QSGI Announces Two Additional IT Services Contracts

QSGI Announces Two Additional IT Services Contracts

HIGHTSTOWN, N.J. and PALM BEACH, Fla., Aug. 20 -- QSGI Inc. (BULLETIN BOARD: QSGI) , the only provider of a full suite of information technology services to help corporations better manage IT assets, data center maintenance expenses, and ensure best practices for data security and regulatory compliance, today announced that its wholly owned subsidiary, Contemporary Computer Services, Inc. ("CCSI") has signed an IT support contract to provide network design, network infrastructure expansion, and ongoing monthly support and maintenance for a large New York school district. QSGI has also signed a contract with a leading provider of insurance products and related services to provide monthly enterprise storage hardware maintenance services.

Marc Sherman, chairman and chief executive officer of QSGI, commented, "These latest agreements are consistent with our strategy to shift our focus away from hardware remarketing to recurring, higher margin services. This latest announcement that we have been selected to provide our network infrastructure services to a large New York school district follows our recent acquisition of CCSI. In addition, we have added another major insurance company to our growing roster of Data Center Maintenance customers. As we build up our client base, a major focus of ours going forward will be cross-selling our services across the organization."

About QSGI

QSGI provides a full suite of information technology services 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 mainframes, midrange servers and PC, to network infrastructure and enterprise storage hardware, the services offered by QSGI are specifically designed to reduce total cost of ownership for IT assets and maximize the clients' return on their IT investment.

For enterprise class hardware in the data center, QSGI offers hardware maintenance services, hardware environment planning and consultation, refurbished whole systems, parts, features, upgrades and add-ons. Additionally, for desktop IT assets, servers and SAN products, QSGI offers a range of end-of-life services that include: automated asset auditing, Department of Defense (DOD) level data destruction, documentation for regulatory compliance, hardware refurbishment with worldwide remarketing or proper IT asset recycling.

Additionally, through its acquisition of Contemporary Computer Services, Inc. (CCSI), an enterprise class IT services provider with an extensive list of corporate, educational, and government customers, QSGI also performs network design, implementation, and monthly maintenance services on corporations' networking infrastructure as well as 24/7 IT monitoring and diagnostics through its North American Network Operating Center (NOC).

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.

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.