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PRESS RELEASE: Communications Systems Announces Sale of Certain Assets

2007/07/20

HECTOR, Minn., July 20/PRNewswire/ -- Communications Systems, Inc. (AMEX: JCS) announced today that part of its wholly owned subsidiary JDL Technologies, Inc., serving the K-12 education market for voice, video and data networks and professional staff development solutions will be acquired. Thomas Lapping, JDL's founder and President will be leaving the company and will acquire the professional staff development and video distribution business of JDL Technologies. JDL's core business of operating networks and providing service level management for services that run over those networks will remain with Communications Systems, Inc.

These assets are being acquired through the newly formed company JDL Horizons. Thomas Lapping, JDL Horizons CEO stated, "After 18 years running and managing JDL Technologies, I would like to focus more exclusively on the professional development and video distribution businesses which are synergistic and in high demand by schools and universities as well as significantly different than the core business of CSI/JDL. JDL Horizons will continue to serve the professional staff development and video distribution needs of some of the largest school districts in the nation. Additionally, JDL Horizons will focus on emerging opportunities with key alliance partners and this will demand a greater percentage of time and focus," he said.

Jeffrey Berg, President and CEO of Communications Systems, who was instrumental in the acquisition of JDL Technologies in 1998, said, "I would like to thank Tom and his Minnesota based staff for their professionalism and significant contributions to both JDL Technologies and CSI over the last nine years. The arrangement of this initiative has been amicable and provides the direction and focus needed for both entities to continue to grow and thrive," he said.

The sale of the professional development and video business units to JDL Horizons is effective today. The terms of the sale were not disclosed.

About JDL Horizons

JDL Horizons, LLC. focuses on enhancing the integration of technology in the classroom through professional staff development and provides IP based video technology in support of all school based activities. These services will include: professional staff development; enhanced communication and student learning achievement; on-demand and distributed video that supports effective classroom instruction; and community outreach with school and district based IP broadband television for school based clubs, after school activities and sports.

About Communications Systems

Communications Systems, Inc. (CSI) provides physical connectivity infrastructure and services for cost-effective broadband solutions and is a leading supplier of voice grade connecting devices and wiring systems. CSI serves the broadband market as the world's leading supplier of media conversion technology, which permits networks to deploy fiber optic technology while retaining the copper-based infrastructure already embedded in the network. CSI also supplies copper wire and fiber optic structured wiring systems for broadband networks and line filters for digital subscriber line (DSL) service. CSI also provides network design, management and application support services under the JDL Technologies name.

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