SOURCE: TeleCommunication Systems, Inc.

October 04, 2007 09:57 ET

TCS Celebrates 10-Year Anniversary of Its Short Message Service Center Solution

Company Marks Decade of Text Messaging Investment, Innovation and Meaningful Personal Moments for Consumers

ANNAPOLIS, MD--(Marketwire - October 4, 2007) - TeleCommunication Systems, Inc. (TCS) (NASDAQ: TSYS), a leader in wireless data solutions, today marks 10 years of messaging innovation and continued commitment to its text messaging business. Since the outset in 1997, TCS has grown its messaging market presence from a single, small regional carrier to the current premier delivery engine for Short Message Service (SMS) text messages in the U.S. TCS Short Message Service Centers (SMSCs) are on pace to deliver nearly 80 billion messages by end of year 2007.

"Ten years ago, our SMSC was first used as a mechanism for voicemail systems to notify mobile users that a new message was awaiting their retrieval," said Maurice B. Tosé, Chairman, President and CEO of TCS. "Today, SMS has become a key communications medium for many consumers and serves as an effective means for anytime, anyplace interpersonal communication."

SMS is now compatible with virtually 100 percent of all cell phones in the hands of more than 240 million U.S. subscribers, according to recent CTIA figures. SMS has also clearly established its place in the operator value chain. Recent studies indicate that 20 percent to 25 percent of all operator revenues today are generated by data services, and 90 percent of data revenues come from SMS. Consumers' love for and adoption of text messaging continues to increase as evidenced by sustained year-over-year doubling of SMS traffic -- largely fueled by intercarrier messaging, televoting and unlimited in-network text messaging plans. SMS is expected to be used as a reliable, easy-to-use transport for new services such as mobile payment, mobile banking, location-based mobile search and ad-sponsored content.

"Our first SMSC product release provided simple voicemail notification using mobile terminated messaging via a Service Node 'hot standby' architecture," said Drew Morin, Senior Vice President and Chief Technical Officer of TCS. "In contrast, the current version of the TCS SMSC with Wireless Internet Gateway is a high-performance distributed solution, operating on a geo-diverse, load balanced architecture, supporting guaranteed two-way message delivery via First Delivery Attempt and traditional store and forward mechanisms in support of 2.5G (CDMA, GSM) and 3G mobile broadband Internet Protocol-based networks."

TCS SMSC product innovations, in the field of wireless messaging, are protected by numerous intellectual property patent awards granted throughout the past decade. TCS SMSC highlights from the past decade:

--  SMSC Application Developer Program partner with Lucent Technologies
--  Intelligent Network-based Mobile Originated Code Division Multiple
    Access (CDMA) Short Message Service
--  Nokia Sugar Bowl Interactive Text Messaging Menu Promotion
--  SmsExpress™ Next-Generation First Delivery Attempt (FDA) for
--  Next-generation delivery over mobile broadband Internet Protocol (IP)
    and IP Multimedia Subsystem (IMS) networks
--  Geo-diverse, active/active load balanced architecture
--  Lucent's SMSC partner of choice


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.

Except for the historical information contained herein, this news release contains forward-looking statements as defined within 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 subject to risks and uncertainties and are based upon TCS' current expectations and assumptions that if incorrect would cause actual results to differ materially from those anticipated. Risks include without limitation those risk factors detailed from time to time in the Company's SEC reports, including the reports on Forms 10-K for the year ended December 31, 2006, and 10-Q for the quarter ended June 30, 2007.

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.

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