Article: QSGI Reports 54% Increase in Gross Profit on 27% Year-over-Year Increase in First Quarter Revenue; 107% Increase in Data Security & Compliance Division Revenue.

HIGHTSTOWN, N.J. -- QSGI INC. (NYSE Arca: QGI) today reported financial results for the first quarter ended March 31, 2006.

First Quarter 2006 Financial Highlights (year-over-year):

Total revenue increased 26.9% to $9.3 million

--Data Security & Compliance division revenue increased 107.3% to $4.8 million

--Data Center Maintenance division revenue increased 35.1% to $1.0 million

Gross margin expanded 410 basis points to 23.3%

--Data Security & Compliance gross margin more than doubled to 17.3%

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