SOURCE: TeleCommunications Systems, Inc.

July 20, 2006 09:17 ET

U.S. Navy Selects TCS for SATCOM Terminal Program

TCS to Provide Tactical Equipment for SPAWAR Requirements Under Five-Year $53 Million Program

ANNAPOLIS, MD -- (MARKET WIRE) -- July 20, 2006 -- TeleCommunication Systems, Inc. (TCS) (NASDAQ: TSYS), a leading provider of mission-critical wireless communications, today announced it has been notified by Space and Naval Warfare (SPAWAR) Systems Center in North Charleston, SC, that it has been selected as one of eight vendors to provide satellite communications products under a five-year program. The program objective is to increase the effectiveness of communications for United States and coalition forces. The contract includes a one-year base and four one-year option periods, making the total potential period of performance five years. When combined, the aggregate value of all delivery orders awarded over the life of the eight contracts will be approximately $52,600,000. Shipments under the program are currently expected to begin during the fourth quarter of 2006.

The U.S. Navy program provides interoperable satellite communications systems and services to increase the effectiveness of communications between U.S. and coalition military units operating within a single theater-of-operations. The program awardees will supply U.S. military and coalition forces with tactical satellite communications (SATCOM) terminals. Specifically, TCS will provide 1-meter and 1.2-meter terminals and satellite simulator equipment.

Already embedded with SwiftLink® DVM-90 and DVM-120 series flyaway Very Small Aperture Terminal (VSAT) installations in U.S. military and emergency services, TCS will lend its same expertise in military applications to SPAWAR.

"This contract award deepens TCS' support of SPAWAR and its mission within the U.S. Navy," said Michael Bristol, Vice President of the Network Solutions Group for TCS. "TCS has been a supplier of specialized communications to SPAWAR since 2001 when we started providing systems for the U.S. Special Forces. Since that time, TCS has supplied numerous NSA Type 1 encryptor-equipped communications terminals to SPAWAR. This SPAWAR portable SATCOM program award will once again give TCS the opportunity to showcase our capability to meet the mission requirements of our military customers."

ABOUT TELECOMMUNICATION SYSTEMS, INC.

TeleCommunication Systems, Inc. (TCS) 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 VSAT 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 the U.S. Departments of Defense, State, and Homeland Security. For more information about TCS, visit www.telecomsys.com. For additional contract details visit: http://www.dod.mil/contracts/2006/ct20060718-13469.html

This announcement contains forward-looking statements within the meaning of 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 are subject to a number of risks and uncertainties that would cause actual results to differ materially from those anticipated. Specific statements in this announcement that are forward-looking include but are not limited to the statement that shipments are expected to begin in 2006.

The actual results realized by the Company could differ materially from the statements made herein, depending in particular upon the risks and uncertainties described in the Company's filings with the Securities and Exchange Commission (SEC). These include without limitation risks and uncertainties relating to the Company's financial results and the ability of the Company to (i) reach and sustain profitability when anticipated, (ii) continue to rely on its customers and other third parties to provide additional products and services that create a demand for its products and services, (iii) conduct its business in foreign countries, (iv) adapt and integrate new technologies into its products, (v) expand its business offerings in the new wireless data industry, (vi) develop software and provide services without any errors or defects, (vii) protect its intellectual property rights, and (viii) implement its sales and marketing strategy.

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.