July 31, 2006

QSGI Announces Three New Data Security & Compliance Customers

HIGHTSTOWN, NJ—July 31, 2006—QSGI, Inc. (NYSE Arca: QGI) today announced that it that it has signed three new customers for its full suite of data security and regulatory compliance services, as follows:

– A leading, private outdoor apparel and sporting goods retailer
– The Northeast operations of a large, global automotive manufacturer
– A leading provider of credit and information reporting services

“We are very pleased to announce these new customer wins with several major, well-known suppliers of premium products and services in the U.S.,” stated Marc Sherman, chairman and CEO of QSGI. “Like our existing clients, these companies understand the increasing threats to data security inherent in business today and have turned to QSGI for our complete suite of data security and compliance services – both at our facilities and on-site at the clients’ operations. In particular, being chosen by a firm that handles personal data and credit information proves that we are truly qualified as best of breed, setting us apart as an industry leader.”

About QSGI
QSGI is the only data security and regulatory compliance provider offering a full suite of end-of-life and other life-cycle services for a Fortune 1000 corporation’s and government client’s entire information technology (IT) platform. QSGI offsets its clients’ expenses through its value-added remarketing program. Prior to resale, the company utilizes its proprietary Department of Defense (DOD) level certified data sweep to eliminate otherwise recoverable data. QSGI reduces its clients' potential liability by ensuring regulatory and environmental compliance for IT products. QSGI also maintains and provides services on enterprise-class hardware, including mainframes, midrange servers, tape storage products and disk storage products. Given the sensitive nature of the company’s client relationships, it does not provide the names of its clients.

Statements about QSGI’s future expectations, including future revenues and earnings, and all other statements in this press release other than historical facts are ‘forward-looking statements’ within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Litigation Reform Act of 1995. QSGI intends that such forward-looking statements involve risks and uncertainties and are subject to change at any time, and QSGI’s actual results could differ materially from expected results. QSGI undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances