A Unique TCS Feature Delivers a Frequently Requested Service to Assist Public Safety to Route and Deliver Emergency VoIP Calls

ANNAPOLIS, MD, Aug 28, 2006 -- TeleCommunication Systems, Inc. (TCS) (NASDAQ: TSYS), a leading provider of mission-critical wireless data solutions and a leading nomadic VoIP Positioning Center (VPC), is enhancing the location and call routing of Voice over Internet Protocol (VoIP) Emergency 9-1-1 with its array of pioneering services.

"TCS continues to lead through innovation and holds over 20 patents and pending patents in this area," said Dan Allen, Senior Vice President for Service Bureau Operations for TCS. "Real-time MSAG validation demonstrates this expertise. By focusing on the more difficult needs of the nomadic user, TCS has developed a MSAG solution that exceeds the needs of the static-user market."

TCS' foresight and product innovation provides industry-leading VoIP E9-1-1 service to nearly 2 million VoIP users and to over 3,500 Public Safety Answering Points (PSAPs). TCS specialized services include:

Delivery of the Master Street Address Guide (MSAG) address -- With its advanced MSAG matching engine, TCS compares customers' civic addresses to the MSAG and delivers the MSAG version of the address to the PSAP. This assures the address presented to the dispatcher is compatible with existing systems. TCS' VPC delivers the civic address in the event the address cannot be MSAG-validated, a feature unique to TCS and frequently requested by PSAPs.
MSAG-based routing -- TCS is now able to use the MSAG to determine the proper Emergency Services Number (ESN) information for individual calls and to assign Emergency Service Query Keys (ESQKs) for routing per the ESN. This eliminates the requirement for ESN and significantly reduces the PSAP's challenge of developing and maintaining Geographical Information System (GIS) shape files for each ESN.
Multi-ESN deployments -- TCS has pioneered the deployment of nomadic VoIP service at the ESN level. PSAPs prefer ESN-level deployments because they preserve the correct responders in the English Language Translation (ELT) data and because they retain the selective transfer function. TCS' MSAG-based routing capability eliminates the GIS component of these deployments, which remains a major barrier for most VPCs.
MSAG Validation for static VoIP addresses -- TCS has demonstrated significantly higher automatic MSAG matching rates than other solutions; this improves customers' ability to activate service for the end-consumer and reduces the cost of resorting to manual alternatives. This real-time validation function facilitates the uploading of static Automatic Location Information (ALI) addresses by performing a preliminary MSAG validation.
Rapid E9-1-1 Deployments -- In less than a year, TCS has deployed VoIP E9-1-1 to over 3,500 PSAPs across the country.

In addition, in its proven wireless E9-1-1 solution, TCS now allows PSAPs that are using PSAP to ALI Message (PAM) and (legacy) NENA ALIs to overcome limitations in these protocols that inhibit the delivery of Mid-Call Location Updates (MCLUs). With this feature, PSAPs can obtain MCLUs when they are available without requiring changes to the legacy emergency services network.

ABOUT TELECOMMUNICATION SYSTEMS, INC.

TeleCommunication Systems, Inc. (TCS) produces wireless data communications technology solutions that require proven high levels of reliability. TCS provides wireless and VoIP E9-1-1 network-based services, secure deployable communication systems and engineered satellite-based services, and commercial location applications, like traffic and navigation, using the precise location of a wireless device. Customers include leading wireless and VoIP carriers around the world, and agencies of the U.S. Departments of Defense, State, and Homeland Security. For more information, please 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 and sustain profitability when anticipated, (ii) continue to rely on its customers and other third parties to provide additional products and services that create a demand for 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.