SOURCE: TeleCommunication Systems, Inc.

August 05, 2008 08:00 ET

TCS Named Sole Awardee of U.S. Army Contract for up to $246 Million of Deployable Satellite Solutions

Delivery Order Brings Total Awards to TCS Under World-Wide Satellite Systems (WWSS) Vehicle to More Than $350 Million in 22 Months

ANNAPOLIS, MD--(Marketwire - August 5, 2008) - TeleCommunication Systems, Inc. (TCS) (NASDAQ: TSYS), a leading provider of mission-critical wireless communications, was named the sole awardee of an indefinite delivery/indefinite quantity delivery order with a potential value of $246 million over the next 39 months.

Awarded under the TCS World-Wide Satellite Systems (WWSS) contract vehicle, the delivery order is with the U.S. Army Communications-Electronics Life Cycle Management Command (CECOM LCMC) to support its need for rapidly deployable and highly secure satellite communication access to broadband satellite services. TCS will deliver a full range of deployable satellite solutions based upon the company's highly reliable SwiftLink® deployable communications product line. The Secure Internet Protocol Router (SIPR) and Non-secure Internet Protocol Router (NIPR) Access Point (SNAP) Very Small Aperture Terminal (VSAT) Satellite Systems Program is a follow on to the Military Transition Team (MiTT) VSAT Program awarded to TCS last year.

TCS has received its first SNAP incremental funding of $2.6 million for systems, maintenance and other services. TCS anticipates additional funding on the order soon that would be valued between $25 million and $30 million for systems, additional logistics and operational support, with the majority of this increment targeted for delivery in calendar 2008. These systems are slated for the MiTT Teams engaged in the on-going Contingency (Operation Iraqi Freedom) under Multi-National Coalition -- Iraq (MNC-I). The remainder of the delivery order will be used to support other U.S. Army and Department of Defense users requiring secure voice and data communications in a modular, highly transportable form factor.

The entire order includes options for up to 1,500+ terminals and supporting equipment to be deployed in various sizes and configurations over the next few years, along with up to 30 field support personnel. The company's 2007 investments in capacity for integration, testing, and deployment of its SwiftLink and wireless point-to-point deliverables assures timely delivery on large volume orders that meets customer expectations.

The SNAP VSAT program will be managed by the Army Project Manager for the Warfighter Information Network-Tactical (PM WIN-T) Commercial Satellite Terminal Program (CSTP) through the $5 billion World-Wide Satellite Systems (WWSS) contract vehicle, which is available to support all federal communication missions, including disaster relief and homeland security efforts.

"This delivery order represents another major step toward establishing better revenue visibility for TCS," stated Maurice B. Tosé, president, chairman, and CEO of TCS. "In the first quarter, our funded and unfunded backlog totaled about $225 million, which was double that of the previous year. With this award, total backlog now approximates $450 million."

"This very important piece of business also represents the largest TCS delivery order to date," said Tosé, "and is a testament to our proven ability to deliver successful deployable satellite solutions in support of highly versatile and mobile U.S. military missions. The size and scope of this delivery order demonstrates the trust TCS has earned in supporting the unique needs of the US Army Warfighter."

TCS has established a proven track record over the past decade of providing highly specialized solutions to the Department of Defense, Special Operations and Intelligence Communities, the Department of Homeland Security and the Department of State. The TCS SwiftLink product line meets the critical communications demands of this elite customer set, no matter where or how they deploy.

"The U.S. Army is now acquiring TCS SwiftLink VSAT systems and support services Army-wide via this delivery order," stated Michael Bristol, senior vice president of government solutions for TCS. "This delivery order award, coupled with the company's performance on current U.S. Army and Marine Corps programs, confirms our ability to successfully compete on large multi-faceted opportunities. In the first 22 months of the WWSS contract, TCS leads the six prime-contracting competitors in quantity of delivery orders won. We are now positioned second in terms of total measured contract award value, since this latest contract brings us to more than $350 million of delivery order awards. This was a hotly contested program and an important win to set that stage for other large SATCOM procurements that are in motion. We appreciate the contribution and commitment of our partners, who joined us to build this winning team."

The TCS SwiftLink VSAT systems used to fulfill SNAP program requirements will provide multimedia communications capabilities which convey encrypted voice, video and imagery data. TCS SwiftLink products are highly transportable and ruggedized, with a graphical user interface that facilitates easy set-up and operation. The modularity and "plug and play" interfaces between all RF and Baseband configurations inherent in the SwiftLink product line result in communication solutions tailored to the end-user's specific needs. The initially funded systems will be delivered in early August 2008, followed by 36 months of logistical support.

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, engineered satellite-based services, and commercial location applications, like traffic and navigation, using the precise location of a wireless device. Customers include leading wireless, cable MSOs, and VoIP carriers around the world, and agencies of the U.S. Departments of Defense, State, and Homeland Security. For more information, visit

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 the possibility that the delivery order will not be fully funded, the possibility that equipment will not be delivered on time, the prospect that this order may be the foundation for additional large project wins, the possibility that large-scale production requirements could impair our ability to deliver, the impression that all CENTCOM VSAT terminals will be purchased under this delivery order, and those detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended December 31, 2007 and Form 10-Q for the quarter ended June 30, 2008.

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.