TLL Proshares Ultrashort Telecommunications

Teletouch Communications, Inc. (AMEX:TLL) today announced that on Thursday, January 4, 2006, at 4:30 p.m. EST, the Company will attend a hearing before an American Stock Exchange (�Amex� or the �Exchange�) Listing Qualifications Panel (the �Panel�) to present its plan of compliance with the Amex continued listing requirements and request continued listing on the Amex. On October 24, 2006, the Exchange Staff notified the Company that it was no longer in compliance with Sections 1003(a)(ii) and (a)(iv) and Sections 134 and 1101 of the AMEX Company Guide. These Sections require Amex-listed companies to comply with the minimum shareholders' equity, and, currency in public reporting under the Securities Exchange Act of 1934, as amended, continued listing requirements. Pending the hearing and the Panel�s subsequent determination, the Company�s securities will remain listed on the Exchange. The Company can provide no assurance that the Panel will accept the Company�s plan of compliance and grant its request for continued listing, or that, even if it does, the Company will be successful in implementing the plan as proposed. In the event that the Company�s securities are delisted from the Amex, the Company will seek to be listed on the Pink Sheets, which provides electronic quotation and trading information. As previously announced, Teletouch has had difficulty in preparing its current and historical consolidated financial statements related to completing the audit of its recent acquisition of Progressive Concepts, Inc. (�PCI�). Teletouch acquired PCI on August 11, 2006. For a complete description of the transaction, see the Company�s Current Report on Form 8-K filed with the SEC on August 17, 2006. About Teletouch Communications For over 40 years, Teletouch has offered a comprehensive suite of telecommunications products and services, including cellular, two-way radio communications, GPS-telemetry and wireless messaging services throughout the United States. Teletouch�s wholly-owned subsidiary, Progressive Concepts, Inc., is a leading U.S. provider of wireless cellular voice, data, and entertainment products and branded wireless services to individuals, businesses, and government agencies. PCI provides these products and services through its chain of retail stores (under the �Hawk Electronics� brand), Hawk-branded agents, a direct sales force in Texas and Arkansas, and through the Internet (www.hawkelectronics.com). PCI also operates a significant national 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). Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Forward-looking statements may address the Company's expected future business or financial performance, and future reporting of historic operating results the accounting for which has not been completed. Forward-looking statements often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," or "will." The quarterly results for the period ended August 31, 2006 recited above are preliminary and therefore are forward-looking. 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.