SOURCE: TeleCommunication Systems, Inc.

May 25, 2007 09:56 ET

TCS Wins 5-Year General Services Administration Contract for Defense Telecommunications Service - Washington

TCS to Provide Array of Telecom, IT, Professional Services for Hundreds of DoD Agencies Within the National Capital Region

ANNAPOLIS, MD -- (MARKET WIRE) -- May 25, 2007 -- TeleCommunication Systems, Inc. (TCS) (NASDAQ: TSYS), a leading provider of mission-critical wireless data solutions, today announced the award of a new five-year contract to support Defense Telecommunications Service - Washington (DTS-W). This contract allows TCS to continue its 13-year relationship with DTS-W into the next decade. The contract includes enterprise support for information technology and telecommunications services for DTS-W and its 764 Department of Defense (DoD) customers within the National Capital Region (NCR). The contract has the potential to generate close to $4M in revenues to TCS in the first year.

TCS has been providing information technology and communications solutions to the U.S. government and commercial customers since the company was founded in 1987. TCS was selected due to its support in a broad scope of business lines, including a spectrum of IT services -- system development, application development, IT operations and maintenance, data warehousing, data backup and restore, wireless services, continuity of operations (COOP), voice engineering, call center and project management in support of the DTS-W mission and 170,000 DoD NCR customers.

"Our 13-year relationship with DTS-W is a case study in government-industry partnering -- it's truly a 'win-win,'" said Jay Icard, Vice President, Professional Services for TCS. "DTS-W's customer-centric mission has allowed TCS to deliver a variety of solutions and provide expertise in numerous areas such as Telecommunications Expense Management, COOP and wireless solutions. These focus areas are mission critical to DTS-W's customers, and we are confident in TCS' proven abilities to deliver prompt and reliable solutions to DTS-W for those customers."

TCS' support has enabled DTS-W to achieve significant cost savings through paperless workflow and system upgrades, mostly predicated on DTS-W's core telecom financial system -- Financials & Asset Management System (FAMS) -- which TCS designed, developed and maintains for DTS-W. A 600% return on investment was quantified by the Office of the Secretary of Defense documenting many of the achievements from TCS for DTS-W. In addition, in 2006, DTS-W was awarded the Virginia Senate Productivity and Quality Award (SPQA), stating the achievement DTS-W has made in customer service and cost effectiveness driven by the systems, processes and people from TCS that support DTS-W.

ABOUT DEFENSE TELECOMMUNICATIONS SERVICE - WASHINGTON

The Defense Telecommunications Service - Washington (DTS-W) acquires and administers cost-effective, responsive and flexible telecommunications services for the Department of Defense (DoD) within the National Capital Region. Voice services are offered to address specific customer needs.

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.

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 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 March 31, 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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