SOURCE: TeleCommunication Systems, Inc.

May 03, 2007 10:22 ET

TCS Named as Awardee in $750 Million SATCOM-II Program to Provide Satellite Communications and Services for Federal Agencies

Contract for Transport, Equipment, Design/Engineering and Support Services

ANNAPOLIS, MD -- (MARKET WIRE) -- May 3, 2007 -- TeleCommunication Systems, Inc. (TCS) (NASDAQ: TSYS), a leading provider of mission-critical wireless data solutions, today announced the company has been selected by the General Services Administration (GSA) to participate in a $750 million Satellite Services-II (SATCOM-II) Program with an Indefinite Delivery Indefinite Quantity (IDIQ) five-year contract. As one of the prime contractors in the program, TCS received a contract with a $90 million ordering ceiling to support all federal agencies with turnkey, single-source, quick reaction solutions for emerging communications requirements worldwide. These solutions include TCS' SwiftLink® suite of products and services for secure, deployable communications, including Swiftlink Global Satellite Service pre-positioned bandwidth, as well as design, engineering and support services.

"This award represents another significant accomplishment for TCS in the satellite communications market as we enter our 20th anniversary year of providing secure communications to the federal government," said Maurice B. Tosé, Chairman, President, and Chief Executive Officer of TeleCommunication Systems. "The contract strengthens TCS' position as a premier provider of high-quality, next-generation satellite services to the federal government and advances TCS' sales growth in this market segment."

The TCS contract covers three types of satellite services: transport; applications; and design, engineering and maintenance. The GSA contract vehicle includes mobile, fixed and broadcast solutions; distance learning; emergency response/Continuity of Operations Planning (COOP); telemedicine; streaming video; Broadcast Satellite Service (BSS); and satellite system engineering design, configuration, installation, implementation, training and ongoing maintenance.

Mike Bristol, Senior Vice President Network Solutions Group for TCS, stated, "The SATCOM-II contract supplements TCS' WWSS contract win by providing satellite airtime, allowing federal government customers access to the full range of TCS' satellite communications products and services."

TCS continues to lead in satellite communications solutions for the Department of Defense, federal and commercial sectors by providing state-of-the-art satellite technology and associated professional services. TCS recently was named one of six prime contractors awarded a five-year, $5 billion World-Wide Satellite Systems (WWSS) IDIQ contract.

ABOUT GENERAL SERVICES ADMINISTRATION

Founded in 1949, GSA serves as a centralized procurement and property management agency for the federal government. GSA manages more than one-fourth of the government's total procurement dollars and influences the management of $500 billion in federal assets, including 8,300 government-owned or leased buildings and 205,000 vehicles. GSA's mission to provide superior workplaces, expert technology solutions, acquisition services, purchasing and eGov Travel solutions and management policies, at best value, allows federal agencies to focus on their core missions.

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 operators 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 assertion that TCS potential contract value will approach $90 million 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.

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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