QSGI Announces Two Additional IT Services Contracts

    HIGHTSTOWN, N.J. and PALM BEACH, Fla., Aug. 20 /EMWNews/

-- QSGI Inc. (OTC 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 http://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.