September 20, 2006 07:00 ET

TII Network Technologies Announces Appointment of Key Executives:

Martin J. Pucher as Executive Vice President

COPAIGUE, NY -- (MARKET WIRE) -- September 20, 2006 -- TII Network Technologies, Inc. (NASDAQ: TIII), a leading provider of telecommunications products, today announced the strategic reorganization of its marketing and sales organization, including the appointments of Martin Pucher as Executive Vice President and Walter R. Fay as Vice President of Sales and Marketing.

Kenneth A. Paladino, President and Chief Executive Officer, stated: "Our results in the 2006 second quarter and first six months reflect the progress we are making towards achieving our objectives of increasing both revenue and market share, maximizing value for both our customers and our shareholders. My immediate plan is to continue this momentum by organizing our management team to more effectively grow our core business while continuing the focus of the Company on new markets that are at the heart of the Telecomm industry's on-going transformation."

To support these objectives, the Company announced the appointments of two key executives.

Martin Pucher, formerly President of TII's Global Technology Group (GTG), has been appointed the Company's Executive Vice President. Mr. Paladino commented: "I'm excited to have Martin assisting me in developing our strategy and direction. His 18 years of experience and background in technology and business development gives TII additional expertise in the Telco, cable and satellite markets. His broad knowledge of advanced technologies and their application to business will help to propel TII's initiatives in product development, and sales and marketing strategies." Paladino adds, "In his short time with the Company, Martin has demonstrated seasoned leadership skills and has successfully launched our new outside-the-home residential gateway, OutRigger™, which began limited field trials this week." Mr. Pucher will continue to oversee TII's OutRigger™ program, as well as future product initiatives.

Prior to joining TII, Pucher was the founder and CEO of "One 2 One Consulting, Inc.," where he developed digital media, broadband, wireless and Internet technologies, to deliver media products and services to consumers and businesses worldwide. He has worked with companies such as Microsoft, IBM, Corbis, Vulcan Inc., AT&T, and PlayNetworks. He was senior vice president of technology and broadband at Liberty Media's DMX Music and Liberty Digital companies. In addition, Mr. Pucher has strong international business experience, serving on several technology advisory boards, both domestically and in Europe. He has a B.S. Engineering degree from Georgia Tech University.

The Company also announced that Walter R. Fay has been appointed Vice President of Sales & Marketing. Mr. Paladino commented: "Walter is a seasoned telecommunications products sales professional who has a track record of demonstrated excellence in sales, marketing and product development during his 13-year career with our Company. I'm looking forward to his continued success in his new role."

At TII Mr. Fay has served as director of marketing and sales, director of product management, product manager and senior project engineer. His responsibilities have included the development and implementation of strategic business plans, the launching of new products, corporate product management, marketing and sales of all new and existing products, management of the direct sales force and representatives, corporate advertising and product promotions.

Mr. Fay holds a Bachelor of Engineering from the State University of New York at Stony Brook, and an M.B.A. from Polytechnic University. He is also an active member of the Society of Cable Telecommunication Engineers (SCTE), and the Product Development Management Association (PDMA).

About TII Network Technologies, Inc.

TII Network Technologies, Inc., a publicly traded company (NASDAQ: TIII) headquartered in Copiague, New York, designs, produces and markets telecommunication network products, including lightning and surge protection products, network interface devices ("NIDs"), DSL, VoIP and other station electronics products and a multi-service residential gateway system.

Certain statements in this Report are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this Report, words such as "may," "should," "seek," "believe," "expect," "anticipate," "estimate," "project," "intend," "strategy" and similar expressions are intended to identify forward-looking statements regarding events, conditions and financial trends that may affect the Company's future plans, operations, business strategies, operating results and financial position. Forward-looking statements are subject to a number of known and unknown risks and uncertainties that could cause the Company's actual results, performance or achievements to differ materially from those described or implied in the forward-looking statements. These factors include, but are not limited to: exposure to increases in the cost of the Company's products, including increases in the cost of the Company's petroleum-based plastic products, and the limited ability of the Company to raise the selling prices of its products; dependence for products and product components from Pacific Rim contract manufacturers, including on-time delivery that could be interrupted as a result of third party labor disputes, political factors or shipping disruptions, quality control and exposure to changes in costs and changes in the valuation of the Chinese Yuan; dependence on, and ability to retain, its "as-ordered" general supply agreements with its largest three customers and win new contracts; continued dependence on the traditional copper-based telephone operating company ("Telco") market which has been declining over the last several years due principally to the impact of alternate technologies and competition from multi-system operators; the effect of rising interest rates on new housing starts which account for a large percentage of NID sales; the level of inventories maintained by the Company's customers; the ability to market and sell products to new markets beyond its principal market -- the copper-based Telco market; the ability to timely develop products and adapt its existing products to address technological changes, including changes in its principal market; weather and similar conditions, particularly the effect of hurricanes or typhoons on the Company's manufacturing, assembly and warehouse facilities in Puerto Rico and the Pacific Rim; competition in the Company's traditional Telco market and in the new markets the Company is seeking to penetrate; potential changes in customers' spending and purchasing policies and practices; general economic and business conditions, especially as they pertain to the Telco industry; dependence on third parties for certain product development; risks inherent in new product development and sales, such as start-up delays and uncertainty of customer acceptance; the ability to attract and retain technologically qualified personnel; and the availability of financing on satisfactory terms.