NEWS UPDATE

FOR IMMEDIATE RELEASE - February 16, 2004

COMMUNICATIONS SYSTEMS, INC. TO ACQUIRE IMAGE SYSTEMS CORPORATION

Minneapolis, Minnesota -- February 16, 2004 – Communications Systems, Inc. (AMEX: JCS) and Image Systems Corporation (IMSG.PK) today jointly announced that they have entered into a definitive agreement for Communications Systems (CSI) to acquire all of the outstanding shares of Image Systems for a cash purchase price per share of sixty-four and 3/10ths cents ($.643) representing total cash consideration for Image Systems shareholders of approximately $3 million.

CSI’s proposed acquisition of Image Systems, which has been unanimously approved by the boards of directors of both companies, is subject to approval by Image Systems’ shareholders, as well as other customary conditions, and is expected to be completed in approximately 45 days.

Located in Minnetonka, Minnesota, Image Systems designs, manufactures and markets high-resolution, high bright display solutions and accessories for customers in the medical imaging market, or for customers who have stringent and/or unique display requirements. Since 1988, they have been a premier developer of video graphics products for their customers worldwide.

David Sorensen, Chief Executive Officer of Image Systems commented, "the combination of our industry leading display technologies and CSI's financial strength provides our customer base of approximately 33,000 devices a solid framework for the next generation of display solutions. As the medical imaging market expands into the high resolution, high bright display solutions, we are uniquely positioned to leverage our industry knowledge and reputation across our medical and governmental customers. The partnership with CSI also allows us to stay committed to our existing distribution partners.”

Curtis A. Sampson, Chairman and Chief Executive Officer of CSI, said; "Image Systems fits our overall business strategy of providing guidance and resources to a portfolio of businesses sharing synergistic markets, products and competencies."

Jeffrey K. Berg, President and Chief Operating Officer of CSI, commented, "We view Image Systems joining the CSI family of companies as an extremely positive development that is expected to strengthen CSI's growth outlook going forward. CSI's ability to provide synergistic competencies and financial support will strengthen Image Systems ability to invest into the
growth market of high resolution video display solutions".

About Communications Systems, Inc.
Communications Systems, Inc. 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 network 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. In addition, CSI supplies copper wire and fiber optic structured wiring systems for broadband networks, as well as line filters for digital subscriber line service. CSI also provides network design, training and management services.

Cautionary Statement: From time to time, in reports filed with the Securities and Exchange Commission, in press releases, and in other communications to shareholders or the investing public, the Company may make forward-looking statements concerning possible or anticipated future financial performance, business activities or plans which are typically preceded by the words “believes,” “expects,” “anticipates,” “intends” or similar expressions. For such forward-looking statements, the Company claims the protection of the safe harbor for forward-looking statements contained in federal securities laws. Shareholders and the investing public should understand that such forward-looking statements are subject to risks and uncertainties which could cause actual performance, activities or plans to differ significantly from those indicated in the forward-looking statements. Such risks and uncertainties include, but are not limited to: lower sales to RBOCs and other major customers; competitive products and technologies; our ability to successfully reduce operating expenses at certain business units; the general health of the telecom sector; profitability of recent acquisitions; delays in new product introductions; higher than expected expense related to new sales and marketing initiatives; availability of adequate supplies of raw materials and components; fuel prices; and other factors discuss from time to time in the Company’s filings with the Securities and Exchange Commission.

Contact:
Curtis A. Sampson, Chairman and Chief Executive Officer
Jeffrey K. Berg, President and Chief Operating Officer
Paul N. Hanson, Vice President - Finance

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