Welcome to Communications Systems, Inc. Annual Shareholder Meeting

1. Welcome to Communications Systems, Inc. Annual Shareholder Meeting 2012

2. 2011 Performance • Strong revenue and profit performance • 2011 full year revenue of $143,755,000 • 2011 full year profit of $9,798,000 • Large project for Transition Networks major contributor to revenue increase over 2010.

3. Continuous Improvement • Constantly working to improve our products, service, and processes. • Changes taking place in all business units and all facets of the business • Austin Taylor Integration • New ERP • Selected IFS as our partner • Reviewing, streamlining, improving our processes • Offers improvements from product development, manufacturing, to customer service

4. Acquisitions • Patapsco acquired in July of 2011 • UK Company • Technology target • Integration into Transition Networks • Ongoing Search • Continue search and discussions with companies • Targets • Strategic fit for existing business unit • Standalone entity

5. Q1 2012 • Dissatisfied with earnings results • Strong financially • $40.6mil Cash and $75.9mil in Working Capital • Continue to support dividend • Continuing to invest with long term horizon • Engineering, Sales, Marketing • Bright future • Opportunities in each business unit • New products and services, global expansion

6. Financial Results 2011 Annual Figures • Public Company Since 1981 Every Year Profitable • Listed on the NASDAQ Stock symbol: JCS • Revenues $143,775,000 • Total Assets (12/31/11) $116,659,000 • Net Income $9,798,000 • Earnings Per Share $1.15 • Dividends Per Share $0.60 • Stockholders Equity (12/31/11) $97,531,000 • Market Cap (12/31/11) $119,043,000 • Shares Outstanding (12/31/11) 8,467,000

7. Financial Results Q1 2012 Figures • Public Company Since 1981 Every Year Profitable • Listed on the NASDAQ Stock symbol: JCS • Revenues $24,244,000 • 52 Week Range (5/21/12) $10.41 - $20.93 • Total Assets (3/31/12) $112,447,000 • Net Income $55,000 • Earnings Per Share $0.01 • Dividends Per Share $0.16 • Stockholders Equity (3/31/12) $97,173,000 • Market Cap (5/21/12) $92,127,000 • Shares Outstanding (3/31/12) 8,507,000

8. JDL Technologies

9. Strategic Focus For 2012 Transition from Services to Solution Selling Combine Our Services into a Compelling Solution Comprising: Managed Services Virtualization Wired and wireless network design and deployment Converged infrastructure configuration and deployment

10. JDL’s Focus is on Solutions That… Reducecosts with increased efficiency, productivity & performance Increase workplace flexibility & agility Enhance end user experience Upgrade level of availability & security Improve disaster recovery & business continuity

11. Target Markets Education We continue our focus on Broward Public Schools and are working on bringing additional solutions to bear thus expanding our penetration within the account Additional Markets Miami Dade Palm Beach School Districts Private Education SMB (Small to Medium Businesses) Target the SMB space defined as 250-2,000 employees Potential Verticals - Leveraging existing clients to carve our new verticals Medical Manufacturing Retail

12. CIO Top 3 Initiatives – Number 1 Key Initiative: Increase Efficiencies Increased Cost Sensitivities Encourage “More with Less” Increased Access to Business Analytics Drives Change Solutions Managed Services enables greater reach without increased head count Virtualization maximizes existing infrastructure Converged Infrastructure – Right Provision the DC Factoid – SMB IT Spend in 2012 forecasted at 150 billion by IDC

13. CIO Top 3 Initiatives – Number 2 Key Initiative: Cost Reduction Lower Resource/Employee Costs Increase Employee Productivity Increase Resource Utilization Decrease IT Footprint Lower IT Overhead Costs Identify Areas for Consolidation (i.e. Virtualization) Execute Consolidation and Cost Containment Plan Solutions Managed Services Virtualization Converged Infrastructure Networking Factoid – IT Spending in the K-12 space expected to top 110 billion with BYOD support being a key spend item

14. CIO Top 3 Initiatives – Number 3 Key Initiative: Enable Security while Maximizing Access Allow Employees to Focus on Core Competencies Enable End Users to Maximize Performance (BYOD / Mobility) Provide a Predictable and Reliable Environment Build Platform for Disaster Recovery and Business Continuity Prepare for Compliance & Auditing Establish Site and Device Security Factoid – South Florida is home to more than 174,036 small businesses

15. Suttle

16. Suttle Key Objectives • Enable The Truly Connected Home • Multi-Dwelling Unit (MDU) is principal target for expanded capabilities • Focus on Customer Relationship • Collaborative process in determining customer’s needs and solving problems • Organizational Development • Industry Experience • Global Presence • Workforce Development Ecosystem In Costa Rica • Market Expansion underway in Latin America, EMEA, and Canada • South America, Eastern Europe, and Middle East in focus • Resources in place in Europe, Middle East and LAM

17. The truly connected home G.hn–the new standard in home entertainment networking • G.hn technology is an emerging global standard in the home networking space • Promoter member of Homegrid Forum • Voice, data, and video services • Home energy management services

18. FutureLinkTM FTTX Enhanced Networks Solutions • Scalable, versatile, and customized fiber distribution solutions for multi-dwelling unit (MDU) and single family unit (SFU) enhanced network deployments. • Markets in North America, Latin America, Europe, and the Middle East are in early stages.

19. FutureLinkTM FTTX Enhanced Networks Solutions • High Speed Tool-less copper distribution solutions for multi-dwelling unit (MDU) and single family unit (SFU) enhanced network deployments • Emerging XDSL technologies leverage existing copper cabling infrastructure

20. Transition Networks

21. Strategic focus • Vision: • Transition Networks is the preferred technology partner providing innovative networking solutions and specialized products worldwide. • Media converters • Switching and aggregation devices • Network Accessories

22. Strategic focus 2012 & Beyond • Staying focused and expanding on identified markets • Maintain strong leadership in the enterprise & government market while growing Telecom and Industrial Markets for differentiation and diversification • Telecommunication Service Providers for businesses • Cell phone towers connectivity (Backhaul) • Security & Surveillance • Physical security • Connectivity for Security cameras • Government/Enterprise • Military, Cities, State/Province • Office environment • Retail • Education • Industrial • Oil & Gas, Energy Management (Smart Grid), Manufacturing, Transportation

23. Strategic focus • Vertical focus areas • New product development for specific vertical markets • Expanding channel coverage especially in specific vertical markets • Geographic expansion of all vertical markets • New technology, products and capabilities from Patapsco’s Acquisition • More targeted marketing efforts • Organic growth & Acquisitions • Vertical focus areas • User Experience • Operations efficiency • Innovation

24. Strategic focus • Globalization • Key groups expanded on three continents • R&D; emphasis on software • Test, Verification, Interoperability • Tech Support • Global Sales Engineering & Business Development • New Warehouse & Repair Center in Europe (UK) • Transactions in multiple currencies • Better localization

25. Thank You Questions and Answers.