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U.S. Marine Corps Funds Additional $7 Million Contract for TCS Wireless Point-to-Point Link Systems

September 3, 2008

TeleCommunication Systems, Inc. (TCS) (NASDAQ: TSYS), a leading provider of mission-critical wireless communications, today announced that it has received additional contract funding in the amount of $6.9 million from the U.S. Marine Corps for 43 Wireless Point-to-Point Link (WPPL) systems for deployed troops overseas. This funding increases the total of deployed WPPL systems to 73. TCS expects further follow-on funding within several weeks for another 113 systems. The TCS WPPL systems provide deployed Marines with point-to-point and point-to-multipoint secure transmission of voice, video and data communications over terrestrial microwave radio links.

This latest contract brings the total value of TCS WPPL systems purchased by the U.S. Marine Corps under the 2007 World-Wide Satellite Systems contract to $14.3 million, with a potential total value of $71 million, including all option years through 2011.

“TCS has over 20 years of experience in providing wireless communications solutions to our government and has successfully supported numerous deployed Marine Corps units in Operation Enduring Freedom and Operation Iraqi Freedom,” said Michael Bristol, Senior Vice President, TCS Government Solutions Group. “We understand the unique communications needs of our forces, and WPPL is designed to withstand the adverse conditions of current military operational theaters while providing secure, uninterrupted transmission of information over long distances.”

Packaged in six easily transportable cases with a total weight of under 1,000 pounds, WPPL provides the end user with flexibility in determining the scope of Local Area Network (LAN) communications. From the WPPL hub station outward to fielded units, military-standard communications security (COMSEC) and transmission security (TRANSEC) capabilities ensure the security of data communications.

Key features of TCS WPPL include:

 --  Simultaneous point-to-point and point-to-multipoint capabilities --  User selectable dual frequency bands (4.4-5.0 GHz and 5.4-5.7 GHz) --  Flexible network topologies --  Interoperability with existing fielded data communication systems --  Support for voice (VoIP) and IP telephony, video (teleconferencing,     live or streaming), and data      

The TCS Government Solutions Group began as a systems integrator in 1987. Today, TCS provides engineering, management, and professional services to the public sector and is a leading provider of fixed and deployable communication solutions for government customers and mobile operators requiring high reliability and security, including the U.S. Army, U.S. Air Force, U.S. Navy, Unified Combatant Commands, U.S. Department of State, U.S. Department of Homeland Security, U.S. Secret Service, and various U.S. intelligence agencies.

For more information on TCS WPPL solutions, visit: http://www.telecomsys.com/government/TCS_Wireless_PPL_WPPL

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 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 possibility that the delivery order will not be fully funded as expected, or that funding will not be received as quickly as anticipated, 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, 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.

 Media Contacts: TeleCommunication Systems, Inc. Welz & Weisel Communications Meredith Allen 410-295-1865 MAllen@telecomsys.com  Evan Weisel 703-218-3555 evan@w2comm.com

SOURCE: TeleCommunication Systems, Inc.




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