November 20, 2009 (FinancialWire) — Compliance Systems Corp. (OTCBB: COPI) released an update on the company’s previously announced intent to acquire Execuserve Corp.

On November 12, 2009, Compliance Systems had entered into a non-binding Memorandum of Understanding to acquire Execuserve. Compliance Systems Corp. believes that upon acquisition of Execuserve, it will be able to leverage its connections within the telemarketing industry to market and distribute Execuserve’s Hire-Intelligence and Hire-Choice software program to more than 56,900 call centers nationwide, which historically have some of the highest rates of employee turnover, averaging more than 300% annually. USA call centers employ approximately 5,219,000 workers nationwide, almost 4% of the U.S. workforce.

The software’s dynamic assessments of prospective job seekers entering the telemarketing industry will assist call center operators in identifying which candidates have the potential to achieve higher rates of success, thus reducing new hire costs and increasing call center performance for the software user.

“The follow up on last week’s meetings and executed MOU are being promptly engaged,” stated Dean Garfinkel, CEO of Compliance Systems Corp.. “I am optimistic about a timely closing, and I am even happier to include in my update that we have confirmed Execuserve’s software capabilities to sustain, and improve, call center employment efficiencies without additional development of the Execuserve software offerings. We believe the market opportunity for the Hire-Intelligence and Hire-Choice software suite is significant when considering that on average each of the 50,000 plus call centers typically hire 3 employees just to maintain one agent position.”

Upon completion of the proposed acquisition of Execuserve Corp., Compliance Systems believes that it should be able to offer a complete solution ready for marketing to an existing call center customer base accustomed with the company’s patented TeleBlock “Do-Not-Call Blocking” system, currently sold by telephone carriers worldwide such as AT&T, Verizon Business and Qwest Communications. While the TeleBlock system assists teleservice professionals to maintain compliance in the highly regulated Do-Not-Call environment by automatically screening and blocking outbound calls against USA and Canadian Do-Not-Call lists, Execuserve’s software suite will offer the potential for improved employee performance and reduced cost. “When bundled together, following the Execuserve acquisition, Compliance Systems believes that it will be able to offer a fully integrated vertical suite of software to call centers that address their most pressing needs, qualified employees and compliance with national Do-Not-Call regulations,” concluded Garfinkel.

Compliance Systems also has delayed the filing of its Quarterly Report on form 10-Q for the quarter ended September 30, 2009 and has filed a notification of late filing on form 12b-5 with this Securities and Exchange Commission. The company anticipates filing its Quarterly Report on form 10-Q no later than November 23, 2009. Call Compliance and Execuserve are currently negotiating a definitive, ongoing acquisition agreement. No assurance can be given that the parties will enter into such an acquisition agreement, that this transaction will be consummated or that consummation of the transaction will result in any benefit to Call Compliance and its shareholders. The transaction, as contemplated, will involve certain cash payments, financial commitments, and restructuring of certain debt of the parties. No assurance can be given that Compliance Systems can obtain the necessary financing on terms favorable to the company, if at all, or that any debt can be restructured on terms that do not adversely impact either of the entities involved. Statistical information contained in this release was obtained from reports published by American Teleservices Association, whose website is www.ataconnect.org.

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