QSGI Reports 4Q07

HIGHTSTOWN, N.J. and PALM BEACH, Fla. -- QSGI, Inc. (BULLETIN BOARD: QSGI), the only provider of a full suite of information technology solutions to help corporations better manage hardware assets, maintenance expenses, and ensure best practices for data security and regulatory compliance, today reported financial results for the three and twelve months ended December 31, 2007.

Recent Developments:

Mr. Sherman chairman and chief executive officer of QSGI, commented, "We are pleased to report that our Data Center Maintenance division continues to play an increasing role in our overall business and accounted for $1.7 million in revenue in the fourth quarter of 2007, up from $1.3 million in the comparable period in 2006. We continue to expand our maintenance capabilities beyond the division's core strength in mainframes and now service mid-range IBM p-Series, i-Series, x-Series, HP and Sun servers. Additionally we have expanded our capabilities and client base in enterprise class storage, disk and tape. This division brought in $6.3 million in revenue for the year versus $4.8 million in 2006, and maintained strong gross margins in the mid 60-percent range. The recurring nature of Data Center Maintenance contracts and high margins make this an important contributor to QSGI's growth and profitability. We continue to gain traction in the marketplace and signed on seven new customers during the fourth and first quarters including two major insurance providers and Fortune 100 healthcare/consumer products company. As we continue to add resources to ensure this growth continues, our pipeline is robust and we look forward to announcing meaningful client wins in the months ahead."

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