreign language instruction using Web-based technologies. The implementation of such a program will serve as a model for similar remote-learning solutions in other universities across the country. The Teleste and CSU project is a first-of-a-kind initiative that will provide a virtual interactive language laboratory to students whether they are on campus, at home or at any location. Traditionally, foreign language learning resources have been only available in individual learning centers on CSU campuses through network technologies. We are thrilled to partner with CSU in this next generation language initiative for students, said Tuomo Lehtovirta, president, Teleste Educational, L.L.C., Miami, Florida. CSU is widely regarded for its foreign language programs and its forward-thinking efforts to develop new and effective ways for students to learn languages. As a pioneer in educational software products throughout the world, this partnership will afford Teleste to expand its efforts in the U.S. The opportunities for both Teleste and CSU are boundless, Lehtovirta added. The objectives of this project are to maximize Teleste's educational software capabilities in a distributed learning mode and develop and implement a multi-point, distance language learning laboratory structure within the CSU campus system. CSU will design and manage the curriculum process for language instruction and resource sharing available to students on a 7 day, 24 hour basis. CSU will provide relevant field data to Teleste on the use of its software/equipment for future product design efforts. This innovative educational project offers substantial benefits for both CSU and Teleste, said Gary Hammerstrom, Assistant Vice Chancellor of Academic Affairs, CSU. CSU has long identified the importance of students becoming globally savvy with proficiency in foreign languages being a key component. By teaming with Teleste, the single best hardware and software language provider in the world, we will have the opportunity to expand our curricular objectives in foreign language instruction. The Teleste and CSU project will span a two-year period in which activities will be conducted through a phased approach. During the different phases, Teleste will develop a multi-campus distributed learning solution to stream video and audio language files and associated programs. The Company will, as well, incorporate synchronous and asynchronous video communication using Teleste equipment and software. As part of the curriculum design and management process, CSU will provide three campuses in the University system in which to test and implement the project. ABOUT CSU: The CSU comprises the largest four-year college system in the nation with about 360,000 students enrolled in its 23 campuses that extend 1,000 miles from Arcata in the north to San Diego in the South. The campuses offer diversified course offerings in humanities, arts, education, sciences, social sciences, and business. The system prepares about 60 percent of the teachers in the state and more graduates in business, engineering, agriculture, communications, health, education, and public administration than all other California universities and colleges combined. Altogether, about half the bachelor's degrees awarded in California are from the CSU. ABOUT TELESTE: Teleste Educational is a division of Teleste, the international technology Group specializing in broadband telecommunications networks, TV signal distribution and control equipment and multimedia environment for language learning. Teleste Educational has enjoyed a leading position for over thirty years in the global educational market as a developer and supplier of technology enhanced solutions for learning environments. From language laboratories to digital, multimedia resource centers, the company has designed and deployed over 15,000 learning systems in schools of various levels, colleges and university centers in 90 countries worldwide. With 400,000 students enrolled in these educational establishments, languages and other cross-curriculum, Teleste's customers have relied on the Company's solutions to train millions of students in foreign languages and other cross-curriculum areas.

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