Teletouch Announces Strategic Direction for Fiscal Year 2007; Focus Shifts to Expanding Core Business of Providing Cellular and

Teletouch Communications, Inc. (AMEX:TLL) today
announced that Teletouch CEO, T. A. "Kip" Hyde, Jr., in a meeting with
analysts and investors here, outlined a fundamental shift in the
Company's strategic direction for the upcoming fiscal year 2007 toward
providing new cellular and other wireless products and services to
both consumer and enterprise customers. The three initial growth
strategies and related sales programs outlined include: reselling new
Cingular(R) Wireless "Push To Talk" and other cellular services under
an agent agreement with Teletouch affiliate, Progressive Concepts,
Inc. (PCI); providing cellular marketing and infrastructure solutions
for large brands and retail chains; and establishing national
distribution for entirely new mobile multimedia content and related
applications not currently available in the U.S. market, including
movies, TV shows, music videos and casual games, among other mobile
lifestyle products and services.
   Hyde began by stating, "Growth in the multi-billion dollar mobile
services market continues to be among the highest and most promising
areas of sustained technology and revenue development in the United
States today. Around the globe, new cellular and other wireless
content and data services are rapidly emerging, with these digital
technologies driving the creation of whole new categories of
communications services. Our focus will be offering innovative and
effective wireless outsourcing solutions for clients around the
country and identifying key areas of mobile-oriented growth, by
leveraging our long-term core competencies in providing highly
reliable wireless infrastructure, products and services to both
consumers and businesses, in new and meaningful ways."
   "For example, at our most basic wireless sales level, virtually
all of our commercial two-way radio customers also have a cellular
provider. Many of these customers have asked for an alternative to
their typically older and more expensive Sprint-Nextel cellular plans.
By working through our sister company, PCI, Teletouch now has the
ability to satisfy these requests with the newest, industry-leading
Cingular Push To Talk services, as well as more traditional cellular
services, and still maintain direct billing and customer service
control of these customers under PCI's unique distribution
relationship with Cingular."
   Hyde continued, "In addition, even our traditional two-way radio
business is quickly evolving, with new VoIP
(Voice-over-Internet-Protocol) applications allowing radio users to
interconnect seamlessly via wireless broadband internet technologies.
Given its historical cost effectiveness and reliability, we believe
that conventional two-way radio services will continue to be used for
many years to come. However, digital technologies dramatically
increase the functionality of currently installed systems, providing
expanded data-capable networks, as well as increasing the portability
and usefulness of the communication devices themselves. Through our
long-term relationships with Motorola and others, the Company is now
able to deliver these enhanced digital services to its two-way radio
customers."
   Moving to a discussion of Teletouch's second major growth
strategy, providing outsourced cellular-based marketing and
infrastructure solutions for national retail chains and brands, Hyde
explained, "We have specifically identified and contacted a number of
large retailers and consumer brands that have a desire to 'mobilize'
their unique brands and more actively and directly communicate with
their customers via the cellular handset, including integration to
their current web presence. They see the enormous potential and
positive impact that "one-on-one" marketing via the customers' own
cell phones can have on growing their businesses. Whether through the
delivery of electronic coupons, time sensitive promotional messages,
delivery of branded content or most importantly, the ability to drive
instant purchase decisions through the customer's handset, the "third
screen" (after the TV's "first" and PC's "second" screens) is now an
area of enormous importance and value for large retailers and brands."
   Hyde added, "However, many retailers and brands rarely have the
time or spare resources to go through the steep learning curve and
hard-dollar investment required to sort through and implement the
myriad of cellular components required to mobilize the brand. For
example, decisions will include which handsets, carriers, content,
MVNE (Mobile Virtual Network Enabler), billing and content delivery
platforms to use. Then add, for example, development of new web, WAP
(Wireless Application Protocol) and SMS (Short Messaging Service)
applications, integration of CRM (Customer Relationship Management)
integration tools and other related products and services now
available, much less support the custom applications that need to be
built for their unique brand characteristics, and retailers that want
to create a mobile component to their brands are faced with a daunting
task."
   "Teletouch aims to fill this void, by providing turnkey cellular
marketing and infrastructure solutions, including integrating unique
branding, web and WAP infrastructure design and implementation, as
well as promotional, advertising and branded-content delivery
services. This will provide major retailers the opportunity to fully
mobilize their brands, and create brand-specific customer experiences
in the cellular 'mobile lifestyle' space. Both within Teletouch and
through our affiliate company, PCI, we will now have the ability to
provide a full suite of retail-oriented wireless and web-based
products and services. As a result, Teletouch will now be able offer
innovative and effective wireless outsourcing solutions for major
retail and consumer branded clients around the country."
   "Our third major growth initiative is to establish wholesale
distribution relationships for emerging, but proven, cellular
rich-media content providers, and deliver their products and services
nationwide. For example, having identified our first potential direct
partner-provider (to be announced later this year), we will be working
with them to help launch in the U.S. a number of 'first-of-their-kind'
mobile content and rich-media services that let customers get
full-length movies, videos, music, games and more for their mobile
phones."
   Hyde concluded, "Wireless communications is one of the largest
industries in the world, yet it is always growing, evolving, changing.
By definition, change creates new opportunities. Coming off our first
profitable quarter since 2003, and having recast the faltering
telemetry business into a now profitable data hosting model that is
readily expandable, Teletouch hasn't been in a better position to
realize these many potential opportunities for some time. We look
forward to working much more closely with our commonly-owned affiliate
company, PCI in the upcoming fiscal year, and with renewed strength
and vitality, work to create a fresh and dynamic platform for
long-term sustainable growth."

   About Teletouch Communications

   Teletouch offers 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. 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.

   About Progressive Concepts, Inc.

   In continuous operation for over 30-years, privately-held PCI is a
leading provider of cellular 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 throughout
Texas and Arkansas. PCI provides the cellular services on the Cingular
Wireless network, and maintains its own billing, data and customer
service operations for its nearly 100,000 subscribers, businesses and
other licensed clients. PCI also operates a significant wholesale
distribution business serving smaller cellular and automotive
retailers, car dealers and cellular service providers throughout the
country. More information about PCI and Hawk Electronics can be found
at www.hawkelectronics.com.

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derivatives thereof are fully owned by, and all copyrighted and
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(C) 1996-2006 Cingular Wireless II LLC and/or its licensors. SPRINT,
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MOTOROLA is registered in the US Patent & Trademark Office. Any and
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 owners.
   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.