TCS Gateway Guards against Mobile Spam; Upgraded Wireless Internet Gateway Empowers Both Carriers and Subscribers to Control and Eliminate Mobile Spam.

Business Editors/High-Tech Writers

CTIA Wireless IT and Entertainment 2003

ANNAPOLIS, Md.--(BUSINESS WIRE)--Oct. 21, 2003

Today at CTIA-IT in Las Vegas, Nevada, TeleCommunication Systems, Inc. (TCS) (NASDAQ:TSYS), announced the latest release of its Wireless Internet Gateway(TM) (WIG) incorporating advanced anti-spam technology to help wireless carriers protect their customers from the growing instances of mobile spam. TCS is a leading provider of software and solutions to wireless telecommunication carriers worldwide and to government customers requiring high reliability and security.

Types of mobile spam targeted by TCS' WIG 4.1 include network spam, which involves multiple messages sent to solicit/harass an operator's subscribers or to negatively impact the operator's network, and mobile user spam, an unwanted and unsolicited message received on a mobile handset. Mobile scam, a subset of mobile user spam, is a message that encourages the receiver to place a premium voice or data call. In addition to protection from email sources of spam, TCS' anti-spam gateway applies the same filtering and blocking rules to all possible spam sources including web based traffic using hyper-text transfer protocol (http) and text messaging based on short message peer-to-peer protocol (smpp).

"Mobile spam should be confronted by wireless operators before there is a large problem. Otherwise, mobile spam could seriously derail efforts by wireless operators to increase messaging and data usage," said Scott A. Ellison, Program Director, Wireless & Mobile Communications, IDC. To address the increasing problem, TCS has released version 4.1 of its Wireless Internet Gateway (WIG), which includes a comprehensive set of anti-spam capabilities that provide carriers with the ability to prevent spam messages from being sent to mobile subscribers.

In a recent research report, Silicon.com found that 69% of mobile users receive spam on their mobile phones. In addition, the Advertising Standards Authority indicates that complaints about Short Message Service (SMS) spam have risen six-fold in the past year. Mobile spam is much more than an inconvenience; there are financial repercussions in infrastructure and productivity costs. Technical problems stem from limited storage capacity both on the mobile phone itself and in the carrier's network and the need to handle a large numbers of calls to customer support. Customer issues caused by mobile spam include churn, privacy infringement and potential exposure of adult content to children.

"TCS' objective with our most recent Wireless Internet Gateway, incorporating the added spam defense system, was to stay one step ahead of the spammers - while offering control to both the carrier and subscribers," said Tim Lorello, Chief Marketing Officer for TCS. "Wireless carriers can limit the ability of particular sources to send messages to its subscribers, while individual end-users can choose which messages to accept and which messages to block. This strategy allows us to create an environment that is reliable, flexible and affordable."

ABOUT TCS WIRELESS INTERNET GATEWAY 4.1 WITH MOBILE SPAM FILTER 

The highly scalable TCS Wireless Internet Gateway provides carriers with a single location for communication between wireless devices and Internet Protocol (IP) services, such as email, content services, and other IP-based solutions. These features combined with customized web pages, provide carriers and their subscribers with enhanced value-added solutions, service differentiation, and increased revenue. The Wireless Internet Gateway is compatible with the majority of Short Message Service Centers (SMSCs) in use today. As a gateway between the Internet and the SMSC, the TCS WIG plays a strategic role in providing carriers with the tools needed in the emerging battle against spam. TCS' WIGs deployed in 51 installations with wireless carriers around the globe serving 65 million are subscribers.

ABOUT TELECOMMUNICATION SYSTEMS, INC.

TeleCommunication Systems, Inc. (TCS) (NASDAQ:TSYS) is a leading provider of software and solutions to wireless telecommunication carriers worldwide and to government customers requiring high reliability and security. The company's Network Software segment is a global leader in wireless location platforms, text messaging, and alerts. The Service Bureau segment provides enhanced 9-1-1 connections to public safety call centers for the largest US wireless carriers, as well as hosted wireless text messaging services. The Solutions segment enables rapid deployment of fixed and transportable communications systems using wireless, satellite, and terrestrial networks.

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 and provide services 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.