Constellation Announces Intent to Sell

News Release

Contact: Heidi Thom P. 952-838-6706 E. [email protected]

FOR RELEASE AT 10:00 A.M. CDT – JULY 28

Constellation Announces Intent to Sell Health IT Business to JDL Technologies

Minneapolis – July 28, 2016 – Constellation, Inc., today announced it has entered into a letter of intent to sell its Health Information Technology (IT) business unit to JDL Technologies, Inc., a Communications Systems, Inc. (CSI) company. The proposed transaction is subject to due diligence and the negotiation and execution of a definitive purchase agreement. The parties expect the transaction to close in early October 2016. Terms of the proposed transaction were not disclosed.

“The sale of our Health IT business unit will facilitate our shift to a partner strategy that will allow us to deliver our vision to be a collective of companies that helps physicians and other providers navigate the increasingly complex health care environment with the ultimate goals of better quality care and a better patient experience,” said Bill McDonough, president and CEO of Constellation. “We are confident our Health IT customers will be well served by JDL Technologies, which is dedicated to information technology and to health IT specifically.”

Constellation’s Health IT business employs about 30 people in the Twin Cities area. JDL Technologies expects to retain substantially all of Constellation’s Health IT staff as JDL Technologies expands its presence in the Twin Cities and continues service to Constellation’s Health IT customers, most of whom are in the Midwest.

1 “The acquisition of Constellation’s Health IT business would provide a strong foundation for the expansion of JDL HealthTech services in the Midwest, one of the regions we have targeted for growth,” said Scott Fluegge, president and general manager of JDL Technologies. “The skills and industry knowledge of the Constellation Health IT team would enable us to continue building a meaningful presence here.”

About Constellation Minneapolis-based Constellation is a holding company of policyholder-owned insurers and other organizations providing medical liability insurance and services that support physicians and other health care providers. Through partnerships offering solutions that help providers deliver better quality patient care, a better patient experience and lower costs of care, Constellation, founded in 2012, aims to become a leader in health care provider support and risk solutions. For more information, visit www.ConstellationMutual.com.

About JDL HealthTech, a division of JDL Technologies JDL HealthTech delivers services that enable healthcare providers to better manage their practices, achieve and maintain HIPAA compliance with HIPAA Security and HIPAA Privacy Rules, avoid violations and data breaches, keep their systems up to date and running smoothly, and take advantage of new and emerging technologies. JDL is a credentialed Trustmark Managed Service Provider and one of the 2016 Elite 150 Managed Service Providers in North America, 2016 Solution Provider 500, and 2015 Fast Growth 150 as ranked by The Channel Company. Healthcare providers and other clients are supported through the company’s HIPAA-compliant Managed Service Operations Center. For more information, visit www.JDLHealthTech.com. JDL HealthTech is a division of JDL Technologies, a Communications Systems, Inc. company (NASDAQ: JCS).