Thermo Credit, LLC Enters into a $10 Million Funding Arrangement with Progressive Concepts, Inc.

Thermo Credit, LLC ("Thermo"), a receivables funding
company that focuses exclusively on opportunities in the
telecommunications industry, announced today that it has entered into
an agreement with Progressive Concepts, Inc. ("PCI") to provide up to
$10,000,000 in receivables financing. The Thermo facility was a key
component of the financial restructuring and subsequent acquisition of
PCI by its new parent company, Teletouch Communications, Inc.
(AMEX:TLL).
   The PCI facility represents Thermo Credit's initial funding
venture in the cellular MVNO (Mobile Virtual Network Operator) and
communications reseller arena. Seth Block, executive vice president of
external operations for Thermo Credit stated, "We are very excited
about our partnership with PCI. We feel their strong management and
twenty-plus years longevity in the cellular industry make them an
ideal company to work with in this evolving aspect of our business."
   Teletouch CEO, T. A. "Kip" Hyde, Jr. said, "Thermo Credit
originally approached us about financing our paging business, which
was recently sold. However, we were very pleased that Seth and his
team at Thermo could become the financial partner for our newly
acquired, wholly-owned subsidiary, PCI (also known as 'Hawk
Electronics'). Given their significant experience and expertise in the
telecommunications industry, we look forward to a long-term financial
relationship with this team."

   About Thermo Credit, LLC

   Thermo Credit, LLC, a receivables funding company specializing in
the Telecom Industry serves established, well-run telecommunications
companies that need capital to expand their business. Thermo Credit
works with long distance resellers, competitive local exchange
carriers, internet service providers, wireless carriers, and various
other telecommunications companies. For more information, please
contact Seth Block at 504-620-3101 or [e-mail] or visit
www.thermocredit.com.

   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. With the recent 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.