SOURCE: TeleCommunication Systems, Inc.

December 21, 2007 08:00 ET

TCS Teams With Verizon Business on U.S. General Services Administration's Washington Interagency Telecommunications System Contract

TCS to Offer Full Spectrum of Products and Services for Federal Agencies in the National Capital Region

ANNAPOLIS, MD--(Marketwire - December 21, 2007) - TeleCommunication Systems, Inc. (TCS) (NASDAQ: TSYS), a global leader in mission-critical wireless communications, today announced that it has a valuable new channel for sales to Washington D.C.-area federal government agencies. TCS is part of the Verizon Business team, one of two teams selected by the U.S. General Services Administration (GSA) for its Washington Interagency Telecommunications System (WITS 3) prime contract, awarded in November. The four-year WITS 3 contract, which is expected to start in January 2008, is valued at as much as an estimated $1.8 billion, including all four annual optional extensions.

As a member of the Verizon Business WITS 3 team, TCS will offer its full spectrum of products and services in support of more than 90 federal agencies and 795,000 federal users in the National Capital Region (NCR), which includes Washington D.C. and portions of its Maryland and Virginia suburbs. As a part of the team, TCS will provide professional services, such as network engineering, telecom expense management, and continuity of operations planning (COOP).

In addition to traditional voice and data service, WITS 3 offers converged Voice-over Internet Protocol (VoIP) services, voice and video teleconferencing services, and Internet access service. Agencies may purchase customer premises equipment, such as telephone sets, PBXs or routers, and technical support services, such as equipment maintenance or project management. The WITS 3 contract offers flexibility to user agencies with Web-based service ordering and multiple billing options, allowing agencies to tailor the use of the contract to their specific ordering and management practices. WITS 3 also will serve as a platform for federal customers seeking to transition to the GSA Networx program over the next decade. For more information about WITS 3, go to www.verizonbusiness.com/wits3.

"TCS looks forward to continuing its strong relationship with Verizon Business by offering the technologies and services that the NCR federal agencies need to support their ongoing telecommunications missions," said Michael Bristol, Senior Vice President, TCS Government Services Group. "It is our intent to provide these customers, the largest local service community of federal government users in the nation, with the best local service telecommunications solutions available. TCS is well positioned to do this based on our work in the Federal market space with key customers in the Department of Defense, Department of Homeland Security, and the Department of State."

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.

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 the estimated potential value of the contract, the prospect that the customers will purchase all or any of the products and services offered by TCS, 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, 2006 and Form 10-Q for the quarter ended September 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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