TLL Proshares Ultrashort Telecommunications

Teletouch Communications, Inc. (AMEX:TLL), a leading U.S. wireless communications services company, announced today that on August 14, 2006, it completed the previously announced sale of it paging assets. Subsequent to and as a result of the recent receipt of 100% of the stock of Progressive Concepts, Inc., as reported by Teletouch in its Current Report on Form 8-K filed on August 17, 2006, the paging business no longer met the statutory threshold of a sale of all or substantially all assets of the company as contemplated under Delaware corporate laws and therefore no longer required the approval of Teletouch's shareholders. Subject to the monthly paging net cash flow purchase price reductions provided for in the original Asset Purchase Agreement (APA), gross cash proceeds from the sale were approximately $3.1 million, subject to a working capital adjustment as also provided for in the APA, currently estimated to be approximately $0.2 million. Therefore, the net proceeds are estimated to be approximately $2.9 million. Any potential future adjustments to the purchase price are related to completion of the working capital and cash flow calculations of the paging business and the performance of the accounts receivable that was transferred to the Buyer at closing. Teletouch does not anticipate that these subsequent adjustments to the purchase price will materially impact the total consideration received for the Acquired Assets. More detailed information relating to the sale of the paging assets and the related contractual arrangements executed in connection therewith may be found in the Current Report on Form 8-K filed by Teletouch on August 18, 2006. About Teletouch Communications 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. 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. Through its wholly owned subsidiary, Progressive Concepts, Inc. (PCI), the Company is a leading U.S. provider of wireless 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 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.