SOURCE: TeleCommunication Systems, Inc.

May 21, 2007 18:24 ET

TeleCommunication Systems Sells Last of Its Three Enterprise Business Units

ANNAPOLIS, MD -- (MARKET WIRE) -- May 21, 2007 -- TeleCommunication Systems, Inc. (TCS) (NASDAQ: TSYS), a global leader in mission-critical wireless communication technology, announced it has sold its Mobile Asset Management Division to a corporation formed by New Venture Partners, LLC, an investment firm with more than $700 million under management.

The Mobile Asset Management Division was the last of the TCS Enterprise Division business units. Acquired by TCS from Aether Systems in early 2004, the Enterprise Division units were classified as discontinued operations in the company's 2006 and 2007 financial statements. The other two units which comprised this division were sold in January, 2007.

The Mobile Asset Management Division delivers proprietary proof-of-delivery and asset tracking technology for logistics management customers using wireless hand-held devices. Major customers are leaders in the office products and health care delivery industries.

TCS's sale of the Mobile Asset management division will result in no material gain or loss relative to the book value of the net assets held for sale. The consideration which TCS received was primarily cash, as well as an equity interest in the new private company. The new company will continue to sell TCS's location-enabled dispatch and logistics management features under a license arrangement for TCS's Hosted Xypoint® Location Services and Xypoint Dynamic Data Server.


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 operators 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 based upon TCS' current expectations and assumptions that if incorrect would cause actual results to differ materially from those anticipated, and they are subject to risks and uncertainties including 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, 2006 and the report on Form 10-Q for the quarter ending 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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