Alpine PCS to License TCS Prepaid Solution.

Business/High Tech Editors

ANNAPOLIS, Md.--(BUSINESS WIRE)--Oct. 24, 2001

TeleCommunication Systems, Inc. (TCS) (Nasdaq:TSYS), a key architect of wireless carrier services software, announced today that Alpine PCS has selected the TCS PreferPay(TM) prepaid billing solution to launch new services in California.

PreferPay enables Alpine to offer subscribers seamless roaming, zone-based rating plans and account balance notification via Short Message Service (SMS).

The TCS PreferPay solution targeted at wireless carriers is an Intelligent Network (IN) application for carriers wanting to offer next-generation prepaid services to niche markets such as the lucrative youth market. A customer-owned solution, PreferPay gives carriers flexibility, control and advanced features not available in service bureau applications. As wireless services gain popularity among the U.S. youth, it will be increasingly important for carriers to make it easier for teens, who cannot sign a contract or do not have a credit history, to purchase the latest wireless services.

"We believe PreferPay will help us acquire and retain a large subscriber base that is asking for innovative prepaid and messaging services," said Mark Savage, director of Alpine PCS. "TCS offered us all the features we needed to be competitive without the extra costs of competing service bureau solutions.

PreferPay is a state-of-the-art prepaid platform that meets the needs of regional wireless carriers. It supports multiple air interfaces, real-time rating, graphical rate plan creation tool, balance delivery via SMS, other party pays, and zone-based rating plans. PreferPay is scalable and built upon a highly reliable hardware architecture that offers substantial cost-savings over adjunct switch architectures.

"The zone-based rating and loyalty features of our product were highly desired by Alpine PCS," said Joe Pohutsky, TCS director of wireless voice. "These flexible features are designed to give carriers a competitive edge when their marketing plans call for targeting specific demographic or geographically located consumers like college campuses."

ABOUT ALPINE PCS

Headquartered in Santa Barbara, CA, Alpine PCS holds PCS licenses covering 4.2 million pops in California, Michigan, and Massachusetts. The company already provides digital PCS coverage in portions of its Michigan licenses and intends to launch commercial service in 2002 in its California markets.

About TeleCommunication Systems, Inc.

TCS is evolving wireless technology. As the key architect of network intelligence-based wireless messaging and location technology, TCS is delivering essential software, services and solutions to carriers that enable people to better manage their mobile lifestyle. TCS occupies a privileged position within the core of the wireless carrier network enabling it to develop technology that ensures the security, reliability and privacy of people's wireless messages.

Today, TCS is a preferred technology provider to carriers worldwide including Vodafone, Verizon Wireless, VoiceStream, Telefonica and Qwest. Through its Solutions group, TCS deploys advanced technologies and products that promote the continued evolution of wireless services. Visit the web site at www.telecomsys.com.

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.

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 the risks and uncertainties relating to the Company's future financial results and the ability of the Company to (i) reach profitability as early as anticipated (ii) continue to rely on third parties to market and sell the Company's products and for other relevant support, (iii) adapt and integrate new technologies into its products, (iv) expand its business offerings in the new wireless data industry, (v) capitalize on opportunities in the marketplace, (vi) develop software without any errors or defects, and (vii) implement its sales and marketing strategies.

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.