TLL Proshares Ultrashort Telecommunications

Teletouch Communications, Inc. (AMEX:TLL) reconfirmed its prior guidance that the Company will amend and restate its financial statements for the fiscal years ended May 31, 2002 and 2003, respectively, consistent with its understanding with the SEC staff. Specifically, the Company expects to file its Form 10-K for the fiscal year ended May 31, 2004 containing its amended and restated Consolidated Statement of Operations for the years ended May 31, 2002 and 2003, and Consolidated Balance Sheet as of May 31, 2002 and 2003 on or soon after the end of September 2005. The Company further restated that it appeared that there would be no impact on the Company's results of operations, financial position or cash flows for the years ended May 31, 2004 and 2005, respectively. In the interim, the Company urged investors and other users of the Company's SEC filings not to rely on the Company's financial statements for the years ended May 31, 2002 and 2003, to the extent they are affected by the previously announced accounting issues. Also, as previously announced, the Annual Report on Form 10-K for its fiscal year ended as of May 31, 2005, has not been filed due to the anticipated restatement of the Company's Consolidated Statement of Operations for the years ended May 31, 2002 and 2003 and its Consolidated Balance Sheet as of May 31, 2002 and 2003. The readers of this press release are urged to read carefully the Company's previous public announcements and regulatory filings with the Securities and Exchange Commission, including the press release and a Current Reports on Form 8-K filed with the Securities and Exchange Commission, both dated September 2 and 7, 2005 respectively. About Teletouch Teletouch Communications, Inc., a proven U.S. leader in wireless messaging and related network management, provides a complete suite of mobile asset tracking solutions using sophisticated, yet cost-effective GPS-based hardware and software products for fleets, hazardous materials and "worker-down" emergency notification applications. In addition to its telemetry business, Teletouch offers two-way radio communications, cellular and wireless messaging services throughout the United States. Teletouch's common stock is traded on the American Stock Exchange under stock symbol: TLL. Additional product, business and financial information for Teletouch is available at www.Teletouch.com. This release contains certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act, as amended, that are based on management's exercise of business judgment as well as assumptions made by and information currently available to management. When used in this document, the words "may," "will," "anticipate," "believe," "estimate," "expect," "intend" and words of similar import, are intended to identify any forward-looking statements. You should not place undue reliance on these forward-looking statements. Negotiations with respect to the transaction that are the subject of this release are ongoing and may result in significant modifications to the transaction. There can be no assurance that the transaction that is the focus of this release will be concluded, or if concluded that it will be concluded on terms currently contemplated. These statements reflect our current view of future events and are subject to certain risks and uncertainties as noted in our securities and other regulatory filings. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, our actual results could differ materially from those anticipated in these forward-looking statements. We undertake no obligation and do not intend to update, revise or otherwise publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of any unanticipated events. Although we believe that our expectations are based on reasonable assumptions, we can give no assurance that our expectations will materialize. Many factors could cause actual results to differ materially from our forward-looking statements.