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Two-Way Text Messaging Subscribers Can Now Send Messages To Anyone Regardless of Wireless Carrier Network

URL(s): TeleCommunication Systems


ANNAPOLIS, Md- March 12, 2001-TeleCommunication Systems, Inc. (TCS) (NASDAQ: TSYS), a key architect of wireless messaging software, announces a technology that enables two-way text messaging subscribers to send a text message to any digital wireless phone by simply entering the person's phone number. Currently, subscribers must know a person's wireless e-mail address, as carrier networks are not able to pass messages between each other. The new service, called the Message Distribution Center (MDC), will also provide commercial enterprises, such as application providers or global enterprises, a quantum leap in the range and reliability of wireless messaging services. TCS has signed CANBOX and room33 as its premiere enterprise customers.

The MDC enhances the delivery of messages by inter-connecting carrier networks and enables commercial enterprises to easily deliver messages based on core network intelligence, such as subscriber presence and location. The MDC:

* Opens a new revenue stream for wireless carriers, * Eliminates a key technical barrier to consumer adoption of text messaging in the U.S.,

* Provides commercial enterprises with messaging functionality beyond the existing Short Message Service (SMS) and

* Provides wireless carriers with a tool for managing data flow across their network, thus curbing costs, reducing unwanted messages and utilizing bandwidth more efficiently.

"Through the MDC we can give text messaging in the U.S. the same functionality that has caused it to explode in Europe," said Maurice B. Tosé, president and CEO of TCS. "The MDC provides a conduit between carrier SMS networks, brings an additional and significant revenue stream to the carriers and enables wireless carriers to effectively manage messaging traffic flow across their network."

In the U.S., wireless carriers operate on a number of technical platforms (CDMA, GSM and TDMA), thus reducing wireless subscribers' ability to send text messages from one carrier network to another. For example: a Verizon Wireless subscriber cannot currently send a text message using only a phone number to an AT&T Wireless subscriber. The MDC solves this problem by serving as a central point between these networks allowing messages to flow seamlessly between them.

"TCS has resolved the technical aspects of inter-carrier messaging, one of the key issues limiting the growth to wireless messaging here in the United States," said Rebecca Diercks, director of wireless research at Cahners In-Stat Group. "Additionally, The MDC's commercial messaging service is one of the first we've seen that really adds value to messaging, making it an attractive option for both consumers and commercial enterprises."

Since it supports connectivity to more than 70 wireless carriers and paging networks in the Americas, the MDC acts as a messaging clearinghouse for commercial enterprises. The MDC provides commercial enterprises with the ability to prioritize message delivery and will enhance messages with location information.

Finally, the MDC helps carriers manage data flow across their network by only sending opt-in messages, only sending messages when phones are on, and prioritizing messages during heavy traffic periods.

TCS has signed agreements with CANBOX, a global provider of Unified Messaging, and room33, a Stockholm-based mobile software and portal technology company. Under the agreements, the companies will pay TCS for using the MDC to send messages to their customers.

ABOUT TELECOMMUNICATION SYSTEMS, INC.

TCS is evolving wireless technology. As the key architect of wireless messaging and location technology, TCS is delivering essential software, services, and solutions to carriers that enable people to better manage their mobile lifestyle. TCS occupies a privileged position within the core of the wireless carrier network enabling it to develop technology that ensures the security, reliability and privacy of people's wireless messages.

Today, TCS is the preferred technology provider to carriers worldwide including Vodafone, Verizon Wireless, Telefonica and VoiceStream. Through its solutions group, TCS develops advanced applications that will continue to evolve the face of wireless messaging. Visit the web site at www.telecomsys.com.

For further information on TCS's Xypoint location platform, visit www.xypoint.com. Editors interested in testing TCS text messaging services, please visit www.webwirelessnow.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's 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.



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