MoviStar Puerto Rico and TCS Initiate E9-1-1 Phase II Deployment; Precise Location Life-saving Service Now Live for MoviStar Puerto Rico Subscribers

Business Wire, July 15, 2004

ANNAPOLIS, Md. -- MoviStar Puerto Rico, a leading wireless communications company in Puerto Rico and TeleCommunication Systems, Inc. (TCS) (NASDAQ:TSYS), a global leader in wireless data technology, announced today the initial deployment of Phase II E9-1-1 services is complete and MoviStar is certified by the Public Safety Answering Point PSAP (Junta de Gobierno 911) in Puerto Rico as being live with Phase II E9-1-1.

MoviStar Puerto Rico's subscribers now have the added security of knowing that when they place an emergency call from their wireless phone their precise location data is being provided to the PSAP, the Local 911 Services Agency. Telefonica Moviles (MC/NYSE:TEM), the leading mobile communications company in the Spanish and Portuguese-speaking market, manages the Puerto Rican wireless operator.

"Our subscribers require the best emergency services available for their safety. Because of TCS' thousands of successful Phase II deployments across the United States, we had confidence to look to them for the most reliable and accurate E9-1-1 solution. This service is now a reality for all MoviStar clients with handsets with GPS capability," said Claudio Hidalgo, Chief Executive Officer for MoviStar Puerto Rico.

With this deployment, MoviStar Puerto Rico offers their subscribers reliable E9-1-1 services that allow PSAPs to locate an emergency caller within 50 meters of the caller's location by using TCS' award-winning Xypoint(R) Location Platform for its hosted Phase II E9-1-1 solution combined with TCS' Hosted PDE (Position Determining Entity) Service. TCS' services include the ability to determine the caller's precise location accurately within seconds in a wide range of environments and the ability to deliver critical data to the local PSAP.

"Our Code Division Multiple Access (CDMA) solution provides MoviStar Puerto Rico's subscribers with TCS' numerous years of expertise in deploying and maintaining E9-1-1 solutions in the United States," said Robert Dawson, Senior Vice President of Service Bureau Operations for TCS. "TCS provides affordable, easy to integrate E9-1-1 Phase II services for regional and nationwide carriers, providing their subscribers with identical quality and accuracy in this life-saving service."

ABOUT MOVISTAR PUERTO RICO

New Comm Wireless Services Inc. d/b/a/ MoviStar is the leader in the development of innovative wireless services in Puerto Rico and operates with an island-wide CDMA state of the art network. The company is managed by Telefonica Moviles, (MC/NYSE:TEM) the leading company of wireless services in Spain, and Latin America and that has operations in the Mediterranean region. Telefonica Moviles has more than 54 million managed customers worldwide. For more information please visit our web page at http://www.movistarpr.com.

ABOUT TELECOMMUNICATION SYSTEMS, INC.

TeleCommunication Systems, Inc. (TCS) (NASDAQ:TSYS) is a leading provider of mission critical wireless data solutions to carriers, enterprise and government customers. TCS' wireless data offerings include location-based Enhanced 9-1-1 services, and messaging and location service infrastructure for wireless operators, real-time market data and alerts to financial institutions, mobile asset management and mobile office solutions for enterprises, and encrypted satellite communications to government customers. For more information visit www.telecomsys.com.

This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. These statements are based upon TCS' current expectations and assumptions that are subject to a number of risks and uncertainties that would cause actual results to differ materially from those anticipated.

The actual results realized by the Company could differ materially from the statements made herein, depending in particular upon the risks and uncertainties described in the Company's filings with the Securities and Exchange Commission (SEC). These include without limitation risks and uncertainties relating to the Company's financial results and the ability of the Company to (i) sustain profitability as early as anticipated, (ii) continue to rely on its customers and other third parties to provide additional products and services that create a demand for its products and services, (iii) conduct its business in foreign countries, (iv) adapt and integrate new technologies into its products, (v) expand its business offerings in the new wireless data industry, (vi) develop software and provide services without any errors or defects, (vii) protect its intellectual property rights, and (viii) implement its sales and marketing strategy.

Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to update or revise the information in this press release, whether as a result of new information, future events or circumstances, or otherwise.