Teletouch Awarded TXMAS and Texas BuyBoard Contracts for Public Safety Equipment and Radio Telecommunications Products

Teletouch Communications, Inc. (OTCBB: TLLE), a premier U.S. wireless services, cellular, consumer electronics and public safety equipment provider, today announced the recent awards of two multi-year statewide purchasing contracts, along with a report on related current purchase orders received. The first announcement was the approval of Teletouch as the Texas Multiple Award Schedule (TXMAS) contract holder #TXMAS-11-84060 for a term of 5-years, initially providing public safety products from Whelen® Engineering Company, Inc. Participation for buyers in the TXMAS program is open to all cities and counties, as well as schools and school districts throughout the state of Texas.

TXMAS contracts are established as an alternative purchasing method by Texas Procurement and Support Services (TPASS). The TXMAS contracts are developed from and are related to contracts awarded by the federal government. As a result of the Company’s recent General Services Administration (GSA) multi-year contract award, Teletouch was accepted to the TXMAS program for its comprehensive product line of public safety, emergency vehicle lighting and siren equipment. Teletouch's TXMAS contract is effective through September 30, 2015, with automatic renewals as of and on same the date(s) that the Company’s GSA contract terms are renewed.

Teletouch also announced that it was recently named as an approved vendor by the Texas BuyBoard®. BuyBoard is a state sponsored organization created to help local Texas governments and school districts simplify their purchasing processes, by establishing pre-approved suppliers. Public entities use BuyBoard to more easily find and procure various products and services they require. As a prequalified, preferred BuyBoard vendor, Teletouch is now able to provide a one-stop public safety product resource for all Texas cities and school districts, including for uses in law enforcement, EMS, fire and rescue, security and construction. Included in the product line-up are all Teletouch provided lights, sirens and consoles for emergency and other vehicles, as well as two-way radios, headsets and dispatch consoles, including new digital Motorola® wireless communications equipment and related accessories.

"The recent awards of these two state purchasing contracts are significantly increasing sales in our public safety equipment division,” stated T. A. "Kip" Hyde, Jr., President, Chief Operating Officer and Director of Teletouch. "Purchase Orders received mid-way through the first quarter of our current fiscal year 2012 have already exceeded last fiscal year’s total sales of $1.2 million. Our pipeline for the full fiscal year (ending May 2012) appears strong and the division’s sales could have total sales of $6 - $8 million.”

Mr. Hyde continued, "Last year’s award of our long-term GSA contract paved the way for the awards of these state purchasing contacts, further validating the product sales strategy we outlined to investors last year. Now that we are more established in the state government procurement space, we will start working toward offering additional products and services through these contracts and further expanding our direct sales and geographic distribution footprint.”

Teletouch recently launched a new website to support government and cooperative purchasing programs, public safety equipment and two-way radio communications products. The site is located at http://shop.teletouch.com.

About Teletouch Communications

For over 46 years, Teletouch has offered a comprehensive suite of wireless telecommunications solutions, including cellular, two-way radio, GPS-telemetry and wireless messaging. Teletouch is a leading direct Authorized Service Provider and billing agent of AT&T (NYSE: T) products and services to consumers, businesses and government agencies, as well as an operator of its own two-way radio network and LTR systems in Texas. Teletouch also maintains a distribution agreement with Clearwire (Nasdaq: CLWR), as a provider of advanced 4G and WiMax wireless network services. Teletouch operates a chain of 20 retail and authorized agent stores under the "Teletouch" and "Hawk Electronics" brands, in conjunction with its own 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 large cellular carrier agents 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.

The registered trademarks of BuyBoard, Motorola, Whelen and 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.