SOURCE: TeleCommunication Systems, Inc.

TeleCommunication Systems, Inc.

August 05, 2009 07:00 ET

TeleCommunication Systems First Half 2009 Text Messaging Volume Surpasses Entire 2008 Total, Continuing TCS Market Leadership - 292 Billion Messages Processed YTD

Analysts Name TCS as Third Largest Global Short Message Service Center Vendor and Second Largest Global Location Infrastructure Provider

ANNAPOLIS, MD--(Marketwire - August 5, 2009) - TeleCommunication Systems, Inc. (TCS) (NASDAQ: TSYS), a leading provider of mission-critical wireless communications, today announced that systems operated by carriers using TCS software have processed over 292 billion Short Message Service (SMS) messages in the first half of 2009, exceeding the total processed in 2008. These numbers illustrate explosive market growth; they do not include SMS message volume for the peak messaging holidays still to come this year such as Thanksgiving, Christmas and New Year's Eve.

Leading research and consulting firm Frost & Sullivan cites TCS as the world's third largest Short Message Service Center (SMSC) vendor in a report published in July. The report forecasts that SMS messaging in the United States is expected to grow six-fold over the next six years, from one trillion messages in 2008 to over six trillion messages in 2014.

"SMS messaging in the United States continues to grow at astonishing rates and should continue at a rapid pace for the next five to six years," states Brent Iadarola, global research director for Mobile and Wireless Communications at Frost & Sullivan. "Person-to-Person SMS traffic continues to accelerate as newer and younger wireless users text with much greater frequency than the average subscriber. Application-to-Person SMS messaging is also seeing a large increase in the form of alerts, promotions, enterprise messaging and social networking messages."

Informa Telecoms and Media recently ranked TCS as the second largest location infrastructure vendor globally in terms of total carrier deployments. Jamie Moss, Senior Research Analyst at Informa, stated that "Mobile operators will need to deploy solutions to support precise location services, a development spurred on by the increasing availability of A-GPS-enabled devices on a global basis. Revenues for LBS infrastructure and application vendors stand to grow substantially over the next five years as the need to process high accuracy location requests grows, courtesy of the marked improvement in LBS functionality that precise location calculation brings. Vendors like TCS, who already have a high profile and who offer an end-to-end solution, are well positioned to benefit from this."

"As a leading architect of wireless messaging and location technology, it is a significant accomplishment to be recognized in reports from two different research firms validating our success and market position within our core competencies of messaging and location-based services," said Timothy Lorello, TCS senior vice president and chief marketing officer. "Not only are we able to provide consumers with the platform necessary for seamless text messaging, but we also offer carriers complete solutions that translate into new and growing sources of revenue from their wireless infrastructure investment. We look forward to continuing the push for innovation in this space."

TCS is a trusted partner to many top tier wireless communications carriers, supplying comprehensive messaging, location, and enhanced 9-1-1 solutions. The company's messaging products serve as the engines for text messaging demands. TCS' location-based products and applications can be found on five continents around the globe, providing applications to wireless carrier subscribers including navigation, social networking and emergency services.

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 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 global market for text messaging and location based services will not grow as studies predict or at all, the possibility that we do not maintain our current market position, 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, 2008, and quarter ended June 30, 2009.

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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