TSI TelSys Announces US$1.9 Million Orders in Second Quarter, Including First Booking Under Technology Partner Program.

COLUMBIA, Md.--(BUSINESS WIRE)--July 14, 1999--

Montreal Exchange "TSI" - TSI TelSys Corporation announced today that new orders received during the second quarter ending July 2, 1999 totaled $1.9 million.

There were a total of 18 orders received by the Communications Division during the quarter, which is the largest number of orders received by the division during any quarter.

This total included the Company's first booking under its technology partner program. TSI TelSys signed a $500,000 agreement with Harris Corporation that provides the latter with a license to certain intellectual property developed by TSI TelSys.

Under this agreement, Harris Corporation will be permitted to utilize certain TCDL (Tactical Common Data Link) hardware and software technology developed by TSI TelSys for its own benefit. TCDL is a United States Department of Defense program that seeks to provide the armed services with a common protocol for use by a variety of reconnaissance and communications systems.

Ken Casazza, TSI TelSys, Inc.'s Vice President of Corporate Development, said, "We are pleased that a preeminent company such as Harris Corporation has elected to license some of our technology. We intend to maintain our role as a developer of leading technology and the funds obtained from licensing certain technology will assist us in this objective."

The second quarter orders total also included two new orders from NEC of Japan. One was for two additional telemetry systems plus spares to support the ADEOS II program; the other was for work relating to Japan's DRTS program.

ADEOS II is a joint program between NASA, the National Oceanic and Atmospheric Administration (NOAA) and Japan's National Space Development Agency (NASDA) aimed at monitoring global environmental. DRTS (Data Relay Test Satellite system) is a system being developed by Japan's NASDA to verify and demonstrate advanced data relay technologies in orbit.

Chuck Kozlowski, TSI TelSys, Inc.'s Vice President of Sales, said "We are encouraged to receive this additional business coming from Japan at this time. To date, we have already delivered a total of seven telemetry systems to Japan."

Headquartered in Columbia, TSI TelSys is a leading developer and manufacturer of high performance, multi-mission satellite data processing systems for ground station operations and satellite test and integration.

The Company's LavaLogic(tm) business unit is aimed at developing and marketing the next generation of high level electronic design automation (EDA) software for designers of integrated circuits and electronic systems.

Except for historical information contained herein, the matters discussed in this press release contain forward looking statements that, due to uncertainties, may differ materially from actual results.

Further information about TSI TelSys, including copies of press releases, may be found through the TSI TelSys Internet Web site at http://www.tsi-telsys.com. TSI TelSys Corporation is listed on the Montreal Exchange, under the trading symbol "TSI". LavaLogic is a trademark of TSI TelSys, Inc.