Teletouch Subsidiary Progressive Concepts, Inc. (dba Hawk Electronics) and AT&T Reach Tentative Settlement in Mediation – Parties Mutually Agree to Reschedule Arbitration Hearing Start to July 22, 2011

FORT WORTH, Texas--(BUSINESS WIRE)--Teletouch Communications, Inc. (OTCBB: TLLE), a leading U.S. wireless services, cellular, consumer electronics and public safety equipment provider today announced that its wholly-owned subsidiary, Progressive Concepts, Inc. dba Hawk Electronics (“PCI”), held its scheduled May 17, 2011, mediation in the pending binding arbitration proceeding against AT&T (NYSE: T). At the mediation, the parties made significant progress toward reaching a settlement agreement, the final terms of which - if finally agreed upon - will be documented over the next few weeks. No details about the settlement are being made publicly available until final settlement negotiations are agreed to and documented by the parties. To provide adequate time for the anticipated settlement documentation to be completed, the parties agreed to move the arbitration start date from June 13, 2011, to July 22, 2011. In the event that the parties are not successful in reaching mutual agreement on a final settlement agreement, the arbitration hearing will commence on July 22, 2011.