Teletouch Announces New Subsidiary, Progressive Concepts, Inc., a Leading Cingular Master Distributor, Reseller and Top-10 MVNO

Teletouch Communications, Inc. (AMEX:TLL) announced
today that on August 11, 2006, it became the owner of all of the
issued and outstanding equity securities of Progressive Concepts, Inc.
("PCI"), based in Fort Worth, Texas. PCI is a leading Cingular(R)
Wireless Master Distributor, Reseller and Top-10 MVNO (Mobile Virtual
Network Operator), known in Texas and Arkansas under the Hawk
Electronics consumer brand name for over thirty years.
One-hundred-percent of the issued and outstanding equity securities of
PCI were contributed to Teletouch by TLL Partners, LLC ("TLLP"), a
Delaware limited liability company and the holder of more than 82% of
Teletouch's outstanding common stock. Teletouch did not issue any
monetary or stock consideration in connection with the equity
contribution. The operating results of PCI will be consolidated with
those of Teletouch for financial reporting purposes.
   Teletouch's existing business and the newly-acquired PCI business
will combine over 40 years of operating history in multiple forms of
direct and wholesale wireless product and service sales, billing and
customer service to consumer, business and government users, including
a unique distribution and reseller co-branding relationship with
Cingular(R) Wireless, sold under the "Hawk Electronics" retail brand
and "Hawk Corporate Communications" name for direct sales to
enterprise and government customers. Related PCI operating units
include PCI Marketing, a leading cellular and automotive electronics
wholesale distributor, supporting a national commercial base of some
2,000 smaller consumer electronics retailers and auto dealers for such
leading manufacturers as Motorola, Nokia, Sony, JVC, XM and Sirius
Satellite Radio, Digital Antenna, Blaupunkt, and many others.
   PCI provides all of the cellular billing and customer service for
its own customer base, and retains a recurring revenue stream on all
monthly billed cellular airtime and data revenues, and one-time
revenue on all other cellular and non-cellular products and services.
After accounting for various discontinued operations, including the
previously announced sale of its paging business, TLL consolidated
fiscal year 2007 revenues are expected to increase to approximately
$92 to $95 million, of which roughly 60% is expected to consist of
recurring wireless services billing income.
   Teletouch CEO, T. A. "Kip" Hyde, Jr. stated, "The Company will now
serve approximately 100,000 cellular, wireless messaging and two-way
radio subscribers, agents and independent retailers throughout our
region and the country. As we expand our cellular services footprint,
within our own distribution channels and through our enterprise
customers, we expect to see an exciting transition into the
high-growth mobile SMS, content delivery, MVNO and MVNE (Mobile
Virtual Network Enabler) businesses, as well as show solid internal
growth in our core consumer and wholesale cellular subscriber bases.
To realize our goal of becoming a leading mobile lifestyle services
provider, this structure provides Teletouch with a solid platform for
long-term growth."
   The current business of PCI is very similar to the paging and
two-way wireless services businesses that Teletouch has provided for
more than four decades. For over twenty-years, PCI's core business has
been in acquiring, billing, and supporting now over 90,000 cellular
subscribers under a unique, recurring revenue relationship with
Cingular Wireless. The consumer services business is operated
primarily under the Hawk Electronics brand name, with business and
government sales provided by the Hawk Corporate Communications group.
As a Master Distributor, MVNO and MVNE, PCI controls the entire
customer experience, including initiating and maintaining the cellular
service agreements, rating the cellular plans, providing complete
customer care, underwriting new account acquisitions, and providing
multi-service billing, collections, and account maintenance. The
original agreements between PCI and Cingular (and its predecessors)
span over twenty years and now comprise a number of multi-year
agreements in specifically-contracted markets in Texas and Arkansas.
   Key to the success of PCI has been its proprietary,
internally-developed cellular/multi-service billing and customer
service platform providing PCI with a distinct competitive advantage
over other entrants to this MVNO market. Not only does the platform
provide core post-paid cellular billing, the complete system allows
PCI to offer unique services to its subscribers, including:
consolidation/bundling of different products and services into one
monthly invoice; instant credit scoring; web-based bill payment; and
many advanced, real-time customer relationship management ("CRM")
functions. For corporate and government customers, the proprietary
billing platform provides custom, highly-detailed billing support and
services generally not available from the carriers themselves. This
highly sophisticated billing system is one of PCI's most important
assets, and has been fully incorporated into all aspects of the
Company's cellular operations.
   Hyde concluded, "Teletouch can now begin leveraging its combined
forty-plus years of telecommunications experience as it expands into
the Mobile Virtual Network Operator ("MVNO") and Mobile Virtual
Network Enabler ("MVNE") markets as a turnkey service provider to
retailers and other enterprise customers. We look forward to the
challenges and opportunities that we will face in the years going
forward in this exciting and large industry space."
   More detailed information relating to TLL Partners, LLC's
contribution of PCI to Teletouch and the important contractual
arrangements executed in connection therewith may be found in the
Current Report on Form 8-K filed by Teletouch on August 17, 2006.
Further financial information will be filed by way of an amendment to
that Current Report which is required to be filed on or before October
27, 2006.

   About Teletouch Communications and Progressive Concepts, Inc.

   For over 40 years, Teletouch has offered a comprehensive suite of
telecommunications services, including cellular, two-way radio
communications, GPS-telemetry and wireless messaging services
throughout the United States. TLL acquires, bills and supports a
large, primarily commercial business and government base of
subscribers, under its own network of FCC licensed spectrum in Texas,
Louisiana, Arkansas, Oklahoma, Alabama, Missouri, Mississippi,
Tennessee, and Florida. With the addition of PCI, Teletouch is now a
leading U.S. provider of wireless voice, data, and entertainment
products and branded wireless services to individuals, businesses, and
government agencies through its chain of retail stores (Hawk
Electronics), branded sub-agents and direct sales force in Texas and
Arkansas. PCI also operates a significant wholesale distribution
business serving smaller cellular and automotive retailers, car
dealers and cellular service providers throughout the country.
Teletouch's common stock is traded on the American Stock Exchange
under stock symbol: TLL. Additional information about Teletouch can be
found at: 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 Private Securities Litigation Reform Act 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
(which Sections were adopted as part of the Private Securities
Litigation Reform Act of 1995). 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, 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
"Additional Factors That May Affect Our Business" in the Company's
most recent Form 10-K and 10-Q filings, and amendments thereto. In
addition, we operate in a highly competitive and rapidly changing
environment, and new risks may arise. Accordingly, investors should
not place any reliance on forward-looking statements as a prediction
of actual results. We disclaim any intention to, and undertake no
obligation to, update or revise any forward-looking statement.

   The registered trademarks Cingular, Cingular Wireless and any
derivatives thereof are fully owned by, and all copyrighted and
copyrightable materials, including, without limitation, the design,
text, graphics, pictures, sound files and other files, and the
selection and arrangement thereof are ALL RIGHTS RESERVED Copyright
(C) 1996-2006 Cingular Wireless II LLC and/or its licensors. All
product or service names discussed in relation to Teletouch
Communications, Inc., Progressive Concepts, Inc., Hawk Electronics and
any other affiliates are the property of their respective corporate
owners.