Following on the success earlier this year, this Web-to host integration project will offer enhanced access to tried and true university mainframe applications

August 1, 2001, Fort Lauderdale, FL - MODCOMP®, Inc. (www.modcomp.com), a leader in eBusiness and mBusiness technology solutions and a subsidiary of CSP Inc. (NASDAQ: CSPI), announced today that it has been awarded a contract with Cornell University to build a Web-to-host front-end for the university's budgeting, workforce planning and salary improvement applications.

A recognized expert at helping companies leverage their long-term IT investments, MODCOMP will employ its powerful ViewMax® technology to re-engineer the workflow and user interface of three of Cornell's mission-critical, mainframe-based functions. The two-phase project, scheduled for early 2002 deployment, will consolidate functions, streamline views, clarify input requirements and optimize computing and processing resources across the old and new systems, without any modification to the mainframe.

"We have been using our budget and planning mainframe applications successfully for years," said Michael Whalen, Cornell University's Director of Planning Information and Policy Analysis. "While they do a good job of processing data, the programs are hard to learn, cumbersome to use, and are by no means up to today's standards for usability. Because of our past success working with MODCOMP, we knew they could build a user-friendly, browser-based interface that will eliminate training time, reduce data input and navigation errors, and make critical information more accessible and usable to faculty and staff."

"We're excited to be offered another opportunity with Cornell University," said Rob Crigler, MODCOMP's eCommerce division vice president of sales and marketing. "With this project, we leverage Internet technology to create client-side modeling which permits the testing of various budgeting and planning scenarios within the browser before they are integrated into the mainframe application. ViewMax eliminates the need for expensive system replacement, full software rewrites, and error-prone data conversions."

About MODCOMP, Inc.
MODCOMP, Inc., is an international leader in eCommerce integration software and services. For over 30 years, MODCOMP has consistently helped its customers utilize emerging technologies to further mission critical business objectives. The company's eCommerce division is committed to helping its customers take full advantage of rapidly emerging eBusiness and mBusiness opportunities. MODCOMP combines its ViewMax integration software with its consulting and support services to help clients leverage and extend their existing information technology investments to the Web and beyond. A subsidiary of CSP Inc. (NASDAQ: CSPI), MODCOMP, Inc. is headquartered in Ft. Lauderdale, FL and has offices in the U.S., U.K., and Germany. For more information about the company and its products and services, phone MODCOMP headquarters at (800) 322-3287, email info@modcomp.com, or visit MODCOMP on the Web at http://www.modcomp.com.

About CSP Inc.
Based in Billerica, Mass., CSP Inc. (NASDAQ: CSPI) and its subsidiaries develop and market Internet software for eCommerce solutions, image processing software, network management integration services and high performance computer systems. For more information about CSP Inc., call (978) 663-7598 or visit http://www.cspi.com.

CSP Inc. wishes to take advantage of the 'safe harbor' provisions of the Private Securities Litigation Reform Act of 1995 with respect to statements that may be deemed to be forward-looking statements under the Act. Such forward-looking statements may include, but are not limited to, statements regarding the success of the Company's and its subsidiary's products and services. The Company cautions that numerous factors could cause actual results to differ materially from any forward-looking statements made by the Company. Please refer to the section on forward-looking statements included in the Company's Form 10-K filed November 24, 2000 with the Securities and Exchange Commission. To learn more about CSP Inc., consult www.cspi.com.

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Note to Editors: MODCOMP and ViewMax are registered trademarks of MODCOMP, Inc. All product and company names mentioned herein may be trademarks and/or registered trademarks of their respective companies.

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MODCOMP, Inc. contact: Robert Crigler, (678) 417-1731, crigler@modcomp.com

Press contact: Michelle Peloquin Riess, (408) 230-2268, michelle.riess@attbi.com