TeleCommunication Systems, Inc. and Velocita Wireless, L.P. Sign New Partnership Agreement

ANNAPOLIS, MD -- 10/26/2004 -- TeleCommunication Systems, Inc. (TCS) (NASDAQ: TSYS), a global leader in wireless data technology, today announced it has signed a reseller agreement with Velocita Wireless.

Under the terms of the agreement, TCS will become a reseller of the RIM BlackBerry Solution on Velocita’s Mobitex data communications network. In addition, TCS will become a reseller of Velocita’s Interactive Messaging Plus, an innovative service that enables BlackBerry Handheld to Handheld communications with message delivery and read confirmation.

“This is the next step in our long standing relationship with TCS,” said Tom Langan, vice president of marketing for Velocita Wireless. “They are the premier partner to represent our network and provide industry leading support and services for enterprise customers.”

“This event is a great extension of our partnership with Velocita,” said Gregg Smith, senior vice president for the TCS Enterprise Division. “The Mobitex network is a reliable data network that our customers have entrusted for the delivery of their mission critical data and messaging.”

ABOUT VELOCITA WIRELESS, L.P.

Headquartered in Woodbridge, NJ, Velocita Wireless provides corporate email, interactive messaging, field force automation, telemetry, and other advanced wireless data services through its highly reliable, nationwide Mobitex packet data network. Additional information about Velocita Wireless can be found at www.velocitawireless.com.

ABOUT TELECOMMUNICATION SYSTEMS, INC.

TeleCommunication Systems, Inc. (TCS) (NASDAQ: TSYS) is a leading provider of mission critical wireless data solutions to carriers, enterprise and government customers. TCS’ wireless data offerings include location-based Enhanced 9-1-1 services, and messaging and location service infrastructure for wireless operators, real-time market data and alerts to financial institutions, mobile asset management and mobile office solutions for enterprises, and encrypted satellite communications to government customers. For more information 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 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 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.

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