Compliance Systems Corporation Reports Third Quarter 2008 Results

Compliance Systems Corporation (OTCBB: COPI), a telecom service company focused on providing compliance technologies and methodologies to the teleservices industry, announced the following fiscal third quarter 2008 financial results.

Revenues for the three months ended September 30, 2008, decreased $28,548 or 5.6% to $480,642 as compared with revenues of $509,190 for the corresponding period in 2007. This decrease in revenues was mainly attributable to lower revenues from the Company’s principal product, TeleBlock^®. We believe certain industries within the Company’s current customer base have contracted due to the current economic environment.

Net loss for the three months ended September 30, 2008, increased $118,033, or 66.4%, to $295,741 as compared with $177,708 for the corresponding period in 2007, despite a decrease $100,800, or 59.0%, in business financing expenses.

Selling, general and administrative ("SG&A”) expenses increased by $206,137, or 77.1%, to $473,638 as compared with $267,501 for the corresponding period in 2007. The increase in SG&A expenses was attributable to various factors, including, but not limited to, increased expenditures for investor relations and investment banking fees and the strategic hiring of three new employees in the following key areas: sales and marketing, information technology and administration. Management views these expenses as necessary long-term investments towards increasing shareholder value. In addition, the agreement by the two executive officers of the Company to a one-year salary reduction expired in June 2008, resulting in increased payroll expense. There also were increases in advertising expenses and employee travel and related expenses, both of which were due to an increased presence at industry-related conferences.

"In light of the recent economic downturn, management had anticipated a decrease in revenues generated from clients in certain hard hit industries,” said Dean Garfinkel, CEO of Compliance Systems Corporation. "However, the Company recently added a Tier 1 telephone carrier distributor that provides service to a significant portion of the Fortune 1000 community. We believe our revenues will increase and our customer base will expand as this carrier begins its commercial rollout of TeleBlock. The Company also is attempting to expand its product line and service offerings by acquiring other entities; negotiations with a wholesale VoIP (Voice-over-Internet-Protocol) transport company have commenced and we are hopeful that a definitive agreement will be signed shortly. In addition, we are actively exploring other potential acquisition targets. As we continue to move forward in this environment, we believe our Company will be better positioned for growth and expansion with a management team that is well equipped to drive our success.”

About Compliance Systems Corporation

Headquartered in Glen Cove, NY, Compliance Systems Corporation (www.callcompliance.com) is a developer of technology-based compliance solutions for the teleservices industry. Its prime focus is ensuring 100% compliance with government "Do-Not-Call” laws through its flagship patented product, TeleBlock®, as well as its associated suite of telecommunication products. The company sells to corporate companies and businesses across a wide-range of industries and sectors. Additional information on the company and/or its suite of products can be obtained at www.callcompliance.com or by calling (888) 674-6774. Call Compliance Inc. is a wholly owned subsidiary of Compliance Systems Corporation (OTCBB: COPI).

Forward-Looking Statements

The forward-looking statements contained herein are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s analysis only as of the date hereof. The company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date thereof.

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