QSGI Announces New Business with Major Specialty Electronics Retailer.

HIGHTSTOWN, N.J. -- QSGI INC. (NYSE/Arca: QGI) today announced that it has signed a contract for its full suite of data security and regulatory compliance services with one of the largest specialty retail electronic chains in the U.S. With over 45,000 employees and more than 4,000 locations, this

"We are very pleased to announce this major win for QSGI, with one of the best known names in specialty electronics retailing," stated Marc Sherman, chairman and CEO of QSGI. "Our complete suite of data security services, protecting customers through the lifecycle of their IT assets, is being increasingly sought by firms of all sizes to safeguard critical information and serve their external compliance requirements."

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.