Communications Systems, Inc. Reports Second Quarter 2011 Results

Minnetonka, MN —- August 9, 2011—– Communications Systems, Inc. (NASDAQ: JCS) today reported financial results for its second quarter and six months ended June 30, 2011.

For the three months ended June 30, 2011, net income was $4,085,000, or $0.48 per diluted share, on sales of $45,430,000. For the same period in 2010, the Company earned $2,415,000, or $0.29 per diluted share, on sales of $30,659,000. For the six months ended June 30, 2011, net income was $6,643,000, or $0.78 per diluted share, on sales of $76,452,000. The results for the three months and six months ended June 30, 2011 include a charge of $1,300,000 for reduction in goodwill. For the same period in 2010, the Company earned $3,746,000, or $0.45 per diluted share, on sales of $56,541,000.

William G. Schultz, President and CEO, commented: “Our outstanding quarterly results were bolstered by the previously announced large orders received by our Transition Networks’ business unit early this year. This one- time project contributed $19.4 million in revenue for the quarter. Transition Networks also received additional orders from the same large customer for $1.3 million in June and $4.7 million in July. Orders received from this customer totaled $27.9 million for the six months ended June 30, 2011. While pleased with our quarterly results, apart from increased sales to this customer, we saw a decrease in some of the traditional business in our two larger business units compared to the same quarter last year.”

Further information regarding the Company’s results and related matters is provided in the Company’s Form 10-Q report for the quarter ended June 30, 2011 that is being filed on or about August 10, 2011.

Cautionary Statement
From time to time, in reports filed with the Securities and Exchange Commission, in press releases, and in other communications to shareholders or the investing public, Communications Systems Inc. may make forward-looking statements concerning possible or anticipated future financial performance, business activities or plans which are typically preceded by the words “believes,” “expects,” “anticipates,” “intends” or similar expressions. For these forward-looking statements, the Company claims the protection of the safe harbor for forward-looking statements contained in federal securities laws. Shareholders and the investing public should understand that these forward-looking statements are subject to risks and uncertainties, including those disclosed in our periodic filings with the SEC, which could cause actual performance, activities or plans after the date the statements are made to differ significantly from those indicated in the forward-looking statements when made.

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 the optimization of data and application access, CSI provides the 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.

Company Contact:
Patrick Schaber
Communications Systems, Inc.
(952) 996-1526