TCS Awarded Wireless Patent for Optimizing SMS Delivery; Network Intelligence Determines Presence and Availability of Devices to Receive Messages.

ANNAPOLIS, Md. -- TeleCommunication Systems, Inc. (TCS) (NASDAQ:TSYS), a global leader in wireless data technology, today announced that the U.S. Patent and Trademark Office has issued patent number 6,839,562 titled, "Intelligent Delivery Agent for Short Message Distribution Center" on January 4, 2005. This patent was the first to be issued to the company in 2005. TCS currently holds 29 patents and has over 70 additional patent applications pending in the United States and jurisdictions throughout the world.

The patent's technology provides carriers with a cost-effective method to manage subscribers' messages. This technique determines whether a subscriber can receive a message, implements the means to hold messages that are not currently deliverable, and then sends them when the subscriber's handset becomes available. This prevents the carriers' Short Message Service Centers (SMSCs) from becoming overburdened.

"TCS continues to expand our base of wireless technology patents to provide the most advanced infrastructure requirements and additional revenue channels for our carrier customers and true value to their subscribers," said Maurice B. Tose, Chairman, President and CEO of TeleCommunication Systems. "As text messaging continues to become more popular, it is essential that carriers have the ability to determine when messages can be delivered and manage messages that cannot be delivered as a means to free up SMSC storage and capacity."

The Intelligent Delivery Agent for Short Message Distribution Center is a tool to be used to assist carriers in effectively managing messages, especially those messages originated from content providers. Wireless carriers generate revenue each time a message is sent from and received on a wireless handset. Messages which cannot be delivered have the potential to create a backlog on the network and increase the possibility that deliverable messages will be delayed. The delays may be caused due to message capacity issues associated with the SMSC, as it continues to hold still undeliverable messages in queue for later delivery.

Content providers deliver messages to subscribers which have opted-in to receive specific messages, such as weather or sports updates. Subscribers expect their carriers to deliver these subscriber-requested messages in a timely manner. Carriers need to keep their SMSC delivery channels open. Content providers can use the presence information described by the patent regarding when a mobile subscriber's handset is on and ready to receive messages. As an additional benefit, carriers can use the methods described in the patent to screen and eliminate messages targeted at subscribers who have churned from their network. Subscribers often opt-in to messages from content sources that are external to the carrier's managed content providers. When a subscriber churns, the carrier has no way of disabling these messages, even though the subscriber is no longer available to receive them. These messages would normally sit on the carrier's SMSC and, in some cases, would continue to take up network bandwidth as the SMSC periodically retries delivery. The Intelligent Delivery Agent for Short Message Distribution Center fulfills these fundamental requirements.

ABOUT TELECOMMUNICATION SYSTEMS, INC.

TeleCommunication Systems, Inc. is a leading provider of mission critical wireless data solutions to carriers, enterprise and government customers. TCS' wireless data offerings range from providing location-based Enhanced 9-1-1 services in the U.S. and messaging infrastructure to wireless operators, real-time market data and alerts to financial institutions, mobile asset management and mobile office solutions for enterprises, and encrypted satellite communications to government customers. 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 the risks and uncertainties relating to the company's future financial results and ability of the Company to (i) reach and sustain profitability 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, (vii) implement its sales and marketing strategies, and (viii) deploy its software and services quickly.

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.