SOURCE: TeleCommunication Systems, Inc.

December 23, 2008 08:00 ET

TCS Prepares for Record Breaking Text Messaging Volume on New Year's Eve

Text Being the New Talk, Company's Customers to Deliver Nearly 200 Billion Messages in 2008

ANNAPOLIS, MD--(Marketwire - December 23, 2008) - TeleCommunication Systems, Inc. (TCS) (NASDAQ: TSYS), a leading provider of mission-critical wireless communications, today announced that the company expects its customers' platforms to deliver a record number of text messages this New Year's Eve across its globally deployed Short Message Service Centers (SMSCs). Based on previous years' statistics and the threefold increase in deployed platforms in 2008 compared to 2007, TCS anticipates peak text messaging volume on New Year's Eve to be more than 80 percent greater than any peak seen in 2008, and four times greater than last year's New Year's Eve spike. TCS technology has already delivered a record 130 billion text messages during the first three quarters of 2008 and is on track to deliver close to 200 billion messages for the year, more than doubling the volume of 2007. TCS technology was responsible for approximately 25 percent of the CTIA-reported total U.S. 363 billion messages sent in 2007.

To support peak messaging activity, such as New Year's Eve and popular televoting events, TCS' next generation smsExpress™ ( solution provides carriers with high capacity performance via an optimized first delivery attempt. TCS' smsExpress is a proven and cost-effective solution that provides intelligent SMS routing for traffic bursts that generate high text message volume over a short period of time. Operators count on the TCS next generation SMSC to reliably and flawlessly deliver these messages, and they do not have to compromise their needs for guaranteed message delivery with the "fire and forget" approach commonly associated with most televoting solutions.

"TCS looks forward to seamlessly supporting the explosive burst in messaging traffic this holiday season," said Drew Morin, TCS Chief Technology Officer and Senior Vice President. "Text messaging has become an important and cost-effective communications method, which can be reliably delivered even when a voice call would run into congestion. In 2009, we will continue to support wireless operators with additional innovative messaging services to strategically position their opportunity for growth in SMS revenues."

TCS customers typically see a 10-20 percent spike in messaging traffic on peak event days such as the Super Bowl, Mothers Day, Thanksgiving and Christmas. TCS expects that the upcoming historical Presidential inauguration will similarly generate a significant spike in traffic, more so than any other in the past.

TCS is a leading provider of software to U.S. wireless carriers for text messaging. TCS Short Message Service systems include its Short Message Service Center (SMSC) platform and related Wireless Intelligent Gateway (WIG), which also has Location-Based services functions. The TCS Next Generation SMSC supports store and forward, first delivery attempt and voting capabilities over standard air interfaces as well as over mobile broadband. The WIG manages communication between wireless devices and Internet Protocol (IP) services, including email, content services, and other applications. TCS Alerts™ provides geographic targeted messaging compatible with the Commercial Mobile Alerts System (CMAS) used for emergency alerting via cell broadcast technology. The company's fully integrated, end-to-end messaging solutions support standard protocols and architectures including XML, SOAP, SSO, SIGTRAN, SS7, Diameter, SIP, and IMS.

About TeleCommunication Systems, Inc.

TeleCommunication Systems, Inc. (TCS) (NASDAQ: TSYS) engineers and delivers highly reliable wireless communications technology. TCS is a leader in wireless text messaging and location-based technology, including E9-1-1 services and commercial applications like navigation that use the precise location of a wireless device, and secure satellite-based communications systems and services. Customers include leading wireless and VoIP carriers around the world, cable MSOs, automotive telematics vendors, and agencies of the U.S. Departments of Defense, State, and Homeland Security. TCS is one of six primary vendors on a $5 billion Army Worldwide Satellite Systems Contract vehicle. 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 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 September 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.

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