SOURCE: TeleCommunication Systems, Inc.

November 29, 2006 06:00 ET

TCS Awarded Satcom Contract to Provide Secure Federal Communications Network

Private Network to Address Continuity of Operations Requirements

ANNAPOLIS, MD -- (MARKET WIRE) -- November 29, 2006 -- TeleCommunication Systems, Inc. (TCS) (NASDAQ: TSYS), a leading provider of mission-critical wireless data solutions, today announced it has won a Federal contract to supply a complete secure satellite communications (satcom) network for an agency of the U.S. government. TCS will provide the agency with its SwiftLink® deployable communication suite, a complete, end-to-end communications solution that incorporates satellite terminals as well as the space segment and a communications hub. TCS incorporated the hub and remote equipment from iDirect Technologies Inc. (iDirect), a subsidiary of VT Systems Inc.

TCS' SwiftLink deployable communications solution provides the agency with satellite communications capability and redundancy necessary to meet its Continuity of Operations (COOP) requirements. The lightweight SwiftLink units provide secure data, voice and video access; connectivity anywhere and anytime with rapid, easy setup. TCS is supplying a 3.8-meter Very Small Aperture Terminal (VSAT), multiple 1.8-meter VSATs and a deployable and custom 2.0-meter SwiftLink. Combined with an iDirect hub and 2M/2Mb satellite bandwidth connectivity, the agency will have tactical broadband communications in any conditions.

"This is an outstanding contract win for TCS as the Company was not only selected based on our ability to provide an end-to-end solution, but on our past performance in successfully working with other Federal agencies to meet their secure satellite communications requirements," said Maurice B. Tosé, Chairman, President and CEO for TCS. "This agency helps to protect all citizens of the United States, and it is rewarding to know that they have the confidence to share critical information via TCS' satellite technology."

The iDirect satellite networking solution, already widely deployed around the world by multiple government, military and enterprise customers, provides remote users with highly efficient IP broadband connectivity where traditional terrestrial networks do not reach or are no longer operational.

"iDirect and TCS have an outstanding history of collaboration to provide critical communications solutions to the Federal government," said John Kealey, President and CEO, iDirect Technologies. "TCS' products and services combined with the iDirect hub provide an effective and complete communications solution for an important U.S. government operation that ultimately protects the welfare of the Nation."


iDirect Technologies, a subsidiary of VT Systems Inc., designs, develops and markets satellite-based broadband access solutions targeted at the enterprise, government, carrier and educational sectors that have the need for fast, flexible, and geographically dispersed two-way Internet/Intranet access. The company has developed technology solutions that combine high performance, worldwide availability, and ease of installation, high reliability, and low cost to end customers. In addition, iDirect solutions offer unprecedented efficiencies, increased revenue opportunities and higher per customer gross margins to satellite network operators. iDirect was included in the Deloitte & Touche Technology Fast 500 list of the fastest-growing U.S. technology companies and one of Virginia's top 50 fastest-growing technology companies for both 2003 and 2004. iDirect operates its corporate headquarters in Herndon, Virginia, and has regional offices in Europe, Asia, and covering Latin America. Additional information is available on the company Website at


TeleCommunication Systems, Inc. (TCS) 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.

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 and 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.

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