March 1, 2007

QSGI Takes First Orders for New Audit and Erasure Process for Enterprise Storage Systems

New Service to be Implemented at Data Center for One of the World’s Top Technology Process Outsourcers

HIGHTSTOWN, NJ—March 1, 2007—QSGI, Inc. (OTC:BB QSGI) the only data security and regulatory compliance provider offering a full suite of life-cycle services for a corporation’s entire IT platform, today announced that it has received its first orders for the company’s new client-site audit and data erasure process, which quickly and efficiently audits and erases tens or hundreds of drives in enterprise storage arraysfrom major OEMs, including IBM, EMC, HP, Hitachi, Dell, and Sun. The new customer is one of the world’s top technology process outsourcing companies.

QSGI CEO Marc Sherman commented, “We are very excited about this new audit and erasure process that provides data centers the ability to audit and erase enterprise storage arrays from the major OEMs. Before our process, a typical client had few alternatives available to efficiently and economically ensure data security and regulatory compliance. Such a client would typically scrap the hard drives of these enterprise storage systems, which meant they did not get the full value for their equipment. But with this ongoing service, which we believe is the first of its kind, these clients will now be able to ensure 100% data security and regulatory compliance, while preserving the value of their enterprise storage arrays for subsequent re-marketing and re-use of their equipment. We anticipate a high take-up rate, as there is strong interest in this service from data center operators given the recoverable value of the equipment.”

“This new customer is an existing Data Center Maintenance client—further illustrating the additional cross selling opportunities now available between our Data Security & Compliance Division and our Data Center Maintenance Division. The initial order, which will generate approximately $15,000 in fees for QSGI, we anticipate could represent just the tip of the iceberg for this new service in terms of both the storage arrays for this client, as well as the thousands of similar storage arrays in use across our current customer base. In fact, we have a number of additional quotes with existing clients waiting to close. We also expect we will have the opportunity to process up to 65 more storage arrays for this first client over the course of the year, as these units come off lease, which could add a minimum of $150,000 of additional revenue. Through these new offerings, QSGI is clearly committed to delivering the highest levels of quality and integrity that even the most discriminating data center clients and IT managers require.”

QSGI has the ability to simultaneously erase tens, or even hundreds, of hard drives in storage systems as fast as a single drive. QSGI can achieve sanitizing speeds of 1 terabyte of data in only 15 minutes, while offering data centers complete data security and regulatory compliance at their facilities, and preserving the integrity of the owned or leased hardware for subsequent full re-marketing value recovery. This is especially important for machines that need to be returned to leasing companies in the same condition as when they were shipped new.

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.