Conversion Services International, Inc., ("CSI") reported its net income for the three months ended September 30, 2009 of $1.3 million. Net income attributable to common stockholders was $1.2 million, or $0.01 per share. In the third quarter of 2008, the Company reported a net loss of $4.2 million and a loss of $4.4 million, or $0.04 per share, attributable to common stockholders.

Revenues for the third quarter of 2009 were $8.1 million, representing an increase of $3.1 million, or 61.7%, from $5.0 million reported in the same period a year ago. Gross profit for the current quarter of $2.9 million, or 36.6% of revenues, increased by $1.6 million as compared to gross profit of $1.3 million, or 25.7% of revenues for the three months ended September 30, 2008.

For the nine months ended September 30, 2009, revenues were $17.7 million, which represents a $3.4 million, or 23.8%, increase from $14.3 million in the comparable prior year period. Gross profit for the nine months year-to-date in the current year of $4.7 million, or 26.3% of revenues, increased by $1.4 million as compared to gross profit of $3.3 million, or 23.2% of revenues, during the prior year period.

CSI reported a net loss for the nine month period ended September 30, 2009 of $0.4 million and a loss of $0.9 million, or $0.01 per share, attributable to common stockholders. For the nine month period ended September 30, 2008, the Company reported a net loss of $8.4 million and a loss of $8.9 million, or $0.08 per share, attributable to common stockholders. On a fully diluted, per share basis, the loss in the first nine months of 2009 was $0.01 per share versus a loss of $0.08 per share for the same period in 2008.

Lori Cohen, president and chief executive officer of CSI, stated, "We have focused our efforts in 2009 on generating more profitable business, and reducing or eliminating low margin business, which is illustrated by the 3.1% point increase in our gross profit percentage for the nine month period ended September 30, 2009, as compared to the prior year period. Our improved financial results in 2009 have allowed us to strengthen our company by reducing our debt and improving our balance sheet. Although we are pleased with our results so far this year, we must strive to maintain this positive trend and our efforts to continue to be profitable, further strengthen our balance sheet and, importantly, increase shareholder value."

About Conversion Services International, Inc.

Conversion Services International, Inc. (CSI, OTC Bulletin Board: CVNS) is a leading provider of professional services focusing on strategic consulting, data warehousing, business intelligence, business process reengineering, as well as integration and information technology management solutions. CSI offers an array of products and services to help companies define, develop, and implement the warehousing and strategic use of both enterprise-wide and specific categories of strategic data. CSI's customers include ADP, AmerisourceBergen Specialty Group, Coach, Commerzbank, Goldman Sachs, Liberty Mutual, Merck, Morgan Stanley, National Medical Digital Archive, Nikon USA and Pfizer. Information about CSI can be found on the web at http://www.csiwhq.com or by calling its corporate headquarters at 888-CSI-5036.

Note on Forward-Looking Statements

Except for the historical information contained herein, this press release contains, among other things, certain forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. Such statements may include, without limitation, statements with respect to CSI's plans, objectives, expectations and intentions and other statements identified by words such as "may," "could," "would," "should," "believes," "expects," "anticipates," "estimates," "intends," "plans" or similar expressions. These statements are based upon the current beliefs and expectations of CSI's management and are subject to significant risks and uncertainties, including the ability of CSI to be in compliance with all applicable American Stock Exchange continued listing requirements, the ability to maintain revenue growth, the ability to locate and acquire other businesses and to successfully integrate such acquisitions, the ability to decrease operating expenses, and those detailed in CSI's filings with the Securities and Exchange Commission. Actual results may differ from those set forth in the forward-looking statements. These forward-looking statements involve certain risks and uncertainties that are subject to change based on various factors (many of which are beyond CSI's control). CSI undertakes no obligation to update publicly any forward-looking statements.

    Investor Relations:
    Conversion Services International, Inc.
    973-560-9400
    investorrelations@csiwhq.com

    Media Contact:
    Tracee Lee Beebe
    Marketing & Communications
    Conversion Services International, Inc.
    973-560-9400
    tbeebe@csiwhq.com

Financial Tables to Follow

                    CONVERSION SERVICES INTERNATIONAL, INC.
                                AND SUBSIDIARIES
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                                  (Unaudited)
                                                September 30,   December 31,
                                                     2009           2008
                                                -------------   ------------
    ASSETS
    CURRENT ASSETS
      Cash                                          $31,473       $338,240
      Accounts receivable, net                    4,661,597      3,440,810
      Accounts receivable from related
       parties, net                                 398,542        284,028
      Prepaid expenses                               87,042        140,493
                                                     ------        -------
          TOTAL CURRENT ASSETS                    5,178,654      4,203,571
                                                  ---------      ---------

    PROPERTY AND EQUIPMENT, at cost, net             41,880         68,536

    OTHER ASSETS                                    116,473        306,778

                                                 ----------     ----------
          Total Assets                           $5,337,007     $4,578,885
                                                 ==========     ==========

    LIABILITIES AND STOCKHOLDERS' DEFICIT
    CURRENT LIABILITIES
      Line of credit                             $3,075,964     $2,349,920
      Short term notes payable                      600,000      1,384,811
      Accounts payable and accrued expenses       2,049,946      1,503,145
      Deferred revenue                              272,236        159,177
      Related party note payable                    109,113        102,796
                                                    -------        -------
          TOTAL CURRENT LIABILITIES               6,107,259      5,499,849

    Long-term debt, net of current portion          500,000              -
                                                    -------            ---
        Total liabilities                         6,607,259      5,499,849
                                                  ---------      ---------

    Convertible preferred stock, $0.001 par
     value, $100 stated value, 20,000,000
     shares authorized

      Series A convertible preferred stock,
       19,000 shares issued and outstanding
       at September 30, 2009 and December 31,
       2008, respectively                         1,393,332      1,108,332

    COMMITMENTS AND CONTINGENCIES                         -              -

    STOCKHOLDERS' DEFICIT
      Common stock, $0.001 par value,
       300,000,000 shares authorized;
        121,072,124 and 119,594,463 issued
        and outstanding at September 30,
        2009 and December 31, 2008,
        respectively                                121,072        119,594
      Series B convertible preferred stock,
       20,000 shares issued and outstanding
       at September 30, 2009 and December 31,
       2008, respectively                         1,352,883      1,352,883
      Additional paid in capital                 68,381,656     68,575,918
      Treasury stock, at cost, 1,145,382
       shares in treasury as of September 30,
       2009 and December 31, 2008,
       respectively                                (423,869)      (423,869)
      Accumulated deficit                       (72,095,326)   (71,653,822)
                                                -----------    -----------
          Total Stockholders' Deficit            (2,663,584)    (2,029,296)
                                                 ----------     ----------

          Total Liabilities and Stockholders'
           Deficit                               $5,337,007     $4,578,885
                                                 ==========     ==========


                    CONVERSION SERVICES INTERNATIONAL, INC.
                                AND SUBSIDIARIES
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
               FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30,
                                  (Unaudited)

                          For the three months       For the nine months
                           ended September 30,       ended September 30,
                         -----------------------  ------------------------
                            2009         2008         2009         2008
                         ----------   ----------  -----------  -----------

    REVENUE:
      Services           $7,011,285   $4,235,803  $15,184,707  $11,935,127
      Related party
       services             531,142      527,272    1,567,211    1,741,596
      Reimbursable
       expenses             410,470      186,158      855,427      498,407
      Other                 108,345       37,540      126,905      152,238
                            -------       ------      -------      -------
                          8,061,242    4,986,773   17,734,250   14,327,368
    COST OF REVENUE:
      Services            4,214,161    2,980,122   10,692,230    8,758,582
      Related party
       services             465,555      505,805    1,408,607    1,631,099
      Consultant
       expenses             434,546      219,158      961,518      618,985
                            -------      -------      -------      -------
                          5,114,262    3,705,085   13,062,355   11,008,666
                          ---------    ---------   ----------   ----------
    GROSS PROFIT          2,946,980    1,281,688    4,671,895    3,318,702
                          ---------    ---------    ---------    ---------

    OPERATING EXPENSES
      Selling and
       marketing            728,847      898,149    2,287,269    2,587,481
      General and
       administrative       724,337      936,650    1,977,774    3,045,078
      Goodwill
       impairment                 -    3,255,879            -    4,636,266
      Depreciation and
       amortization          25,108       62,405       81,512      224,074
                             ------       ------       ------      -------
                          1,478,292    5,153,083    4,346,555   10,492,899
                          ---------    ---------    ---------   ----------
    INCOME (LOSS) FROM
     OPERATIONS           1,468,688   (3,871,395)     325,340   (7,174,197)
                          ---------   ----------      -------   ----------

    OTHER INCOME (EXPENSE)
       Equity in (losses)
        earnings from
        investments               -         (110)    (103,298)      12,876
       Loss on
        extinguishment of
        debt                      -            -            -     (553,846)
       Interest income
        (expense), net     (176,070)    (340,267)    (663,546)    (682,447)
                           --------     --------     --------     --------
                           (176,070)    (340,377)    (766,844)  (1,223,417)
                           --------     --------     --------   ----------
    INCOME (LOSS) BEFORE
     INCOME TAXES         1,292,618   (4,211,772)    (441,504)  (8,397,614)
    INCOME TAXES                  -            -            -            -

                          ---------   ----------     --------   ----------
    NET INCOME (LOSS)     1,292,618   (4,211,772)    (441,504)  (8,397,614)
    Accretion of
     issuance costs
     associated with
     convertible
     preferred stock        (95,000)     (95,000)    (285,000)    (285,000)
    Dividends on
     convertible
     preferred stock        (45,000)     (54,078)    (135,000)    (167,779)
                            -------      -------     --------     --------
    NET INCOME (LOSS)
     ATTRIBUTABLE TO
     COMMON
     STOCKHOLDERS        $1,152,618  $(4,360,850)   $(861,504) $(8,850,393)
                         ==========  ===========    =========  ===========

    Earnings per share:
      Basic                   $0.01       $(0.04)      $(0.01)      $(0.08)
      Diluted                 $0.01       $(0.04)      $(0.01)      $(0.08)

    Shares used in
     calculation of
     earnings per
     share:
      Basic             119,895,174  117,909,029  119,813,903  114,348,981
      Diluted           133,651,512  117,909,029  119,813,903  114,348,981

SOURCE Conversion Services International, Inc.

http://www.csiwhq.com