Conversion Services International Announces Second Quarter Results.

EAST HANOVER, N.J. -- Conversion Services International, Inc. (OTC Bulletin Board: CSII; "CSI"), 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 results of operations for the second quarter and six months ended June 30, 2005. See attached tables.

Revenues for the second quarter increased 14% to $7.4 million from $6.5 million in the second quarter of 2004. Gross profit increased at a higher rate, by 20%, to $2.6 million from $2.1 million in the comparable period last year. The Company incurred greater selling and marketing, research and development, and depreciation and amortization expenses that were largely related to Evoke Software, which the Company sold in July 2005. CSI reported a net loss of $3.3 million, which compares to a net loss of $1.1 million during the second quarter of 2004.

Scott Newman, CSI's President, Chief Executive Officer and Chairman, commented, "Our Global 2000 client base continued to generate growth during the quarter. In the six-month period, revenues increased 21%, and the 28 new consulting engagements that we secured during the quarter should produce continued top-line growth in the second half of the year.

"In addition to organic growth, we expect second-half revenue contribution from our recent acquisitions, which are also strategic in nature. In late July, we acquired McKnight Associates, Inc., a renowned business intelligence and data warehouse consultancy. McKnight expands our client base with such industry leading companies as Coach, Commerzbank, USAA, and France Telecom. As Senior VP of Data Warehousing for CSI, William McKnight's vast experience in the consumer products, retail, telecommunications, and healthcare industries will help support future growth in these key segments. Integrated Strategies, Inc., which we acquired in early August, complements our March 2004 acquisition of DeLeeuw Associates by broadening our merger integration management and business process change practices. The addition of Integrated Strategies should accelerate our ongoing organic business growth in the financial services industry and expand our geographic footprint, especially into the Midwest. Importantly, both companies joined CSI with lean cost structures."

Mr. Newman concluded, "The Evoke divestiture and our recent cost efficient acquisitions should enable us to decrease operating expenses significantly as a percentage of revenues, beginning in the third quarter. In light of our base business and our recent strategic and accretive acquisitions, we are optimistic about CSI's outlook."

About Conversion Services International, Inc.

Conversion Services International, Inc. (CSI) 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 current customers include ADP, Cendant, Coach, Goldman Sachs, Liberty Mutual, Merck, Morgan Stanley, Pfizer, and Verizon Wireless. 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 to increase revenue, the successful integration of our recently acquired companies, expansion of our client base, 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 the CSI's control). CSI undertakes no obligation to update publicly any forward-looking statements.

CONVERSION SERVICES INTERNATIONAL, INC.
                           AND SUBSIDIARIES
           CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                             (Unaudited)


                      Three months ended         Six months ended
                           June 30,                  June 30,
                   ------------------------- -------------------------
                       2005         2004         2005         2004
                   ------------ ------------ ------------ ------------
                                 (Restated)                (Restated)

REVENUE:
 Services          $ 5,417,199  $ 5,516,838  $10,432,492  $ 9,751,309
 Related party
  services           1,075,235      870,667    2,171,637    1,840,554
 Software              387,560      128,523      680,928      128,523
 Support and
  maintenance          496,003            -      928,008            -
 Other                  30,250            -       65,720       57,679
                   ------------ ------------ ------------ ------------
                     7,406,247    6,516,028   14,278,785   11,778,065

COST OF REVENUE:
 Services            3,860,470    3,658,907    7,389,066    6,732,147
 Related party
  services             923,596      718,978    1,935,454    1,475,602
 Software               51,512        1,740       95,962        1,740
 Support and
  maintenance           13,068            -       26,136            -
 Other                       -            -            -        9,436
                   ------------ ------------ ------------ ------------
                     4,848,646    4,379,625    9,446,618    8,218,925

                   ------------ ------------ ------------ ------------
GROSS PROFIT         2,557,601    2,136,403    4,832,167    3,559,140
                   ------------ ------------ ------------ ------------

OPERATING EXPENSES
 Selling and
  marketing          1,566,764      785,943    3,093,987    1,367,368
 General and
  administrative     1,622,275    1,782,127    3,562,410    3,195,079
 Research and
  development          234,445            -      476,121            -
 Depreciation and
  amortization         503,906      102,108      935,362      152,352
                   ------------ ------------ ------------ ------------

                     3,927,390    2,670,178    8,067,880    4,714,799
                   ------------ ------------ ------------ ------------

LOSS FROM
 OPERATIONS         (1,369,789)    (533,775)  (3,235,713)  (1,155,659)
                   ------------ ------------ ------------ ------------

OTHER INCOME
 (EXPENSE)
 Equity in income
  (losses) from
  investments            3,393      (14,486)      46,685      (16,088)
 Other income
  (expense)             (6,335)         455       (8,526)       7,006
 Interest income        33,726        1,429       57,918        1,872
 Interest expense   (1,952,241)    (772,228)  (3,317,095)    (804,781)
                   ------------ ------------ ------------ ------------

                    (1,921,457)    (784,830)  (3,221,018)    (811,991)
                   ------------ ------------ ------------ ------------

LOSS BEFORE INCOME
 TAXES (BENEFIT)
 AND MINORITY
 INTEREST           (3,291,246)  (1,318,605)  (6,456,731)  (1,967,650)

INCOME TAXES
 (BENEFIT)                   -     (244,278)           -     (459,878)

                   ------------ ------------ ------------ ------------
LOSS BEFORE
 MINORITY INTEREST  (3,291,246)  (1,074,327)  (6,456,731)  (1,507,772)

MINORITY INTEREST       20,942            -       51,644            -

                   ------------ ------------ ------------ ------------
NET LOSS           $(3,270,304) $(1,074,327) $(6,405,087) $(1,507,772)
                   ============ ============ ============ ============

    Basic          $     (0.00) $     (0.00) $     (0.01) $     (0.00)
    Diluted        $     (0.00) $     (0.00) $     (0.01) $     (0.00)

Weighted average
 shares used to
 compute net loss
 per share:
    Basic          785,160,730  680,777,170  779,060,270  627,289,684
    Diluted        785,160,730  680,777,170  779,060,270  627,289,684