August 15, 2007

QSGI Signs Agreement to Re-Market Excess Service and Manufacturing Parts for Global Electronics OEM Headquartered in Europe

HIGHTSTOWN, NJ-August 15, 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 it has entered an agreement to provide data security and compliance services for one of the nations leading physician and healthcare networks, as well as an online postage company.

Marc Sherman, chairman and CEO, stated, "We welcome the opportunity to re-market new electronic manufacturing and service parts for this highly-respected global OEM. Our wholesale remarketing team has exceptional relationships throughout North America, in addition to developed and emerging countries throughout the world, where there is very high demand for these excess parts. In addition to our traditional channels, we plan to re-market product through our new on-line store that we recently acquired."

 

Mr. Sherman continued, "Under the agreement, our two companies have established a revenue share agreement, net of expenses, with better margins than our traditional used hardware remarketing business. In addition to the attractive sales opportunities, this agreement should advance our strategy of bringing the Data Security & Compliance division to profitability on a stand-alone basis by leveraging our existing remarketing team without meaningful increases in overhead."

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. Additional information about the company is available at www.qsgi.com.