In November of 2005 Communications Systems, Inc., a publicly traded company (AMEX: JCS), announced that Transition Networks and MiLAN Technology, both wholly owned subsidiaries, were consolidating operations under the direction of Transition Networks's management. Since then, the two companies have been working to create one company with two industry leading brands. Transition Networks, the industry leader in media conversion technology, combined with MiLAN, a network connectivity hardware provider, form one network solutions hardware manufacturer; offering media converters, fiber network interface cards, switch and wireless products. The two companies - now one - start 2006 as the new Transition Networks.

Transition Networks will continue with their leading innovation in the media conversion market space. But now, a full solution provider, the company will also focus on building the MILAN brand of switching and wireless products. The MILAN brand of media converters will continue to be supported for current customers.

The MILAN brand of switching and wireless products gives Transition Networks an exciting and strategic addition to their product portfolio. The company's new switching solutions include large and small port-count managed and unmanaged switches with optional GBIC, SFP, and fiber gigabit uplink capabilities. The MILAN brand of wireless access products are also a perfect compliment to the rest of Transition's portfolio. With IEEE 802.3af Power-over-Ethernet (POE) wireless access point options, the company can now offer a fully compliant POE solution when coupled with their innovative POE media converter line. Transition is in the process of rolling out plans to market their new switching and wireless access solutions into niche markets where larger manufactures of similar products have not fulfilled customer requests.

To take Transition's full solutions to market, the company has combined sales forces from both companies into one stronger sales force with a broader portfolio of products to offer. Leveraging the relationships with two distinct customer bases, Transition Networks can now better serve customers with more products and solutions, and the customers only need to make one call.

The new brand of MILAN products will have a new marketing campaign to promote the brand. One of these elements includes a revamped web site that offers information, software, and e-commerce capabilities.

Another element of the marketing plan for the Milan brand includes a new advertising campaign to promote the MILAN brand of switching and wireless access products as a product line by Transition Networks. The ads will carry the look of traditional Transition Networks ads, but will have a slightly different feel that will differentiate the MILAN brand.

The integration is seen as a positive move for our customer base; allowing the company to offer more solutions and increase the ease of doing business with the two brands.