TCS Adds Privacy Center Feature to Xypoint Location Platform; New Technology Helps Wireless Carriers Protect Subscriber Location.

Business/High-Tech Editors

ANNAPOLIS, Md.--(BUSINESS WIRE)--March 20, 2001

TeleCommunication Systems, Inc. (TCS) (Nasdaq:TSYS), a key architect of wireless messaging software, announces it is adding a Privacy Center feature to its Xypoint Location Platform.

The Privacy Center helps wireless carriers protect location and presence data while enabling them to offer their customers the ability to manage how that data is used. The Privacy Center is designed to help carriers meet the guidelines set forth by the Cellular Telecommunications Industry Association (CTIA) and specifications being developed by a number of wireless industry groups.

This new technology lets subscribers establish profiles that enable them to manage what companies can and cannot see and use with respect to their location and presence information. For example: subscribers will be able to establish a profile that indicates that only a specific roadside assistance company can locate them. To protect the security of location and presence data, TCS's Privacy Center authenticates every transaction to ensure that location information is only going to customer-approved companies.

"By adding the Privacy Center to the Xypoint Location Platform, we are trying to help wireless carriers meet the needs of their customers while enhancing mobile services, such as roadside assistance, with location information," said Ken Arneson, senior vice president and chief strategy officer of TCS. "Privacy is a central issue to the growth of the location and presence services market and it is important that we are proactive in establishing both the policies and the technology to ensure that it is handled appropriately."

The Privacy Center supports Global On/Off and Application On/Off features. The Global On/Off feature empowers mobile subscribers to disallow all applications from knowing the mobile handset's location or presence. With the Application On/Off feature, subscribers can allow specific companies or applications to obtain location and presence data. With these features, the Privacy Center establishes a permission-based system for the use of location and presence information. The Privacy Center provides a web and voice interface that subscribers can use to establish their profile, ensuring that anyone, regardless of the phone model being used, can protect their privacy while using location and presence services.

Through the Privacy Center, carriers will have tools to help them meet the CTIA recommendations. As a part of the recommendation, companies must inform subscribers of location practices and receive subscriber consent prior to using their location information. Additionally, the guidelines call for data security and integrity provisions and that subscribers have access to their information through a technology-neutral interface, ensuring that everyone with a cellular phone can participate.

The TCS Privacy Center is also designed to meet the forthcoming specifications of the Presence and Availability Management Forum (PAM), the Location Interoperability Forum (LIF) and the WAP Forum.

Future versions of the Privacy Manager will include advanced encryption and security features and additional subscriber filters. New filters would allow subscribers to set filters by time or location accuracy. For example: a subscriber that uses a cell phone for work could set filters to allow the employer to know her location during the hours of 9 and 5, but not outside that window. Accuracy filters would let subscribers define how close a service can pinpoint their location, be it within a zip code, a half-mile, or a block.

About TeleCommunication Systems, Inc.

TCS is evolving wireless technology. As the key architect of 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 the preferred technology provider to carriers worldwide including Vodafone, Verizon Wireless and Telefonica. Through its solutions group, TCS develops advanced applications that will continue to evolve the face of wireless messaging. Visit the web site at www.telecomsys.com.

For further information on TCS's Xypoint location platform, visit www.xypoint.com. Editors interested in testing TCS text messaging services, please visit www.webwirelessnow.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 the Company's 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 outlined in the Company's filings with the Securities and Exchange Commission (SEC). In particular, there are risks and uncertainties relating to the ability of the Company to (i) focus its business on network application software products and related services (ii) continue to rely on third parties to market and sell the Company's applications and for other relevant support, (iii) adapt and integrate new technology into its products, (iv) expand its business offerings in the new wireless data industry, (v) capitalize on opportunities in the marketplace, and (vi) 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.