QSGI, Inc.(fka QSGI)

[smokestack]

Per HDOGTX conversation with the Ceo, yesterday.


Covo w/ QSGIQ CEO

1 Asked about the OS, he said last SEC filing has the OS at 38 Mil!!

2 POR release, court hearing tomorrow he said and told me we will jsut have to see what happens then!!

2 Status of Commons- considered inside info and cannot divulge!

3 Properties, yes they are in the FL corp office and the NJ site is a NEW property.

4. Secured Creditors 100% dealt with, imphatic yes and he even said this was the biggest hurdle!!

5. About KruseCom, it's about being profitabale! Very Similar Business model as QSGI, 3 aspects, Buying/Selling around the globe, Spare Parts, and the Biggest Data Security side.

6. He said that of the few things that led QSGI into BK was the economy at the Time, for example he had Clients such as Goldman Sacks and Merril Lynch who owed the CO very large amounts and they just Didnt pay!

7. He was very excited to have this converstion and glad that we are interested in them!!