December 19 , 2005
QSGI Adopts Corporate Governance Best Practices
Measures taken in effort to uphold the highest standards of corporate governance
HIGHTSTOWN, NJ—December 19, 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 implemented additional corporate governance policies as part of its continuing efforts to uphold the highest standards of corporate governance, including:
The formation of a corporate governance charter and the appointment of a corporate governance committee whose responsibilities will include an annual review of the effectiveness of the guidelines as well as ongoing review and evaluation of the Board and its committees
The formation of a corporate compensation charter and the appointment of a corporate compensation committee whose responsibilities will include annual review of the operating goals, compensation and stock options for senior management and board members, as well as a review of the company's stock option plans and other equity-based plans
The formation of initial management recommendations to each of these Corporate Committees to establish guidelines:
– Ensuring that the company is encouraging creation of shareholder value and minimizing shareholder dilution through its executive stock option pricing plan, which may include the issuance of stock options at a premium to existing share prices as well as parameters on annual equity and equity option grants
– Encouraging Board involvement with the company’s customers and vendors, including periodic reviews of customer satisfaction
– Aligning the Board’s economic incentives with the shareholder interests
Marc Sherman, chairman and CEO, stated, “These important enhancements reflect our ongoing efforts to uphold the highest standards of corporate governance, commensurate with the integrity of the fortune 1000 clients we serve, and illustrate our commitment to serving the long-term interests of our shareholders.”
A copy of QSGI’s corporate governance charter and corporate compensation charter, along with a complete listing and biographies of the company’s board members, are available on the investor relation’s section of the company’s website:
http://qsgi.com/investors.htm
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.
