TCS AND MOBILEWAY FORM STRATEGIC PARTNERSHIP TO CREATE GLOBAL COMMERCIAL SMS NET

TeleCommunication Systems, Inc. (TCS) (NASDAQ: TSYS), a key architect of wireless location and messaging software, and Mobileway, a European and Asia-pacific leader in the field of wireless content delivery and world leader in managing and monetizing mobile data transactions, today announced they are joining forces to create the largest commercial Short Message Service (SMS) delivery network.

SMS and Premium Content will be Targeted at Fertile North American Market

ANNAPOLIS, Md. and SAN RAMON, Ca, July 30, 2002 — TeleCommunication Systems, Inc. (TCS) (NASDAQ: TSYS), a key architect of wireless location and messaging software, and Mobileway, a European and Asia-pacific leader in the field of wireless content delivery and world leader in managing and monetizing mobile data transactions, today announced they are joining forces to create the largest commercial Short Message Service (SMS) delivery network. The partnership will provide a single access point to over 375 million phones for 2-way messaging and 675 million phones for 1-way messaging by utilizing over 85 direct connections with carriers throughout the world.

Through the partnership, TCS will serve as Mobileways North America partner in delivering SMS messages to North American wireless customers, and Mobileway will serve as TCS global partner for delivery outside North America. This strategic partnership will facilitate the delivery of additional commercial SMS traffic into carriers networks from both companies media and enterprise clients.

The TCS/Mobileway partnership is targeting the expected growth in the use of wireless messaging by mobile subscribers. The U.S. market is now poised to lead the world in wireless messaging growth over the next three years. The adoption and use of SMS is the first step towards the successful deployment of premium services evolving to EMS, MMS and other advanced wireless data services. The TCS/Mobileway partnership will focus on providing the highest quality-of-service possible to enable these advanced services.

The TCS/Mobileway strategic partnership will pursue direct connect agreements with North American carriers and establish premium content revenue share deals with carriers on behalf of TCS and Mobileways media and enterprise clients.

We recognise the tremendous opportunity that this partnership will bring to the global commercial SMS marketplace," said Patrice Peyret, Mobileway CEO. Integrating our hubs and networks will allow us to jointly create a global commercial SMS network with more reach and reliability than has been previously achieved for wireless data services."

Merging our network with Mobileways will allow both companies to offer customers new revenue opportunities – contributing to their overall ARPU," said Maurice B. Tosé, chairman, president and chief executive officer for TCS. We are truly unleashing the potential for SMS growth in North America and advancing the ability to communicate quickly and easily – from anywhere around the world."

Mobileways SMS hub sites are based in Paris and Singapore, while TCS North American hub site is located in Seattle. The companies will merge their two networks to create a single global SMS network.


ABOUT MOBILEWAY

Mobileway is the leader in managing mobile transactions across the globe. With direct connections to 88 mobile carriers, Mobileway has unrivalled reach to 90% of mobile users throughout the World, guaranteeing cost effective, secure deployment of mobile applications to professional and personal mobile users.

By expanding the reach of lifestyle services such as instant messaging, infotainment, mobile marketing, m-commerce and enterprise applications, Mobileway increases the value of mobile data for operators, content providers and corporations alike.

Incorporated in Delaware USA, Mobileway has offices located throughout Europe, Asia and the United States. Additional news and information about the company is available at www.Mobileway.com.

ABOUT TELECOMMUNICATION SYSTEMS, INC.

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

TCS is a technology provider to carriers worldwide including Verizon Wireless, Vodafone, Cingular, VoiceStream 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.

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 Companys filings with the Securities and Exchange Commission (SEC). These include without limitation risks and uncertainties relating to the Companys financial results and the ability of the Company to (i) reach profitability as early 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.

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For more information about Mobileway contact:

Amy Breckenridge/Chris Gent, Octopus, 01753 672 755, amy/chris@octopuscomms.net

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