No, you won't because the other records have a row in table2 that has a value that is not TE. This is because the condition is in the Where clause.
If that's what you need for your report, you might try using a command, which is a SQL Select statement (see Best Practices When Using Commands with Crystal Reports for more info about doing this.) Writing the SQL like this should get you what you're looking for:
Select <all the fields for the report>
from Table1
left join Table2 on Table1.keyField = Table2.keyField and Table2.Field = 'TE'
-Dell