Minnetonka, MN — November 11, 2008— Communications Systems, Inc. (NASDAQ: JCS) today reported financial results for the three month and nine month periods ended September 30, 2008

The Company reported that its net income for its third quarter ended September 30, 2008 was $2,794,000, or $.32 per diluted share, compared to $1,802,000, or $.20 per diluted share, in the comparable period in 2007. Sales in the 2008 third quarter were $32,683,000 compared $33,091,000 for the same period 2007. Operating income increased to $5,236,000 in the third quarter of 2008 compared to $2,503,000 in the same period in 2007.

For the nine months ended September 30, 2008 the Company reported that its net income was $5,241,000 or $.61 per diluted share, compared to $6,059,000, or $.68 per diluted share, in the same period of 2007. Sales for the nine months increased to $94,295,000 compared to $92,792,000 for the same period in 2007. Operating income for the 2008 nine month period was $8,364,000 compared to $8,559,000 for the same period in 2007.

The Company’s year to date results reflect strong performance by the Company’s Transition Networks subsidiary that posted operating income of $3,043,000 and $7,345,000 for the 2008 three and nine month periods, representing respectively 48 % and 66 % increases over the same periods in 2007. The Company’s 2008 and comparable 2007 results also reflect the application of previously reported revenue recognition policies for services provided by its JDL Technologies subsidiary to the Virgin Islands Department of Education (VIDE). For the nine months ended September 30, 2007, revenues of $2,555,000 were recognized that related to services for VIDE in 2006; this represented approximately $.12 per diluted share of after tax net income reported for that period. For the nine months ended September 30, 2008, revenues of $ 736,000 were recognized that related to services for VIDE in 2007; this represented approximately $.05 per diluted share of after tax net income reported for that period. Finally, the Company’s 2008 operating results for the nine month period were adversely affected by a $2,999,000 non-cash impairment charge taken in the 2008 first quarter in connection with the previously reported termination of JDL’s operations in the Virgin Islands.

Jeffrey K. Berg President and Chief Executive Officer said: “We are pleased with CSIs results for the third quarter and the first nine months of 2008 despite difficult and uncertain economic conditions that are impacting the markets we serve. Transition Networks, our largest business unit has performed exceptionally well this year. Suttle, our second largest business unit, has experienced a decline in revenues compared to 2007 that is largely attributable to softness in the housing sector, but is maintaining good margins and is actively exploring entering new, non-US markets to offset adverse conditions in its current markets.”