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TCS AND MESSAGEVINE OFFER INTEGRATED INSTANT MESSAGING, LOCATION AND SMS PORTAL SOLUTION


- Agreement Enables Wireless Operators to Add Mobile IM Services - TeleCommunication Systems, Inc. (TCS) (NASDAQ: TSYS), a key architect of wireless messaging and location software and a leading supplier of solutions to wireless service providers, today announced that it has signed an original equipment manufacturer (OEM) agreement with MessageVine, a leading provider of mobile Instant Messaging (IM) solutions.

The agreement calls for the integration of the MessageVine IM Server with several TCS text messaging and location products, including TCS' Wireless Internet GatewayT, TCS' XypointŪ Location PlatformT and Short Message Service Center.

With the combined solution, wireless operators can establish their own instant messaging service by letting subscribers access a branded client interface. In other words, wireless carriers may display their own brand name on the subscribers' handset screens as subscribers use their instant messaging service. The solution facilitates IM among many client interfaces, including BREW, J2ME, SMS, MMS, Pocket PC, I-mode, HTML and WAP.

The TCS Xypoint Location Platform enables wireless operators to enhance their wireless instant messaging service by adding location and advanced presence capabilities. The addition of location and advanced presence capabilities enables wireless operators to let subscribers actually locate people on their buddy list and inform them of their buddies' device status (on, off, in meeting, etc.).

"The integrated solution can help carriers increase their average revenue per user (ARPU) by providing simple and user-friendly access to popular services and features," said Timothy Lorello, senior vice president and chief marketing officer at TCS. "We believe that allowing subscribers to extend their familiar desktop instant messaging experience to their wireless devices and seamlessly switch between the two is a powerful proposition."

"MessageVine offers a mature, stable solution that has been successfully deployed by service providers," said Eli Efrat, MessageVine chief executive officer. "TCS has an excellent messaging and location infrastructure technology and great market presence. It's a winning combination."

MessageVine's IM server is interoperable with web-based IM brands including Microsoft's Messenger, AOL's Instant Messenger, ICQ and Yahoo! Messenger. Telus Mobility recently launched its IM service based on the company's products, and T-Mobile demonstrated mobile IM with MessageVine at CeBIT 2002.

As of March 31, 2002, TCS was serving or under contract to serve 41 carrier networks worldwide.

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 a technology provider to carriers worldwide including Vodafone, Cingular, Verizon Wireless, Hutchison 3G and Telefonica. Through its Solutions group, TCS deploys advanced technologies and products that promote the continued evolution of wireless services. Visit the web site at www.telecomsys.com.

ABOUT MESSAGEVINE

MessageVine is the leading worldwide provider of standards based private-label Presence and Instant Messaging server products, providing commercially deployed, completely branded and customized carrier-scale wireless and wireline IM solutions to wireless carriers, Telcos and ISPs. MessageVine's products, designed with open architecture that integrates with the full array of back-end systems, enable its customers to extend their brands and increase overall ARPU. MessageVine's customers include leading service providers such as T-Online International and TELUS Mobility. MessageVine has offices in San Francisco and Tel Aviv. For more information, visit MessageVine on the web, at: www.messagevine.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.

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 the risks and uncertainties relating to the company's future financial results and ability of the Company to (i) reach profitability as early as anticipated, (ii) continue to rely on third parties to market and sell the Company's products and for other relevant support, (iii) adapt and integrate new technologies into its products, (iv) expand its business offerings in the new wireless data industry, (v) capitalize on opportunities in the marketplace, (vi) develop software without any errors or defects, (vii) implement its sales and marketing strategies, and (viii) deploy its software and services quickly.

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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