Welcome to Communications Systems, Inc. 2011 Annual Shareholders Meeting

1. Welcome to Communications Systems, Inc. 2011 Annual Shareholders Meeting

2. Communications Systems Inc. • Management Change • Jeff Berg retired as President and CEO of CSI after 21 years of service, but remains a member of the board of directors • Bill Schultz becomes President and CEO of CSI, he has also been named to the board of directors • 2010 Financial Results • CSI had strong financial results in 2010 with an increase in revenue of 9% and operating income before taxes increased 53% over 2009.

3. CSI Initiatives • Acquisitions • In 2010 we were very active in searching for potential acquisitions. While we were not able to make an acquisition in 2010 the effort will continue in 2011. • We are looking for companies or product lines to augment our current business units. • Enterprise Resource Planning (ERP) System • CSI is in the process of selecting a new ERP system that will be used across all business units. • This will help make processes throughout the organization more efficient and cost effective.

4. CSI Initiatives Continued • Product and Services Innovation • In 2011 we will continue to invest in people, software, and equipment to help bring innovative products to market. • It is imperative to our long term success that we continue to bring new products to our existing customers and develop products for new markets as well. • Leverage Shared Resources • While we have unique business units we continue to find ways to take advantage of best practices, shared support groups, and facilities across CSI. • Established a new position for Director of Marketing for CSI. • Transition Networks opened a logistics center in UK at Austin Taylor facility.

5. Austin Taylor • The financial performance of Austin Taylor has not improved so we are making changes to the organization. • The plastics business will be integrated into Suttle, allowing Suttle to use Austin Taylor’s infrastructure, distributors, and customer base as a launch point into the EMEA market. • This will help with Suttle’s initiatives to expand globally. • Transition Networks has established a logistics center at the Austin Taylor facility. • We are exploring strategic alternatives for Austin Taylor’s metal works business.

6. Strong Financial Results • Public Company Since 1981 Every Year Profitable • Listed on the NASDAQ Stock symbol: JCS • 2010 Revenues $120,072,310 • 52-Week Range (3/15/2011) $16.40 - $10.08 • Total Assets (12/31/10) $109,070,227 • 2010 Net Income $9,715,433 • 2010 Earnings Per Share $1.15 • Dividends Per Share $0.59 • Stockholders Equity (12/31/10) $91,396,693 • Market Cap (3/5/2011) $116,679,000 • Shares Outstanding (12/31/10) 8,422,890

7. Strong Financial Results • Public Company Since 1981 Every Year Profitable • Listed on the NASDAQ Stock symbol: JCS • Q1 2011 Revenues (3/31/2011) $31,022,802 • 52-Week Range (3/31/2011) $16.40 - $10.08 • Q1 2011 Total Assets (3/31/2011) $110,317,973 • Q1 2011 Net Income (3/31/2011) $2,557,838 • Q1 2011 Earnings Per Share $0.30 • Q1 2011 Dividends Per Share $0.15 • Stockholders Equity (3/31/2011) $92,959,024 • Market Cap (3/31/2011) $129,779,000 • Shares Outstanding (3/31/2011) 8,432,658

10. Secure Access to Business Critical Applications • Any where … Any time … Any device • Moving toward the Post PC World … Device Independent … BYO • Market Focus • Historical K-12 • Today & Future • Commercial Enterprise (50 to 1,000 users) • Healthcare • Government • K-20 Education

11. Gartner Predicts $65.7 billion in VDI revenue and 49 million users in 2013 • VDI revenue growth from $1.3 billion in 2009 to $65.7 billion in 2013. • VDI grew by 14% in 2009 and will have a compound growth rate from 2009 to 2013 of 113% each year. • Reasons for VDI market growth: • Green technology, companies save money by increasing life cycle of hardware, consolidate hardware, decrease energy consumption and recycle current hardware. • Increased efficiency, productivity and reliability. • Standardizes the infrastructure, increases up time, decreased RTO (Recovery Time Objective) and rapid deployment of infrastructure.

12. Gartner’s Top 10 Strategic Technology Trends • Cloud Computing • Mobile Applications & Media Tablets • Next Generation Analytics • Social Analytics • Social Communications and Collaboration • Video • Context-Aware Computing • Ubiquitous Computing • Storage Class Memory • Fabric-based Infrastructure

13. Suttle

14. 2011 Key Objectives • Expand Markets Geographically • Expand efforts in Latin America Market (LAM) • Integrate Austin Taylor and leverage into EMEA • Define APAC Entrance Strategy • Invest in Technology and Operational Capabilities • Evolve Infrastructure to support market expansion and new product platforms. • Outside Plant, Fiber, Active • Automation • Advance 3 Main Product Initiatives • Home Networking • Connectivity • Outside Plant/Configurations

15. Home Networking Actives Passives G.hn and G.hem| Homeplug | HPNA| MOCA | xDSL Gateways xDSL Splitters | Balluns | Diplexers | Filters | Video Products Global Product Strategy

16. Connectivity Copper Fiber Tool-less Jacks & Blocks | Protection Line Modules | Bridge Modules High Count Termination | Optical Components Global Product Strategy

17. OSP/Configurations Plastic Metal Splice Closures | Building Entrance | NEMA Boxes Next Gen SOHO Enclosures | OSP Rated Enclosures Fiber/Copper X-Connects Global Product Strategy

18. Americas EMEA APAC Product and Customer Expansion Focusing on emerging markets such as Brazil Integrate Austin Taylor including channel and customer base Focus on Home Networking and copper connectivity products Formulating strategy for expansion into the APAC market Identifying key customers Global Market Strategy

19. Transition Networks

20. Strategic focus • Transition Networks supports communication of various products applications and services over fiber optical media • Staying focused and expanding on identified markets • Service Providers • Telecom • Internet Service Providers • Cell phone towers connectivity (Backhaul) • Security & Surveillance • Connectivity for Security cameras • Government • Military, Cities, State/Province • Retail • Connectivity for cash registers, warehouse devices, wireless access points • Enterprise • Industrial • Energy, Manufacturing, Transportation • Education

21. Strategic focus • Vertical focus areas • New product development for specific vertical markets • New software capabilities as key differentiator • Certifications & approvals • Investment in New equipment to support products • Geographic expansion of all verticals • Adding resources throughout the organization • More marketing efforts – Social media, tradeshows, web development

22. Strategic focus • Key groups expanded • R&D; emphasis on software • Test, Verification, Interoperability • Tech Support • Global Sales Engineering & Business Development • Process Improvement • Customer escalation system • Development Verification Testing (DVT) • Globalization • New Warehouse in Europe • Started transactions in additional currencies • Better localization

23. Thank you