COMMUNICATIONS SYSTEMS, INC. ANNOUNCES LAUNCH OF NET2EDGE LIMITED

Minnetonka, MN – January 8, 2016 – Communications Systems, Inc. (NASDAQ: JCS) (“CSI” or the “Company”), a global provider of physical connectivity infrastructure and services for deployments of broadband networks, today announced the launch of Net2Edge Limited, a UK limited company that is wholly-owned by CSI and focused on the service provider and large enterprise communications access markets.

Net2Edge will be treated as a separate business unit of the Company and will draw on technology from Transition Networks Inc., including TDM and ISDN services over packet technology derived from Transition Networks’ prior acquisition of Patapsco Designs Ltd., as well as other new technologies.

Transition Networks remains very active in all of its traditional markets. The creation of Net2Edge provides each organization the ability to focus on its respective core development and marketing activities.

CSI’s Chief Executive Officer Roger H.D. Lacey commented, “The creation of Net2Edge provides a focused platform for CSI to address the significant market opportunity in the Carrier Ethernet markets and the developing Network Function Virtualization industry.  Additionally, the split from Transition Networks does not materially affect Transition Networks’ activity, rather it provides broader opportunity.”

Forward-Looking Statements

Certain statements in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  These statements are based on Communications Systems’ current expectations or beliefs and are subject to uncertainty and changes in circumstances.   Actual results or events may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive or regulatory factors, and other risks and uncertainties affecting the operation of Communications Systems’ business. These risks, uncertainties and contingencies are presented in the Company’s Annual Report on Form 10-K and, from time to time, in the Company’s other filings with the Securities and Exchange Commission. The information set forth herein should be read in light of such risks.  Communications Systems is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, changes in assumptions or otherwise.

About Communications Systems

Communications Systems, Inc. provides physical connectivity infrastructure and services for global deployments of broadband networks. Focusing on innovative, cost-effective solutions, CSI provides customers the ability to deliver, manage, and optimize their broadband network services and architecture. From the integration of fiber optics in any application and environment to efficient home voice and data deployments to optimization of data and application access, CSI provides tools for maximum utilization of the network from the edge to the user.  With partners and customers in over 50 countries, CSI has built a reputation as a reliable global innovator focusing on quality and customer service.

Contacts:
Communications Systems, Inc		The Equity Group Inc.
Edwin C. Freeman		Devin Sullivan
Chief Financial Officer		Senior Vice President
952-996-1674		212-836-9608
[email protected]		[email protected]
Roger H. D. Lacey		Kalle Ahl, CFA
Chief Executive Officer		Senior Associate
952-996-1674		212-836-9614
		[email protected]