Teletouch Communications, Inc. (OTCBB: TLLE), a leading U.S. cellular services provider and consumer electronics distributor, today announced the sale of its two-way radio and public safety equipment business unit for approximately $1.5 million to locally owned and operated DFW Communications, Inc. The sale includes the transfer of all the assets in the group, including the Company's FCC radio frequency licenses used to operate its two-way radio networks in North and East Texas. Teletouch and its predecessor companies have provided two-way radio products and services, starting as a Motorola® Service Station or "MSS" in East Texas, for over 48 years.

"The decision to divest our two-way radio division is another step in the ongoing transition of Teletouch to large scale wholesale distribution of cellular and consumer electronics products, and was made after concluding that this business unit was no longer aligned with the Company's long-term growth strategy," said Teletouch President and COO T. A. "Kip" Hyde, Jr. "The sale of these assets supports our disciplined approach to capital allocation and effective use of working capital, with the proceeds being used to pay down debt, while we focus on growing our core wholesale distribution business."

Hyde continued, "Although two-way radio services and the direct sale of public safety equipment is no longer core to Teletouch, we believe this business has the potential for strong growth, which led us to seek out a buyer that is focused in these areas. Now as part of DFW Communications, this group will be led by a solid leadership team, bringing long-term value for the business, its customers and partners."

Mike Fordinal, Vice President and COO of DFW Communications, stated, "We are excited about the synergy this acquisition brings, including the added capacity for our two-way wide-area communications on our own LTR Trunking Systems, new sales opportunities in both radio and public safety equipment in East Texas, and all of the terrific professionals we now add to our team. We see this as a key investment, significantly expanding our territory and product selection, with tremendous added sales potential for all of our products, technologies, and people resources, operating together in a focused enterprise."

As previously announced, Teletouch is expanding its wholesale distribution segment, with the expectation that this business unit will become Teletouch's primary earnings driver by the end of fiscal year 2015 (May 31, 2015). Since the Company's litigation with AT&T (NYSE: T) was successfully concluded in November 2011, Teletouch has executed several distribution agreements directly with various cellular accessory and handset manufacturers, as well as other mobile electronics companies.

See also www.pciwholesale.com and www.pcidropship.com for additional product information.

About Teletouch Communications

For over 48 years, Teletouch has offered a comprehensive suite of wireless telecommunications solutions, including cellular, two-way radio, GPS-telemetry and wireless messaging. Today, Teletouch is a leading Authorized Services Provider and billing agent of AT&T products and services to consumers, businesses and government agencies, operating a chain of 11 retail and authorized agent stores in North and Central Texas under its "Hawk Electronics" brand, in conjunction with its direct sales force, call center operations and various retail eCommerce websites including: www.hawkelectronics.com, www.hawkwireless.com and www.hawkexpress.com.

Through its wholly owned subsidiary, Progressive Concepts, Inc., Teletouch operates a national distribution business, PCI Wholesale, primarily serving Tier-1 (AT&T, T-Mobile, Verizon, Sprint) cellular carrier agents, Tier-2, Tier-3 and rural carriers, as well as auto dealers and smaller consumer electronics retailers, with product sales and support available through www.pciwholesale.com and www.pcidropship.com, among other B2B oriented websites.

Teletouch's common stock is traded Over-The-Counter under stock symbol: TLLE. Additional information about the Teletouch family of companies can be found at www.teletouch.com.

Motorola and the registered trademarks of each, any and all product or service names discussed in relation to Teletouch Communications, Inc. and its affiliates are the property of their respective owners.

All statements from Teletouch Communications, Inc. 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 the Company's 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, 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
or
DFW Communications, Inc.
Mike Fordinal, 877-730-4339
President
MFordinal@dfwcomm.com
More information available @ www.dfwcomm.com