TCS Awarded $10.8 Million Contract for Tactical Satellite Communications Terminals

TeleCommunication Systems, Inc. (TCS) (NASDAQ: TSYS) today announced it has been awarded a contract by the U.S. Army Communications-Electronics Lifecycle Management Command contracting authority at Ft. Monmouth, N.J., valued at $10.8 million for satellite communications terminals and maintenance that will be used in support of the Military Transition Team (MiTT). The requirement for equipment to support MiTT is part of a three-year, indefinite delivery/indefinite quantity contract with a potential total value of over $29 million if all options are exercised. The initial contract delivery is scheduled for completion this quarter and next followed by 36 months of logistical support.

TCS' VSAT terminals will provide MiTT with multimedia communications capabilities to convey encrypted voice, video and imagery data. MiTT is acquiring TCS' Very Small Aperture Terminals (VSATs) through the $5 billion World-Wide Satellite Systems (WWSS) contract vehicle, which is available to support all federal communications missions, including disaster relief and homeland security efforts. The five-year program is jointly managed by Program Management Warfighter Information Network-Tactical (PM WIN-T) and Program Management Defense Communications and Army Transmission System (PM DCATS) Joint Program Management and is a vehicle for the Commercial SATCOM Terminal Program (CSTP).

"This contract award recognizes our strength in delivering reliable, secure and rapidly deployable communications products that are vital to the support of military tactical missions," said Maurice B. Tosé, Chairman, President and CEO for TCS. "The SwiftLink® suite has been time-tested and proven in a multitude of mission-critical scenarios worldwide. TCS' SwiftLink VSAT terminals are currently in use in harsh military environments around the world, providing on-the-move communications solutions for our customers. Real-time, high-speed, secure information exchange is crucial to America's ongoing efforts to defend against global threats and respond to disaster situations at home and abroad."

ABOUT TELECOMMUNICATION SYSTEMS, INC.

TeleCommunication Systems, Inc. (TCS) (NASDAQ: TSYS) produces wireless data communications technology solutions that require proven high levels of reliability. TCS provides wireless and VoIP E9-1-1 network-based services, secure deployable communication systems and engineered satellite-based services, and commercial location applications, like traffic and navigation, using the precise location of a wireless device. Customers include leading wireless and VoIP carriers around the world, and agencies of the U.S. Departments of Defense, State, and Homeland Security. For more information, visit http://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) reach 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.

Media Contacts: TeleCommunication Systems, Inc. Rita Thompson 410-295-1865 Email Contact Welz & Weisel Communications Evan Weisel 703-218-3555 Email Contact