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PRESS RELEASE: Communications Systems, Inc. Announces the Acquisition of Patapsco Communications

2011/08/01

Integration with Transition Networks will Bolster Company’s Ability to Address Additional Architectures for Broadband Delivery

Minneapolis, MN - August 01, 2011- Communications Systems, Inc. (NASDAQ: JCS), a global provider of broadband network solutions, announced today the successful acquisition of Patapsco Designs Limited of the UK (who trade as Patapsco Communications) for its Transition Networks business unit. The acquisition significantly bolsters Transition Networks’ position as a leading manufacturer of broadband hardware solutions aimed at service provider, enterprise and government networks.

The Patapsco acquisition adds pseudowire, also known as TDM over IP or Circuit Emulation Services (CESoIP), and a variety of ISDN products including ISDNoIP to Transition Networks’ portfolio and capabilities. Their wide range of technology allows for the transportation of TDM traffic over IP and Ethernet packet networks. Patapsco has built a 20-year reputation for quality, customer support, and a focus on delivering solutions for difficult technical challenges, such as highly-accurate clocking and synchronization necessary for applications, such as mobile backhaul delivery via packet networks. Other established products address challenging migration issues from legacy systems to Next Generation Networks (NGNs).

“Patapsco’s product line is a strategic addition for Transition Networks in expanding its product offering to the service provider market.  Patapsco has a strong line of existing products that we can immediately leverage in Transition Networks’ customer and distribution network around the world.   Furthermore, the combined engineering efforts of Patapsco and Transition Networks will allow us to bring new products to market that utilize core technologies from both companies,” stated William G. Schultz, President and CEO of Communications Systems, Inc.

The addition of Patapsco’s technology to Transition’s portfolio allows the company to offer new and innovative architectures for broadband delivery of both new and legacy services. Paired with Transition’s established portfolio of robust Carrier Ethernet products, the company will now be able to offer a wider portfolio of flexible, cost-effective and unique solutions for customers as they migrate to packet-based networks. Patapsco’s focus on quality and support is also a direct fit to Transition’s business model which includes customer-friendly warranties and 24x7 customer support.

“I am delighted to be working with CSI; they bring the perfect combination in terms of established channels and customers that match our engineering skills and products/services. Patapsco’s historic focus on engineering excellence and innovative migration products is an ideal fit with CSI’s individual customer-orientated strategy. The company cultures are similar and we are already working closely in bringing established products to market under the Transition Networks banner as well as on exciting new developments, and I anticipate the arrangement will open many new opportunities,” says Paul Strawbridge, founder and Managing Director of Patapsco Designs Limited.

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.

About Transition Networks Inc.
With over 20 years of growth and expertise in hardware manufacturing, Transition Networks offers the ability to affordably integrate the benefits of fiber optics into any data network -in any application- in any environment. Offering support for multiple protocols, any interface, and a multitude of hardware platforms Transition’s portfolio gives the power to deliver and manage network traffic reliably over fiber. Based in Minneapolis, Minnesota, USA, Transition Networks distributes hardware-based connectivity solutions exclusively through a network of resellers in over 50 countries. Transition Networks is a wholly owned subsidiary of Communications Systems, Inc., a publicly traded company (NASDAQ: JCS).

About Patapsco Designs Ltd (who trade as Patapsco Communications)
Established in 1989 and based in the U. K., Patapsco Communications is a privately held company. They have developed a sophisticated and comprehensive range of highly-featured and manageable products for enterprise, system integrators, carriers, and governmental organizations. Focusing on TDM, ISDN and IP/Ethernet technologies and specializing in synchronization and quality of service, the company has designed and manufactured a wide range of sophisticated but simple-to-use Carrier-grade systems with a single management system supporting all platforms. Patapsco delivers their products worldwide via established partners and offers high levels of training, support, and remote assistance.

Statements regarding the Company's anticipated performance in 2011 are forward-looking and involve risks and uncertainties, including but not limited to: competitive products and other factors discussed from time to time in the Company's filings with the Securities and Exchange Commission.



Company Contact:
Patrick Schaber
Transition Networks
(952) 996-1526

Editorial Contact:
Kim Miller
Tier One Partners
(617) 610-0583

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