City of Baltimore Extends Contract with TCS to Provide Network Services and Support.

Business Editors

ANNAPOLIS, Md.--(BUSINESS WIRE)--Sept. 12, 2002

TeleCommunication Systems, Inc. (TCS) (Nasdaq:TSYS), a global leader in location and messaging software and E9-1-1 services for wireless carriers, and an expert in highly reliable and secure communications systems for government customers, today announced a one-year extension of the Network and Systems Support contract by the City of Baltimore Board of Estimates.

The contract, valued at approximately $4 million, is an extension of a September 1998 engagement for TCS to support the City of Baltimore in implementing its Strategic Information Technology Plan for complex network systems integration, while maintaining its current high standards for operational capability and performance. With the Network System Support contract, TCS supports the city in building an integrated, centralized, fully interoperable architecture that enhances system response, decreases maintenance costs and reduces employees training time for the City of Baltimore.

The contract is under the direction of the Mayor's Office of Information Technology, which provides network support and services throughout City government, including such key departments as the Mayor's Office of Information Technology, Finance, Public Works, Police and Health.

"With information technology becoming an ever-increasing focus for the City of Baltimore, TCS continues to professionally respond to the demands for timely and accurate technology-related support to local government, enterprise partners and, ultimately, the constituents," said Elliot Schlanger, Chief Information Officer for the Mayor's Office of Information Technology. "As we enter into the contract's fifth year, the partnership continues to grow stronger."

Specific TCS projects under the contract include: network assessment and design; installation and management of Local Area Networks (LAN), Wide Area Networks (WAN), and Metropolitan Area Networks (MAN); desktop hardware/software installation and integration; system consultation services; Java/Oracle and legacy database design and support; and PC software training.

About Telecommunication Systems, Inc.

TeleCommunication Systems, Inc. (TCS)(Nasdaq:TSYS) is a leading provider of software and solutions to wireless telecommunication carriers and to government customers requiring high reliability and security. The company's Network Applications segment is a global leader in wireless location-enhanced messaging, including E9-1-1 service to the largest US wireless carriers. The Solutions segment enables rapid deployment of fixed and transportable communications systems using wireless, satellite, and terrestrial networks. TCS is a technology provider to leading wireless carriers worldwide including Verizon Wireless, Vodafone, Cingular, Hutchison 3G and Telefonica as well as federal, state, local, and international government customers.

TCS makes connections that matter. Whether connecting people with voice, data or video in a wireless world or connecting our customers and shareholders with long-term value, TCS delivers competitive, reliable and secure products, services and solutions to meet these needs. For more information visit 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 without limitation risks and uncertainties relating to the Company's financial results and the ability of the Company to (i) reach profitability as early as anticipated, (ii) continue to rely on its customers and other third parties to provide additional products and services that create a demand 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 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.