TII Network Technologies' Board of Directors Elects Kenneth A. Paladino President, Chief Executive Officer and Director

TII Network Technologies, Inc. (NASDAQ: TIII), a leading provider of telecommunications network protection and management products, today announced that the Board of Directors has elected Kenneth A. Paladino as President, Chief Executive Officer and Director. The announcement was made by Charles H. House, Chairman of the Board of Directors. Mr. Paladino succeeds Timothy J. Roach, who retired on August 14, 2006 in a planned transition.

Mr. Paladino, 49, has been Chief Operating Officer since 2005 and Chief Financial Officer of TII Network Technologies, Inc. since 2000. Previously, he was Chief Financial Officer, Vice President of Finance and Treasurer of EDO Corporation (NYSE: EDO), Controller of LNR Communications, Inc. and a Senior Auditor with KPMG Peat Marwick. He holds a Bachelor of Science Degree in Accounting from Villanova University and is a Certified Public Accountant.

Commenting on his appointment, Mr. Paladino said, "I am excited about leading TII Network Technologies as CEO at this stage in the Company's development. I look forward to working with our management to increase both revenue and market share."

Chairman House added: "We are pleased to welcome Ken Paladino as TII Network Technologies' new President, Chief Executive Officer and Director. In addition to his superb financial management expertise, Ken has brought outstanding business management and leadership skills to TII Network Technologies which has materially helped us to achieve positive results since 2004 and that are continuing into 2006. Not only is he a terrific executive with a superb record of accomplishment, he also shares TII's vision and strategic direction and our commitment to providing the highest-quality products, with cost-effective performance and innovative features that meet articulated market needs. His accomplishments and leadership skills, amply demonstrated during his tenure as the Company's Chief Operating Officer, mesh well with the new challenges and opportunities facing our Company.

About TII Network Technologies, Inc.

TII Network Technologies, Inc., a publicly traded company (NASDAQ: TIII) headquartered in Copiague, New York, is a proven technology leader specializing in providing the communications industry with innovative network protection and management products, including station protectors, network interface devices, DSL protectors, filters and splitters, power, data-line and home networking protectors and a multi-service residential gateway, as well as creative, custom design solutions to meet customers' individual requirements. Additional information can be found at http://www.tiinettech.com.

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 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 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; the ability to fulfill its growth strategies; the ability to maintain listing of the Company's Common Stock on the NASDAQ Capital Market and the availability of financing on satisfactory terms.