TCS Wins Multi-Year Support Contract with National Capital Region - Director of Information Management

Business Wire, July 27, 2004

ANNAPOLIS, Md. -- TeleCommunication Systems, Inc. (TCS) (NASDAQ:TSYS), a global in leader wireless data technology, today announced it has been awarded a multi-year contract with the National Capital Region - Director of Information Management Enterprise Operations and Maintenance (NCR-DOIM, EOM) directorate headquartered at Fort Belvoir, Virginia.

The contract valued at approximately $20 Million - $3.258 million during the first year with four option years - runs through July 2009. Under the contract, TCS will provide Information Technology (IT) services and systems integration support for NCR-DOIM and their customers on six additional United States Army installations. TCS will participate in integrated teams to support NCR-DOIM, EOM in providing their customers with superior network, application, server, telecommunications, and desktop services. Staffing will also include call center and help desk support.

"NCR-DOIM is tasked to provide the most advanced and reliable Information Technology to support our customers," said Mr. Robert Roye, Director, Enterprise Operations & Maintenance for NCR-DOIM. "TCS' broad capabilities, innovative technical approach, and proven processes for delivery of this support have won our confidence."

IT support services have been an integral component of TCS offerings, since its inception in 1987. TCS started operations as a systems integrator serving the Federal government sector and has continued to grow its customer base in the Departments of Defense, Justice, and State as well as civilian, state and local organizations throughout the past 17 years.

"NCR-DOIM will benefit from TCS' years of exemplary IT service. We have a successful record of partnering with clients on similar projects that makes TCS especially well-prepared to deliver superior performance while lowering NCR-DOIM's total lifecycle costs," said Michael Bristol, Vice President of the Network Solutions Group for TCS.

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 when 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.