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December 4, 2007

QSGI ANNOUNCES ONSITE DATA SECURITY SERVICES CONTRACT WITH MAJOR FINANCIAL INSTITUTION

HIGHTSTOWN, NJ-December 4, 2007-QSGI, Inc. (OTC:BB QSGI) the only provider of a full suite of information technology services to help corporations better manage hardware assets, maintenance expenses, and ensure best practices for data security and regulatory compliance, today announced it has entered into an agreement to provide onsite data security and compliance services to one of the world’s largest investment banking and retail brokerage firms. QSGI will perform onsite audit, erasure and other security services within this client’s North American data centers.

Marc Sherman, chairman and chief executive officer, commented, “Hard drives under warranty that begin to fail must be fully erased before returning the equipment to the manufacturer in order to preserve sensitive data that may be stored on the hard drive. Shredding or otherwise discarding these failed drives is a costly proposition that can cost the owner upwards of $2,000 per drive. As illustrated by this latest contract, the value of QSGI’s onsite data security and compliance services to the client are substantial. By using QSGI’s services, the end user gets the most secure process in the industry and also saves a significant amount of money annually. Our process allows for the audit, erasure and comprehensive reporting for all hard drives associated with enterprise storage hardware including those within the SANs unit, loose, working or failed. We are seeing the adoption of our services taking hold because of the clear value proposition that we offer and we are very pleased to have signed on this marquee financial institution.”

Mr. Sherman continued, “Initially, we will provide our services on-site using our server suitcase solution at multiple data centers. We will utilize a process that QSGI introduced earlier this year for audit and erasure designed specifically for enterprise storage systems, whereby we can quickly audit and erase tens or hundreds of drives in enterprise storage arrays from major OEMs, including EMC, HP, Hitachi, Dell, Sun and IBM. This volume of work can be done as fast as a single drive. We can achieve sanitizing speeds of 1 terabyte of data in only 15 minutes while providing data centers complete data security and regulatory compliance at their facilities. Our ability to do the work on-site at our clients’ premises eliminates the high risk of data breaches associated with shipping computer equipment off-site.”

Mr. Sherman concluded, “Besides the obvious advantages of QSGI’s audit and erasure capabilities, our process enables our clients to recapture value from their equipment upon re-sale. This is because we do not destroy the systems as is often the case when companies choose to scrap their hard drives and hardware at the end of the life cycle or when equipment comes off lease. As more and more companies seek to avoid the risk of security breaches and to save money in the process, QSGI is becoming the “go to” provider of these services for a growing number of entities, as is evidenced by our expanding customer base of Fortune 1000 clients.”

About QSGI

QSGI provides a full suite of information technology solutions to help corporations and governmental agencies better manage hardware assets, reduce maintenance expenses, build best practices for data security and assure regulatory compliance. With a focus on the entire range of IT platforms - from the PC to the mainframe, the services offered by QSGI are specifically designed to reduce total cost of ownership or IT assets and maximize the clients' return on their IT investment.