TCS Named Sole Awardee of U.S. Army Contract for up to $246 Million of Deployable Satellite Solutions

ANNAPOLIS, MD, Aug 05 (MARKET WIRE) --
TeleCommunication Systems, Inc. (TCS) (NASDAQ: TSYS), a leading provider
of mission-critical wireless communications, was named the sole awardee
of an indefinite delivery/indefinite quantity delivery order with a
potential value of $246 million over the next 39 months.

Awarded under the TCS World-Wide Satellite Systems (WWSS) contract
vehicle, the delivery order is with the U.S. Army
Communications-Electronics Life Cycle Management Command (CECOM LCMC) to
support its need for rapidly deployable and highly secure satellite
communication access to broadband satellite services. TCS will deliver a
full range of deployable satellite solutions based upon the company's
highly reliable SwiftLink(R) deployable communications product line. The
Secure Internet Protocol Router (SIPR) and Non-secure Internet Protocol
Router (NIPR) Access Point (SNAP) Very Small Aperture Terminal (VSAT)
Satellite Systems Program is a follow on to the Military Transition Team
(MiTT) VSAT Program awarded to TCS last year.

TCS has received its first SNAP incremental funding of $2.6 million for
systems, maintenance and other services. TCS anticipates additional
funding on the order soon that would be valued between $25 million and
$30 million for systems, additional logistics and operational support,
with the majority of this increment targeted for delivery in calendar
2008. These systems are slated for the MiTT Teams engaged in the on-going
Contingency (Operation Iraqi Freedom) under Multi-National Coalition --
Iraq (MNC-I). The remainder of the delivery order will be used to support
other U.S. Army and Department of Defense users requiring secure voice
and data communications in a modular, highly transportable form factor.

The entire order includes options for up to 1,500+ terminals and
supporting equipment to be deployed in various sizes and configurations
over the next few years, along with up to 30 field support personnel. The
company's 2007 investments in capacity for integration, testing, and
deployment of its SwiftLink and wireless point-to-point deliverables
assures timely delivery on large volume orders that meets customer
expectations.

The SNAP VSAT program will be managed by the Army Project Manager for the
Warfighter Information Network-Tactical (PM WIN-T) Commercial Satellite
Terminal Program (CSTP) through the $5 billion World-Wide Satellite
Systems (WWSS) contract vehicle, which is available to support all federal
communication missions, including disaster relief and homeland security
efforts.

"This delivery order represents another major step toward establishing
better revenue visibility for TCS," stated Maurice B. Tose, president,
chairman, and CEO of TCS. "In the first quarter, our funded and unfunded
backlog totaled about $225 million, which was double that of the previous
year. With this award, total backlog now approximates $450 million."

"This very important piece of business also represents the largest TCS
delivery order to date," said Tose, "and is a testament to our proven
ability to deliver successful deployable satellite solutions in support of
highly versatile and mobile U.S. military missions. The size and scope of
this delivery order demonstrates the trust TCS has earned in supporting
the unique needs of the US Army Warfighter."

TCS has established a proven track record over the past decade of
providing highly specialized solutions to the Department of Defense,
Special Operations and Intelligence Communities, the Department of
Homeland Security and the Department of State. The TCS SwiftLink product
line meets the critical communications demands of this elite customer
set, no matter where or how they deploy.

"The U.S. Army is now acquiring TCS SwiftLink VSAT systems and support
services Army-wide via this delivery order," stated Michael Bristol,
senior vice president of government solutions for TCS. "This delivery
order award, coupled with the company's performance on current U.S. Army
and Marine Corps programs, confirms our ability to successfully compete
on large multi-faceted opportunities. In the first 22 months of the WWSS
contract, TCS leads the six prime-contracting competitors in quantity of
delivery orders won. We are now positioned second in terms of total
measured contract award value, since this latest contract brings us to
more than $350 million of delivery order awards. This was a hotly
contested program and an important win to set that stage for other large
SATCOM procurements that are in motion. We appreciate the contribution
and commitment of our partners, who joined us to build this winning team."

The TCS SwiftLink VSAT systems used to fulfill SNAP program requirements
will provide multimedia communications capabilities which convey encrypted
voice, video and imagery data. TCS SwiftLink products are highly
transportable and ruggedized, with a graphical user interface that
facilitates easy set-up and operation. The modularity and "plug and play"
interfaces between all RF and Baseband configurations inherent in the
SwiftLink product line result in communication solutions tailored to the
end-user's specific needs. The initially funded systems will be delivered
in early August 2008, followed by 36 months of logistical support.

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 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
possibility that the delivery order will not be fully funded, the
possibility that equipment will not be delivered on time, the prospect
that this order may be the foundation for additional large project wins,
the possibility that large-scale production requirements could impair our
ability to deliver, the impression that all CENTCOM VSAT terminals will
be purchased under this delivery order, 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, 2007 and Form 10-Q for the quarter ended June
30, 2008.

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.

Copyright 2008, Market Wire, All rights reserved.

-0-