Communications Systems, Inc., Launches “Software-as-a-Service” Private LTE Offering

New business model is focused on making higher margin, recurring and highly predictable services an increasing proportion of future revenue

MINNEAPOLIS, Minn.—November 2, 2020— Communications Systems, Inc. (NASDAQ: JCS) (“CSI” or the “Company”), an intelligent edge products and services company, today announced the release of a Private LTE as a service offering through a collaboration of its subsidiary Ecessa® with its strategic partner Quortus.

Private LTE/5G offers new opportunities for enterprises and governments to build wireless communication solutions for their needs. Spectrum for Private LTE/5G applications is now available in multiple countries, including the 3.5 GHz band (formerly Citizens Broadband Radio Service (CBRS)) in the US.  Private LTE offers better coverage, more throughput and improved security compared with traditional wireless solutions. It is currently being deployed on college campuses, and is perfect for corporate campuses, manufacturing plants, hospitals and any organization that needs to deliver broadband wireless access to multiple buildings across expanses of property.

Roger Lacey, CEO of CSI noted, “When we made strategic investments in Ecessa and Quortus earlier this year, our objective was to build out mobile edge capabilities, increase our ‘software-as-a-service’ recurring revenue stream, and create long-term value. This new technology offering successfully leverages those investments to deliver on all three of those goals.”

“Working in close strategic partnership with CSI and its subsidiary Ecessa, we are capitalizing on the growing global demand and spectrum availability for private wireless networks,” said Mark Bole, CEO at Quortus. “Together, we have the product capabilities to deliver significant competitive advantage to organizations in our target markets.”

“Ecessa has always been about making any network better by adding traffic management, encryption, network failover and other software-defined wide area network (SD-WAN) features,” said Mike Siegler, Ecessa’s General Manager. “Making Private LTE networks even more secure and reliable fits perfectly with our core strengths.”

About Quortus

Quortus is a pioneering UK company that is changing the mobile communications world using the best IT principles to create innovative mobile communication software that is easy to deploy, manage and scale. The company has created a software defined core network technology platform and a suite of products that covers 3GPP 4G, 3G and GSM standards, in addition to taking the lead with emerging technologies such as 5G, Mobile Edge Computing (MEC), Private LTE and cellular core network virtualization. Learn more at www.quortus.com.

About Ecessa Corporation

Ecessa Corporation, a Communications Systems Inc. company (NASDAQ: JCS), manufactures and distributes software-defined wide area networking (SD-WAN) solutions for business. Since 2002, the company has deployed over 10,000 field installations of Ecessa Edge®, PowerLink®, and WANworX® controllers and enabled organizations of all sizes to reliably run Internet and cloud-based applications, connect offices worldwide and distribute traffic among a fabric of multiple, diverse ISP links, ensuring business continuity by removing bottlenecks and eliminating network downtime. These capabilities optimize Never Down® performance of business-critical applications, aid in lowering IT costs, and make it easier to provision, maintain and support business networks and the applications that run over them. For more information about Ecessa and its SD-WAN products, visit www.ecessa.com.

About Communications Systems

Communications Systems, Inc., an IoT intelligent edge products and services company, provides 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. CSI operates Transition Networks, Net2Edge, JDL Technologies, and Ecessa. For more information visit: commsysinc.com.

Forward Looking Statement

This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding future financial performance, future growth and future acquisitions. These statements are based on Communications Systems’ current expectations or beliefs and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements here 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. Further, investors should keep in mind that the Company’s financial results in any particular period may not be indicative of future results. 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.

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