Polymer composites based on charge-transfer complex of phenothiazine and iodine with polystyrene have been prepared in different weight ratios and characterized by FTIR, XRD, mechanical, microstructure and electrical properties (d.c. as well as a.c.). These composites show semiconducting behaviour as the conductivity increases with increasing temperature. Low percolation threshold (10% wt CTC) has been found indicating that processable conducting polymers with improved mechanical properties can be prepared by this method.