SOURCE: TeleCommunication Systems, Inc.

September 21, 2007 08:02 ET

TCS Receives Contract From U.S. Army 1st Cavalry Division for Satellite Communications Terminals

ANNAPOLIS, MD--(Marketwire - September 21, 2007) - TeleCommunication Systems, Inc. (TCS) (NASDAQ: TSYS), today announced it has been awarded a contract by the U.S. Army Communications-Electronics Lifecycle Management Command contracting authority at Ft. Monmouth, N.J., valued at $2.4 million for satellite communications terminals and maintenance that will be used in support of the U.S. 1st Cavalry Division. This requirement for equipment to support U.S. 1st Cavalry Division is part of a 3-year order under an indefinite delivery/indefinite quantity contract, with a potential total order value of more than $29 million, if all options are exercised. The initial order is to be completed in September 2007, followed by 24 months of logistical support.

U.S. 1st Cavalry Division is acquiring TCS SwiftLink® Very Small Aperture Terminals (VSATs) under contract with the Army Project Manager for the Warfighter Information Network-Tactical (PM WIN-T) Commercial Satellite Terminal Program (CSTP) and 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. The TCS SwiftLink VSAT terminals will provide multimedia communications capabilities to convey encrypted voice, video and imagery data.

"The contract exemplifies TCS' strength in delivering reliable, rapidly deployable communications products in support of U.S. military missions," stated Mike Bristol, Senior Vice President for the TCS Government Solutions Group. "TCS SwiftLink VSAT terminals are used worldwide for on-the-move communications solutions. Real-time, high-speed, secure information exchange is crucial to America's ongoing efforts to provide disaster relief at home and abroad. Military actions and terrorism threats require high-speed, encrypted information exchange. The TCS SwiftLink product suite is especially qualified and proven to deliver on these demands."

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 without limitation the prospect that the value of this order could reach $29 million over three years, the expectation that the first eleven systems will be delivered by the end of September 2007, and those risk factors detailed from time to time in the Company's SEC reports, including the reports on Forms 10-K for the year ended December 31, 2006, and 10-Q for the quarter ended June 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.

Contact Information