August 21, 2006

QSGI Wins Business with Fortune 50 Client for Complete Data Security & Compliance Services

HIGHTSTOWN, NJ—August 21, 2006—QSGI, Inc. (NYSE Arca: QGI) today announced that it has signed a multi-site contract for its full suite of data security and regulatory compliance services with a leading international consumer goods company. The customer, with nearly 200,000 employees worldwide, has chosen QSGI to handle the data security and regulatory compliance requirements for its IT assets across several operating divisions.

“As discussed in our second quarter earnings call, we continue to see strong demand for our higher margin, complete suite of data security services, and we anticipate successfully signing up additional Fortune 500 clients,” stated Marc Sherman, chairman and CEO of QSGI. “This global organization clearly values the benefits and flexibility provided by our unique portfolio of offerings and will rely on us for its data security needs, primarily on-site at multiple locations as well as within QSGI’s facilities.”

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