2014

TeleCommunication Systems Receives Nine U.S. and Two Foreign Patents Advancing Mobile Location, Secure Communications, Public Safety, Wireless Data and Messaging Technologies Patent Monetization Efforts Contributed Meaningfully to Fourth Quarter 2012 Results

ANNAPOLIS, Md., Jan. 30, 2013 /PRNewswire/ -- TeleCommunication Systems, Inc. (TCS) (NASDAQ: TSYS), a world leader in highly reliable and secure mobile communication technology, today announced that the U.S. Patent and Trademark Office (USPTO) has issued TCS nine patents during the fourth quarter of 2012; TCS also was issued two foreign patents in this period. TCS' intellectual property monetization efforts contributed meaningfully to its fourth quarter 2012 results and are expected to increasingly be a part of annual operating results.

The nine new U.S. patents describe innovations in mobile location, secure communications, public safety, wireless data and messaging and further strengthen these areas of TCS' intellectual property.

The USPTO issued four patents to TCS related to mobile location:

  • "Point of Interest Spatial Rating Search Method and System" (U.S. Patent 8,301,371)
  • "Consequential Location Derived Information" (U.S. Patent 8,290,505)
  • "Location Privacy Selector" (U.S. Patent 8,315,599)
  • "Telematics Basic Mobile Device Safety Interlock" (U.S. Patent 8,336,664)

The use of smartphones and the data and information that they provide to the user when searching for information is growing at an enormous rate. Many times, the user easily can be overwhelmed by the sheer amount of data available, and sometimes, the information is not relevant. The Point of Interest patent describes techniques whereby the current location of the mobile device from the point of interest is used to inform the search results, so that the user receives only the most relevant information. For example, when the user searches for a specific type of restaurant, they will only receive results that are within a predetermined distance setting.

The Consequential Location Derived Information patent describes methods to reduce location transaction traffic on wireless networks by sharing the location or presence information requested by a particular application with other applications that have previously requested the same information. This significantly eliminates the frequency of location requests.

The Location Privacy Selector patent relates to user-selectable security and privacy levels in wireless devices. Current techniques generally either turn on or off all non-emergency location requests. This patent describes how, through the use of a visually continuous location privacy slider displayed on the screen of the wireless device, the user can select under what conditions the location information will be made available to others.

A study conducted by Monash University shows that drivers who use hand-held devices are four times more likely to get into crashes serious enough to injure themselves. This study and others have fueled a hot debate about how wireless devices should be used by drivers. The Telematics Basic Mobile Device Safety Interlock patent describes a safety interlock system whereby only the driver's wireless services, such as texts, email and voice, are limited or blocked from use while an automobile is in motion.

The USPTO issued two patents to TCS related to secure communications:

  • "Four Frequency Band Single GSM Antenna" (U.S. Patent 8,280,466)
  • "Standard Telephone Equipment (STE) Based Deployable Secure Communication System" (U.S. Patent 8,295,273)

Both of these patents embody significant enhancements in the field of secure communications, pioneered by TCS in 2003 and 2004. The Four Frequency Band patent describes a GSM communications terminal and antenna that supports four common GSM communications bands, thus enabling it to be used worldwide. The communications terminal supports encrypted or unencrypted communications over the selected unsecured GSM communications channel.

The Standard Telephone Equipment (STE) patent describes a small, lightweight and highly portable secure communications method that cloaks encrypted data, so that ordinary, publicly available telephone equipment can be used to transmit secure communications on public networks.

The USPTO issued one patent to TCS related to public safety:

  • "Automatic Emergency Call Notification to Pre-Designated Personal Emergency Contacts" (U.S. Patent 8,295,445)

Many times, in an emergency situation, the person calling for help only has the ability to make one phone call, and it will most likely be to a 9-1-1 emergency response center in order to obtain immediate help. In these situations, relatives and others that the person in need would optimally like to notify may not be aware of the emergency for hours. This patent describes a method and system whereby a pre-designated emergency contact or contacts will automatically receive an email, text or other type of message relaying information that a person that they know has contacted an emergency response center and is in need of assistance.

The USPTO issued one patent to TCS related to wireless data:

  • "A System and Method to Publish Information from Servers to Remote Monitor Devices" (U.S. Patent 8,301,766)

Creating systems and methods to secure web page content and that only allow authorized mobile users to gain access is a critical need. This patent describes web page access and security controls for mobile devices dating back to 2000 whereby access controls and digital certificates are used to ensure a higher level of security.

The USPTO issued one patent to TCS related to messaging:

  • "Gateway Application to Support Use of a Single Internet Address Domain for Routing Messages to Multiple Multimedia Message Service Centers" (U.S. Patent 8,284,784)

Because text and multimedia messages are often managed by different parts of the wireless carrier's infrastructure, the end user must know the domain name associated with message type in order to deliver the message to a wireless subscriber. This patent describes a method whereby wireless service providers can publish a single domain name for the routing of these message types coming in to their network. This single point of access allows the application of consistent carrier-initiated control processing, such as anti-spam checks and message blocking. With a priority date that traces back to 2004, this patent demonstrates the thought leadership that enabled TCS to become a leading provider of messaging services.

Supporting Quotes:

Maurice B. Tose, TCS chairman, CEO and president, said, "TCS is committed to developing and monetizing cutting-edge and innovative technologies that will improve how we communicate while also creating a safer overall user environment. These eleven patents are proof of this commitment, and we will continue to develop even more innovations to bring to the marketplace."

Bob Held, TCS senior director of intellectual asset management, said, "Through both licensing and partnership arrangements in core and non-core business areas, there is an abundance of opportunities to leverage our 250+ patents and other intellectual property worldwide."

With clear strengths in public safety, mobile location, messaging, and the wireless communication fields, TCS has created an impressive intellectual property portfolio. Meaningful partnerships with other industry-leading companies can be developed through direct licensing, cross licensing and joint venture agreements. In 2012, TCS was issued 58 U.S. patents; TCS filed 57 U.S. patents, and TCS sold two U.S. patents, bringing the total number of patents issued worldwide in the portfolio to 263, with over 350 patent applications pending worldwide.

About TeleCommunication Systems, Inc.

TeleCommunication Systems, Inc. (TCS) (NASDAQ: TSYS) is a world leader in highly reliable and secure mobile communication technology. TCS infrastructure forms the foundation for market leading solutions in E9-1-1, text messaging, commercial location and deployable wireless communications. TCS is at the forefront of new mobile cloud computing services providing wireless applications for navigation, hyper-local search, asset tracking, social applications and telematics. Millions of consumers around the world use TCS wireless apps as a fundamental part of their daily lives. Government agencies utilize TCS' cyber security expertise, professional services, and highly secure deployable satellite solutions for mission-critical communications. Headquartered in Annapolis, MD, TCS maintains technical, service and sales offices around the world. To learn more about emerging and innovative wireless technologies, visit www.telecomsys.com.

Except for the historical information contained herein, this news release contains forward-looking statements as defined within 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 subject to risks and uncertainties and are based upon TCS' current expectations and assumptions that if incorrect would cause actual results to differ materially from those anticipated. Specifically, the statement that "there is an abundance of opportunities to leverage our 200+ patents and other intellectual property worldwide" is a forward-looking statement. Risks include without limitation the possibility that no licensing revenues will result from these efforts, and those detailed from time to time in the Company's SEC reports, including the reports on Form 10-K for the year ended December 31, 2011, and on Form 10-Q for the quarter ended September 30, 2012.

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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Company Contact:

Media Contact:

Investor Relations:

TeleCommunication Systems, Inc.

Nadel Phelan, Inc.

Liolios Group, Inc.

Meredith Allen

Graham Sorkin

Scott Liolios

410-295-1865

831-440-2406

949-574-3860

MAllen@telecomsys.com

graham@nadelphelan.com

info@liolios.com

SOURCE TeleCommunication Systems, Inc.



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