TeleCommunication Systems (TSYS) Awardee on $2.6B Custom SATCOM Solutions IDIQ Contract

Department of Defense and Federal Civilian Agencies Now Able to Purchase End-to-End, Innovative Products, Services and Highly Reliable Connectivity

ANNAPOLIS, Md., Sept. 5, 2012 /PRNewswire/ — TeleCommunication Systems, Inc. (TCS) (NASDAQ: TSYS), a world leader in highly reliable and secure mobile communication technology, today announced it has been selected as one of eight awardees of the Custom SATCOM Solutions (CS2) contract. This contract enables the Department of Defense (DoD) and federal civilian agencies to purchase TCS end-to-end, turnkey solutions which incorporate commercial satellite communication services through both the General Services Administration (GSA) and the Defense Information Systems Agency (DISA). The multiple-awardee, Indefinite Delivery – Indefinite Quantity (IDIQ) contract, with an estimated ceiling of $2.6 billion over five years, is part of the Future Commercial Satellite Communications Services Acquisition (FCSA) strategy established by the GSA and DISA to consolidate transponded capacity (satellite bandwidth), subscription services (including terminal and bandwidth combinations) and end-to-end solutions contracting vehicles into one program for procuring custom satellite communication solutions from a select group of qualified contractors.

Government and defense organizations are increasing their reliance on commercial satellite technology to provide essential, secure communications to the warfighter, command and control functions, and disaster recovery and response teams. According to Northern Sky Research, the global market for commercial government satellite equipment and services will grow from $4 billion in 2011 to $9.2 billion in 2019. The need for flexible, mobile wireless services drives agencies toward industry leaders like TCS and its partners for state-of-the-art solutions to reliably and securely transmit voice, video and data across the globe. TCS has a 25-year history of providing proven, reliable and cost-effective secure communication solutions for all tiers of government, and this award will broaden access by government agencies to that experience.

Supporting Quote:

TCS Senior Vice President and General Manager of Government Solutions, Michael Bristol said, “This award significantly expands TCS access to business opportunities well-suited to TCS TotalCom solutions. For the next several years, CS2 will be the main contract vehicle for the DoD and federal civilian agencies to purchase commercial satcom solutions. This contract vehicle aligns perfectly with our business model. We are a value-added systems integrator that provides mission-critical Total Communication Solutions consisting of deployable satcom equipment, managed satcom network services and field support staff.”

For the past 25 years, TCS has established a proven track record as a trusted provider of communication technology solutions to solve the government’s toughest technical challenges, under conditions that demand the highest level of reliability, availability and security. To ensure mission continuity, TCS TotalCom™ offers deployable, highly secure communication solutions and complete end-to-end managed services for converged (IP-based) voice, video and data solutions to organizations requiring seamless and secure connectivity between fixed sites and remote operations.

About TeleCommunication Systems, Inc.

TeleCommunication Systems, Inc. (TCS) (NASDAQ: TSYS) is a world leader in highly reliable and secure mobile communication technology. TCS infrastructure forms the foundation for market leading solutions in E9-1-1, text messaging, commercial location and deployable wireless communications. TCS is at the forefront of new mobile cloud computing services providing wireless applications for navigation, hyper-local search, asset tracking, social applications and telematics. Millions of consumers around the world use TCS wireless apps as a fundamental part of their daily lives. Government agencies utilize TCS’ cyber security expertise, professional services, and highly secure deployable satellite solutions for mission-critical communications. Headquartered in Annapolis, MD, TCS maintains technical, service and sales offices around the world. To learn more about emerging and innovative wireless technologies, visit www.telecomsys.com.

Except for the historical information contained herein, this news release contains forward-looking statements as defined within 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 subject to risks and uncertainties and are based upon TCS’ current expectations and assumptions that if incorrect would cause actual results to differ materially from those anticipated. Risks include without limitation the possibility that TCS will not win task orders under the contract, that orders do not get fully funded, and those detailed from time to time in the Company’s SEC reports, including the reports on Form 10-K for the year ended December 31, 2011, and on Form 10-Q for the quarter ended June 30, 2012.

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.

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TeleCommunication Systems, Inc.

Nadel Phelan, Inc.

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Meredith Allen

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410-295-1865

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SOURCE TeleCommunication Systems, Inc.