Conversion Services International Raises $4,000,000 To Facilitate Retirement of Debt

EAST HANOVER, N.J. (March 6, 2007) - - Conversion Services International, Inc. (AMEX: CVN), a premier professional services firm focused on delivering the value in business intelligence, data warehousing and data management solutions to Global 2000 organizations and other businesses, today announced it issued a 10% convertible unsecured note to private investors for gross proceeds of $4,000,000. The Company anticipates the net proceeds from the offering will be used mostly for the retirement of debt, as well as general corporate purposes. Under the terms of the note, the note will automatically convert into 13,333,333 shares of the Company’s common stock upon the effectiveness of an Information Statement on Schedule 14C to be filed with the Securities and Exchange Commission in March 2007. The investors were also issued a warrant to purchase 13,333,333 shares of the Company’s common stock at $0.33 per share.

The common stock and warrants to purchase common stock have not been registered under the Securities Act of 1933, as amended, or under any state securities law, and may not be offered or sold in the United States (or to a U.S. person) absent a registration statement or exemption from the registration requirements of the Securities Act of 1933, as amended, and applicable state laws. This announcement does not constitute an offer to sell, nor is it a solicitation of an offer to buy, these securities.

According to Scott Newman, CSI’s president, chief executive officer and chairman, “By retiring a significant portion of our debt, CSI has furthered its goal of achieving a strong and healthy balance sheet. This considerable strengthening of our balance sheet puts CSI on much better financial footing going forward.”
 

About Conversion Services International, Inc.

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