NEWS

WIRES

OTHER

VIVO Launches Location-Based Services on TCS Platform in Brazil

Telefônica Empresas Chooses Xypoint(R) Location Platform for the Largest Wireless Operator in South America

TeleCommunication Systems (TCS) , a global leader in wireless data technology, has completed the deployment of its Xypoint® Location Platform (XLP) as part of an integrated project conducted by Telefônica Empresas, the division of Telefônica Group in Brazil responsible for corporate communications services. The project developed by Telefônica Empresas provides VIVO, the largest wireless operator in South America, with a Location Based Services (LBS) platform and an Assisted Global Positioning System (AGPS) for a precise location solution in Brazil.

TCS has supplied Telefônica Empresas with its Location Platform for CDMA networks, which includes a Mobile Positioning Center (MPC), a Position Determining Entity (PDE), and a Wide Area Reference Network (WARN) which together provides a precise end-to-end Assisted GPS solution. The highly accurate system can deliver handset location fixes within 20 meters in as quickly as 10 seconds, enhancing the overall user experience for location applications. TCS' solution allows VIVO to offer a range of location services including fleet management, nearest points of interest, and public safety.

Roberto Medeiros, President of Telefônica Empresas in Brazil, said, "Our partnership with TeleCommunication Systems is strategic to secure the LBS business with VIVO. TCS' expertise and proven location technology solutions have enabled us to rapidly deploy these services with confidence that we provide a secure, scalable and precise location platform."

Luis Avelar, Executive Vice President of Marketing at VIVO, said, "TCS' location technology allowed VIVO to pioneer the launch of Location Based Services in Brazil with the high precision required for the corporate and consumer markets. This will also be an instrument that will provide a sense of security for families with children in these stressful times."

VIVO, as a part of the Portugal Telecom and Telefónica Móviles Groups, is the largest cellular telephone operator in the Southern Hemisphere and has 25 million customers in Brazil. The company is the leader of both individual and corporate market segments and provides solutions to the latter through its VIVO Empresas business unit. VIVO's competitive leadership is in its CDMA technology -- which is the basis of the Third Generation cellular telephones worldwide, according to the International Telecommunications Union (ITU). Added to this are its coverage area, state-of-the-art technology and the innovative nature of its voice and data transmission services, such as broadband mobile Internet, video transmission and other formats of online communication.

Maurice B. Tose, Chairman, President and CEO for TCS, said, "Deploying our Xypoint Location Platform for the Brazilian community, in partnership with Telefonica Empresas and VIVO, sets a standard of cooperation for unparalleled location services in South America. This CDMA network deployment, along with our six successful UMTS network deployments, and our continuing success in solving difficult wireless E9-1-1challenges in the U.S., confirms the merits of our location architecture in the world's technology-leading environments."

ABOUT TELEFONICA EMPRESAS and VIVO

Telefônica Empresas is a business unit of Telefônica Group in Brazil that provides corporate communications services, through an extensive portfolio that includes voice solutions, network connectivity services, full outsourcing and managed data center services. Telefônica Empresas delivers business solutions for leading Brazilian and multinational firms, such as: Volkswagen, Motorola, VIVO, Pão de Açúcar Group, Itaú Bank, Santander Banespa Bank, Bradesco Bank and TAM Airlines Company. Visit our site: www.telefonica.com.br/empresas.

VIVO, as a part of the Portugal Telecom and Telefónica Móviles Groups, is the largest cellular telephone operator in the Southern Hemisphere and the 10th in the world, with 25 million customers in Brazil. The company is the leader of both the individual and corporate segments and provides solutions to the latter through its VIVO Empresas business unit. VIVO's competitive leadership is in its CDMA technology -- which is the basis of the Third Generation cellular telephones all over the world, according to the International Telecommunications Union (ITU). Add to this its coverage, modernity and the innovative nature of its voice and data transmission services, such as broadband mobile Internet, video transmission and other formats of online communication.

ABOUT TELECOMMUNICATION SYSTEMS, INC.

TeleCommunication Systems, Inc. (TCS) is a leading provider of mission critical wireless data solutions to carriers, enterprise and government customers. TCS' wireless data offerings include location-based Enhanced 9-1-1 services, and messaging and location service infrastructure for 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 .

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 and sustain profitability 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.

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.