QSGI Provides Business Outlook for Fourth Quarter 2008; Reaffirms Expectations for Positive EBITDA & Cash Flow

HIGHTSTOWN, N.J., Dec. 10 -- QSGI Inc. (OTC Bulletin Board: QSGI) the only provider of a full suite of information technology services to help corporations better manage IT assets and data center maintenance expenses, and ensure best practices for data security and regulatory compliance, today provided an update on recent business activities and reaffirmed its expectation to achieve positive EBITDA and cash flow for the fourth quarter of 2008.

Marc Sherman, chairman and chief executive officer of QSGI, commented, "We are pleased to reaffirm our projections of positive EBITDA and cash flow company-wide for the fourth quarter of 2008, as all divisions are now independently generating positive EBITDA. We achieved strong sales within our Data Security & Compliance division for the first two months of the fourth quarter. At the same time, margins are improving due to our recent alliance with an online catalog retailer. Our Data Center Maintenance and Data Center Hardware divisions have been able to build upon prior business development initiatives to provide maintenance services bundled with enterprise hardware sales at attractive prices, especially during the current market environment. Additionally, CCSI, which we acquired in July 2008, is being successfully integrated and is providing strong cross-selling opportunities while generating positive cash flow. As we continue to grow our recurring revenues, increase margins and now turn the corner to positive cash flow company-wide, we look forward to delivering exceptional value for our shareholders."

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.