December 12 , 2005

QSGI Signs Three New Data Security & Regulatory Compliance Customers

HIGHTSTOWN, NJ—December 12, 2005—QSGI INC. (PCX: QGI), 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 signed three new customers for its data security and regulatory compliance services:

– A premier transaction processing company providing fulfillment, support, and managed data services

– One of North America’s leading branded and value-added food companies

– A leader in business and leisure travel

Marc Sherman, chairman and CEO, stated, “Corporate America is rapidly awakening to the regulatory, business and financial liabilities associated with their old IT equipment. Yet according to IDC, less than 37 percent of companies have any formal PC recycling or end-of-life policy, and clearly even fewer are employing best practices in data security and regulatory compliance. As the only company that will indemnify its clients from liability related to end-of-life technology, these client acquisitions are a good indication that QSGI is addressing the growing demand for these services. The traction we are gaining within the Fortune 1000 marketplace is a direct result of product and service enhancements made during 2005, and each of these new clients represents a sizeable recurring revenue opportunity that will gradually ramp up throughout the year. We are in discussions with numerous Fortune 500 companies and are extremely encouraged by the outlook for 2006.”

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.