SOURCE: TeleCommunication Systems, Inc.

January 31, 2008 08:30 ET

TCS Reports $12 Million in First Half 2008 for Text Messaging Software Orders

Wireless Carriers Tap TCS to Deliver Messaging Capacity and Features to Meet Ever-Increasing Customer Demand

ANNAPOLIS, MD--(Marketwire - January 31, 2008) - TeleCommunication Systems, Inc. (TCS) (NASDAQ: TSYS), a leading provider of mission-critical wireless communications, today announced that the company has received orders for approximately $12 million in messaging software and related systems for delivery to leading carriers in the first half of 2008. This compares to an average of about $4 million per quarter in 2007.

These early year orders result from the record growth in consumer wireless messaging usage nationwide, which is compelling carriers to increase their wireless messaging capacity. TCS provides software to U.S. wireless carriers for Short Message Service (SMS), also known as text messaging, and earns revenue from perpetual licenses, customization, feature enhancements and software maintenance. TCS SMS systems include its Short Message Service Center (SMSC) platform and related Wireless Intelligent Gateway (WIG), which has both messaging and Location-Based services (LBS) functions. As reported in mid-2007, TCS entered into a six-quarter arrangement with a major carrier customer for SMSC license capacity, and these orders include first half 2008 requirements under that arrangement. Most of the $12 million of orders are for delivery in the first quarter of 2008.

In 2007, TCS technology was responsible for about 25 percent to 30 percent of the more than 300 billion text messages sent across the United States, as estimated by CTIA. SMS has evolved into a multifaceted application that continues to expand the revenue possibilities for network operators and carriers. TCS messaging solutions bring carriers new sources of revenue, enable intercarrier messaging and keep carriers in control of their networks and customers, particularly during significant spikes in wireless traffic.

Industry experts estimate that text messaging grew more than 130 percent between 2006 and 2007. TCS expects similar growth in 2008 and 2009. This growth is fueled by intercarrier messaging, televoting and unlimited in-network text messaging plans. Looking ahead, text messaging usage is expected to continue to grow as a reliable, easy-to-use transport for new services such as mobile payment, mobile banking, location-based mobile search and ad-sponsored content.

"Consumers' appetite for text messaging continues to increase as evidenced by sustained year-over-year doubling of traffic," said Maurice B. Tosé, Chairman, President and CEO of TCS. "TCS is one of the few companies in the world that holds multiple messaging and location patents, has a product portfolio that can meet any carrier's requirements for upgrade and expansion, and provides these solutions on both a hosted and in-network basis. TCS solutions empower carriers to allow their customers to stay connected anytime, anywhere."

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, engineered satellite-based services, and commercial location applications, like traffic and navigation, using the precise location of a wireless device. Customers include leading wireless, cable MSOs, and VoIP carriers around the world, and agencies of the U.S. Departments of Defense, State, and Homeland Security. 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 the possibility that text messaging usage will not continue to grow, that customer orders could be cancelled, that current carrier customers could opt to provide text messaging capabilities in a different manner or from competing sources, and those risks 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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