EXHIBIT 99.3

PRESS RELEASE ISSUED OCTOBER 16, 2006 REPORTING EXTENSION OF TIME PERIOD TO OBTAIN COMPLIANCE WITH AMERICAN STOCK EXCHANGE LISTING STANDARDS

October 16, 2006

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

COMMUNICATIONS SYSTEMS, INC. REPORTS ON RECENT DEVELOPMENTS RELATED TO RESOLVING ACCOUNTING ISSUES, MAKING REQUIRED SEC FILINGS AND EXTENSION OF TIME TO COMPLY WITH AMEX CONTINUED LISTING STANDARDS

(Hector, Minnesota) – October 16, 2006 — Communications Systems, Inc. (AMEX: JCS) today provided an update on efforts to resolve previously reported accounting issues and make required Form 10-Q filings with the Securities and Exchange Commission (SEC) that have not been filed, as well as to regain compliance with the continued listing standards of the American Stock Exchange (AMEX).

As previously reported, the Company has not filed SEC Form 10-Q reports for the three months ended March 31, 2006 and the three and six months ended June 30, 2006 (the “2006 Form 10-Q Reports”). The 2006 Form 10-Q Reports have not been filed due to risks and uncertainties arising from a U.S. Department of Justice (DOJ) civil investigation of the Company’s JDL Technologies subsidiary related to work performed for the U.S. Virgin Islands Department of Education (VIDOE) under the federal E-Rate program, as well as the Company’s assessment of uncollected receivables and the related revenue totaling approximately $3.5 million arising from the Company’s work for VIDOE.

Because it has not filed the 2006 Form 10-Q Reports the Company is out of compliance with applicable listing standards of AMEX and its common stock is subject to being de-listed. Based on a plan to regain compliance with AMEX listing standards provided by the Company in early July 2006, AMEX notified the Company on July 6, 2006 that it would not take any action to de-list the Company’s stock before September 6, 2006.

On September 6, 2006 the Company requested that AMEX staff defer taking any action to de-list the Company’s stock for a further period of time while the Company continued its efforts to regain compliance with AMEX listing standards. And, on September 29, 2006 the Company supplied an amended plan with respect to achieving such compliance by November 30, 2006. In its amended plan, the Company explained it believed a further extension would provide sufficient time to complete management’s assessment of the VIDOE related receivables and revenues totaling approximately $3.5 million and the pending DOJ investigation for purposes of finalizing the 2006 Form 10-Q Reports. During this time period it is also expected the Company’s Audit Committee will complete its independent review of certain matters arising from the DOJ investigation. Based on achieving these objectives, Company management believes it is reasonably likely that on or before November 30, 2006 the Company will be able to

complete and file the 2006 Form 10-Q Reports, as well as the Form 10-Q Report for the nine months ended September 30, 2006.

By letter dated October 9, 2006 the Company received notification from AMEX that the Company’s amended plan and supporting documentation (the “Revised Plan”) made a reasonable demonstration of the Company’s ability to regain compliance with AMEX’s continued listing standards. Based upon the Revised Plan, AMEX staff, subject to certain conditions, granted the Company an extension until November 30, 2006 to file the 2006 Form 10-Q Reports (the “Extended Plan Period”). These conditions relate to public disclosure of AMEX’s October 9, 2006 decision, continued updates of AMEX staff with regard to the initiatives described in the Revised Plan and continued oversight and assessment by AMEX staff. In its letter AMEX also stated it expected the Company to be in compliance with the continued listing standards by November 30, 2006 and that failure to achieve compliance by such date would “likely result” in the initiation of delisting proceeds by AMEX staff.

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 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; loss contingencies arising from litigation and investigations and other factors discuss from time to time in the Company’s filings with the Securities and Exchange Commission.

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