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CSI ANNOUNCES CABLE TELEVISION RIGHTS OFFERING AND INCREASE IN QUARTERLY DIVIDEND

 CSI ANNOUNCES CABLE TELEVISION RIGHTS OFFERING
 AND INCREASE IN QUARTERLY DIVIDEND
 HECTOR, Minn., May 15 /PRNewswire/ -- At its annual meeting today, Communications Systems, Inc. (NASDAQ: CSII)(CSI) announced that it intends to make a rights offering to its shareholders enabling them to participate in a new cable television venture jointly sponsored by CSI and Hector Communications Corporation (NASDAQ: HCCO) (HCC). The venture, North American Communications Corporation (NACC), will focus on developing, acquiring and operating cable television systems in smaller communities in Minnesota and Wisconsin.
 CSI will contribute $500,000 and HCC will contribute $250,000 as initial capital to the corporation. Additional capital is expected to be raised through a rights offering to both CSI and HCC shareholders. In the rights offering each company will offer its respective shareholders the right to purchase one share of NACC stock at a purchase price of $1 per share for every two shares of CSI of HCC stock. The rights will be non-transferable, but shareholders will be given pro rata the right to purchase additional shares under rights not exercised by other shareholders. The rights offering, which will be by means of a prospectus, is expected to begin in July, 1992. The record date for the rights offering has not yet been determined.
 Curtis A. Sampson, CSI's chairman and CEO stated that, "CSI and HCC have combined expertise in developing, acquiring and operating cable television systems. We want to give CSI and HCC shareholders the right to participate in a venture which will apply this expertise to current opportunities in the cable television business."
 NACC is currently developing a CATV system in Hudson Township, Wis., a community near the Minneapolis/St. Paul metropolitan area having about 1,000 homes. The system will begin offering cable television service in June, 1992. In addition, NACC has agreed in principle to acquire a franchise to build a cable television system serving Garrison, Minn. and several surrounding townships, an area on the west shore of Lake Mille Lacs having approximately 700 to 800 residential units. NACC is not committed to develop or acquire any other cable television systems and no assurance can be given that additional systems will be acquired or developed.
 The company also announced today that the company's board of directors has authorized an increase in the regular quarterly cash dividend from $.08 to $.09 per share. The next quarterly dividend will be distributed on July 1, 1992, to shareholders of record on June 20, 1992.
 At the shareholders' meeting, CSI shareholders re-elected Sampson and James O. Ericson as directors to serve for a three-year term expiring at the Annual Meeting of Shareholders in 1995. In addition, the shareholders approved an employee stock option plan providing for the grant of options to acquire up to 200,000 shares of CSI common stock.
 CSI is headquartered in Hector and is principally engaged in the manufacture and sale of connecting devices for telephone equipment.
 -0- 5/15/92
 /CONTACT: Curtis A. Sampson, Paul N. Hanson, or Avis J. Johnson, 612-848-6231, all of CSI/
 (CSII) CO: Communications Systems, Inc. ST: Minnesota IN: TLS SU: DIV


AL -- MN005 -- 0734 05/15/92 12:10 EDT
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Date:May 15, 1992
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