TCS Recieves Frost & Sullivan Strategic Acquisition Award for Aether Enterprise Transaction; TCS Receives 2004 Award.

Business Editors

ANNAPOLIS, Md.--(BUSINESS WIRE)--March 23, 2004

TeleCommunication Systems, Inc. (TCS) (NASDAQ:TSYS), a global leader in wireless data technology has received the Frost & Sullivan 2004 Award for Strategic Acquisition. This award is presented each year to the company that has demonstrated excellence in mergers and acquisitions within the Mobile Communications Market.

Frost & Sullivan selected TCS for its acquisition of the Enterprise Mobility Solutions (EMS) division of Aether Systems, Inc. This acquisition accelerates the ability of carriers to deploy integrated mobile messaging and location products to enterprise customers. Aether EMS brings to TCS the Aether Fusion platform, an impressive base of customers, and leading applications for logistics, financial services, and the mobile office. Key product offerings acquired by TCS include: Aether Fusion(TM), 20/20 Delivery(TM) and a range of mobile office applications.

TeleCommunication Systems, Inc has excelled based on one or more of the following criteria:

-- Improved product line availability

-- Increased client base

-- Increased market share

-- New product value-added services provided to customers

"TCS' enterprise strategy has been executed at the optimal time with the ideal partner," said Brent Iadarola, Industry Analyst for Frost & Sullivan. "TCS has taken a leadership position with mobile enterprise applications and is positioning itself to become the first data Mobile Virtual Network Operator (MVNO) in North America."

Recipients of the Frost & Sullivan Award for Strategic Acquisition are companies that have exhibited an excellent knowledge of the competitive market position. TCS has demonstrated its ability to seek out compatible potential partners and create synergy by integrating the assets and operations of the combined companies. The award is given based on the achievement of improved corporate performance after the merger/acquisition.

"TCS is honored to receive a Frost & Sullivan Award again in 2004. TCS' vision has always been to bridge the carrier-enterprise divide through integrated wireless data offerings," said Maurice B. Tose, Chairman, President and CEO for TCS. "Together, we are the only company to offer wireless data and location-based solutions incorporating platform technologies for carriers, enterprise, and government. Wireless carriers that already rely on TCS for messaging and location products may now work with us to generate revenue from enterprise-focused solutions as we migrate enterprises to the carriers' high-speed data networks."

In 2003, TCS received the Frost & Sullivan 2003 Mobile Location Platform Award for its Xypoint(R) Location Platform (XLP).

An example of the immediate enterprise synergies achieved by the TCS acquisition is the announcement that users of BlackBerry(TM) handhelds have a new way to stay informed about the financial world via the latest TCS Enterprise Division marketStream(TM) service. The marketStream(TM) service provides global, real-time streaming access to equity security prices and volume, foreign exchange rates, futures, commodities and fixed income prices, as well as news and charts via any Java-based BlackBerry(R) handheld. The marketStream(TM) service was developed by TCS' European subsidiary, Aether Systems, Ltd. Totally wireless and with global coverage, marketStream(TM) utilizes Global Packet Radio Service (GPRS) and third generation networks to stream market data to any Java-enabled mobile device, on any network in any institution.

ABOUT FROST & SULLIVAN

Founded in 1961, Frost & Sullivan is recognized as a global leader in growth consulting. Frost & Sullivan presents its awards to companies that demonstrate excellence in their industry, commending the diligence, commitment, and innovative business strategies required to advance in the global marketplace. Frost & Sullivan rigorously analyzes specific criteria to determine Award recipients in a vast variety of market industries and landscapes. For further information, visit www.frost.com.

ABOUT TELECOMMUNICATION SYSTEMS, INC.

TeleCommunication Systems, Inc. (TCS) (NASDAQ:TSYS) is a leading provider of mission critical wireless data solutions to carriers, enterprise and government customers. TCS' wireless data offerings provide location-based Enhanced 9-1-1 services 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 United States Securities Act of 1933, as amended, and Section 21E of the U.S. 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 U.S. 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. Mr. Tose's comment that wireless carriers may now work with us to generate revenue from enterprise-focused solutions is an example of a forward-looking statement.

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.