TCSI to Acquire GTE's Network Management Organization. Telecom Software Leader Enhances Its Service Fulfillment Product Portfolio

WASHINGTON - TCSI Corporation (Nasdaq: TCSI), a leading provider of software for the telecommunications industry, and GTE Government Systems Corp. (GTE) announced today that they have signed an agreement that will allow TCSI to purchase certain assets of GTE's Network Management Organization (NMO), based in Bothell. The acquisition will expand TCSI's service fulfillment product portfolio by providing superior applications for order entry and service provisioning which are key features of NMO's main product, a suite of software products named "WorldWin". Terms of the deal were not announced.

"TCSI evaluated many possible options for enhancing its product portfolio. The acquisition of GTE's NMO business met all of our criteria. We believe NMO's products, customer base, and channel relationships will help facilitate our growth and enhance our position as a leading software supplier to the telecom industry worldwide," said Ram Banin, TCSI's President and Chief Executive Officer. "There are already many networks supported by WorldWin, thus providing us with valuable references for expanding our customer base, particularly in the emerging telecom sector."

"TCSI represents a terrific opportunity for the Network Management Organization and its employees," said Thomas J. Muldoon, president of GTE Government Systems. "We talked to several companies before selecting TCSI as the new home for our business," he said.

Under the agreement, a number of NMO's product development, technical, and customer service personnel will be invited to join TCSI, ensuring that customers will continue to receive the same high quality products, service, and support. "TCSI and GTE NMO's unit have had a close relationship for quite some time, as WorldWin was originally built utilizing SolutionCore, TCSI's software platform for developing and deploying telecom applications. This synergy allows the WorldWin products to plug-and-play with our current portfolio, and the NMO engineers who join TCSI will bring significant experience developing telecom solutions with SolutionCore," added Banin. "GTE NMO also maintains several key relationships with distribution channels which can be used by TCSI to expand its sales and marketing efforts."

TCSI will sell WorldWin as a fully integrated component of the SolutionSuites family of Operations Support Systems (OSS) applications and through channels such as systems integrators and equipment manufacturers. All service and support for existing NMO customers will continue to be provided by TCSI out of the Bothell, Washington facility.

About GTE

GTE is one of the world's largest telecommunications companies and a leading provider of integrated telecommunications services. GTE is also a leader in government and defense communications systems and equipment, directories and telecommunications-based information services, and aircraft-passenger telecommunications.

About TCSI Corporation

Founded in 1983, TCSI is a leading provider of integrated software products and services for the global telecom industry. A recognized innovator in component-based applications technology, TCSI products and services enable telecom service providers, equipment manufacturers, and systems integrators to rapidly meet the growing demand for automated management of a wide range of networks and services. The company offers SolutionCore, a telecom applications development and deployment platform, SolutionSuites, sets of packaged, highly-configurable OSS applications, and SolutionServices^TM, specialized OSS related consulting services. TCSI serves its customers in offices throughout North America, Europe, and the Pacific Rim. TCSI is at 1080 Marina Village Parkway, Alameda, CA, 94501, 510/749-8500, fax: 510/749-8700, http://www.tcsi.com.

This press release contains certain forward-looking statements as that phrase is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to a number of risks and uncertainties which could cause actual results to differ materially from those projected. Such risks include but are not limited to the following: that this acquisition will not expand TCSI's service fulfillment product portfolio by providing superior applications for order entry and service provisioning, that NMO's products, customer base, and channel relationships will help facilitate TCSI's growth and enhance our position as a leading software supplier to the telecom industry worldwide, that this will not provide TCSI with valuable references for expanding its customer base, that NMO's product development, technical, and customer service personnel will not join TCSI, ensuring that customers will continue to receive the same high quality products, service, and support, that WorldWin products will not plug-and-play with TCSI's current portfolio, and that the NMO engineers will not join TCSI, that TCSI will not expand its sales and marketing efforts by building on NMO's key relationships, and that TCSI will not sell WorldWin as a fully integrated component of the SolutionSuites family of Operations Support Systems (OSS) applications and through channels such as systems integrators and equipment manufacturers. Further risks are detailed in the Company's filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

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