Cardo Systems Announces Partnership with Teletouch Communications Subsidiary, Progressive Concepts, Inc.

PCI adds Scala Family of Cutting-Edge Bluetooth[R] Headsets in its Hawk Electronics Stores

PITTSBURGH -- Cardo Systems, Inc., a leading developer and manufacturer of advanced wireless Bluetooth([R]) devices for the consumer electronics market today announced its new distribution partnership with Progressive Concepts, Inc., a wholly-owned subsidiary of Teletouch Communications, Inc. (OTC: TLLE). PCI will become the newest valued addition to Cardo's targeted distribution channel.

PCI provides mobile, portable and personal electronics products and services to individuals, businesses, and government agencies, through its wholesale distribution division, PCI Wholesale (www.pciwholesale.com), a direct sales force and its leading regional consumer electronics retail chain, Hawk Electronics (www.hawkelectronics.com).

"We are very pleased to be forming this partnership with PCI," said Abraham Glezerman, Chairman and CEO of Cardo Systems. "Both companies are leaders and experts in their fields; Cardo, at providing the most technically advanced and stylish Bluetooth personal headsets and PCI, as a sales leader in mobile electronics products. PCI only carries the most innovative and value-adding consumer products and Cardo's assortment of Bluetooth personal headsets are sure to exceed the company's expectations."

T. A. "Kip" Hyde, Jr., Teletouch Communications President and COO and CEO of PCI added, "As more and more states adopt hands-free cell phone laws, Bluetooth-enabled technology in all forms becomes increasingly important. As a Bluetooth innovator, Cardo Systems is an emerging leader in this high-growth category. Both our retail and wholesale customers have shown strong positive initial response to Cardo's exceptionally well designed, user friendly product line."

Both the PCI Wholesale division and PCI's nearly 30 Hawk Electronics company-owned and authorized agent locations, including eCommerce sites will carry the full line of Cardo Systems Bluetooth[R] headsets including the iconic, Cardo S-800[TM]. The headset's high-end features and superbly crafted design make the S-800[TM] one of the most feature-rich and technologically advanced headsets available on the market. It is designed for extensive wear and use, and can be worn in-the-ear or with a stylish over-the-ear loop.

The S-800[TM] offers up to 8 hours talk-time and one week of standby time. The headset's superb acoustic technology, noise suppression solutions and high-end speaker provide superior audio performance. Among its outstanding features, the S-800[TM] offers Hot-Dialing, allowing users to store and speed-dial up to three different numbers with one simple click of a dedicated button. It also features a Headset Location Buzzer which allows a user to page their headset using their mobile phone if they misplace it.

About Cardo Systems, Inc.

Cardo Systems, Inc., headquartered in Pittsburgh, PA, specializes in the design, development, manufacturing, and sale of innovative wireless Bluetooth([R]) consumer electronic devices. Cardo's award-winning products integrate state of the art technology and features, with the latest innovative audio design. Cardo products include the scala-700[TM], which was selected Best Headset among 17 leading brands, as well as the scala-600[TM] and scala-500[TM] Bluetooth([R]) headsets; the scala-rider[TM] line of innovative Bluetooth headsets for motorcycle helmets; and Bluetooth adapters, which convert any standard mobile or cordless land-line phone into Bluetooth capable devices. For more information on any Cardo Systems' Bluetooth[R] personal headsets or Bluetooth[R] helmet-mounted motorcycle headsets, visit our web site at www.cardosystems.com.

About Teletouch Communications

For more than 40 years, Teletouch has offered a comprehensive suite of telecommunications products and services including cellular, two-way radio, GPS-telemetry, wireless messaging and public safety/emergency response vehicle products and services throughout the U.S. Teletouch's wholly-owned subsidiary, Progressive Concepts, Inc. (PCI), is a leading provider of AT&T Mobility[R] services (voice, data, entertainment), as well as other mobile, portable and personal electronics products and services to individuals, businesses and government agencies. PCI operates a chain of retail stores and sells under the "Hawk Electronics" brand; through Hawk-branded sub-agents; its own direct sales force and through the Internet at various sites including: www.hawkelectronics.com and www.hawkexpress.com, among others. PCI also operates a national wholesale distribution business, PCI Wholesale, which serves smaller cellular and automotive retailers, car dealers and rural cellular carriers throughout the country; Dealers and Retailers see www.pciwholesale.com. Additional information on Teletouch's Emergency Vehicle Products group can be found at www.teletouchevp.com. Teletouch's common stock is traded Over-The-Counter on the Pink Sheets electronic exchange under stock symbol: TLLE. Additional information about Teletouch can be found at http://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 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 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.

[R] The Bluetooth word mark and logos are owned by the Bluetooth SIG, Inc. and any use of such marks by Cardo Systems, Inc. is under license. All other trademarks and trade names are those of their respective owners.