MODCOMP and NTT Europe Announce E-Commerce Relationship

ViewMax (TM) Software to be Offered to Telecommunication Company's European Customer Base

---

February 17, 1999, Ft. Lauderdale, Florida -- MODCOMP, Inc., a subsidiary of CSP Inc. (NASDAQ:CSPI) and NTT Europe (NTTE), a subsidiary of NTT -- the world's largest telecommunication services provider, today announced a partnership which combines the two companies' expertise to offer enhanced intranet and extranet solutions to NTTE customers.

NTTE, which provides networking integration and Internet services to the European marketplace, will now use MODCOMP's ViewMax host-to-web application server software product to offer risk-free integration of corporate mainframe business applications using IP (Internet) technologies. By offering ViewMax, NTTE is building intranets and extranets for customers including JVC (U.K.) Ltd.

"As a major importer and distributor of audio, video and television products, JVC distributes thousands of high quality catalogs and technical data sheets to our customers," stated Gary Broadbent, Technical Manager at JVC (U.K.). "Not only does JVC see the Web as an effective way to increase our presence in the market and reduce sales costs, it also provides our customers with real-time access to product pricing, availability and ordering."

With ViewMax, JVC has created a Web-based E-commerce front end, which seamlessly integrates into its existing CICS-based order processing application residing on an IBM mainframe. JVC has a no-risk investment preservation solution, which allows it to offer dealers a convenient one-stop source for product information, order placement, product availability and order tracking.

"Electronic commerce using Internet technology offers huge potential for businesses, but to be successful, it will have to fit into companies' existing IT frameworks," stated Dr. Shuji Tomita, Managing Director of NTTE. "While a 'clean slate' approach is appealing in theory, in practice, most organizations do not want the expense and disruption of developing completely new business applications. ViewMax enables them to rapidly integrate Web technology into their current IT infrastructure."

"MODCOMP is pleased to partner with a company as distinguished as NTTE," added Brian Miller, General Manager of MODCOMP U.K. "With NTTE's networking and integration experience and our ViewMax tool set, we look forward to offering this solution to NTTE's entire European customer base."

About NTTE
NTT Europe is a wholly owned subsidiary of NTT, the leading telecommunication services provider and one of the world's largest companies. Headquartered in London, NTTE offers a wide range of services including managed bandwidth, managed frame relay and a private IP network service. System Integration services include the design and installation of all aspects of LAN, VPN, intranet and extranet networking within a bilingual environment. NTTE European offices are located in Paris, Dusseldorf and Brussels.

About MODCOMP Inc.
Founded in 1970, MODCOMP has been a leader in providing system integrated solutions for data acquisition, networking and high speed communications for a wide variety of applications in markets as diverse as government/aerospace, energy, utilities, retail and data communications. MODCOMP's third-party relationships and in-depth knowledge are combined to develop customized solutions for application integration in the e-commerce markets. MODCOMP European offices are located in the U.K., France and Germany. MODCOMP, Inc. is a wholly owned subsidiary of CSP Inc.

About CSP Inc.
CSP Inc. was founded in 1968 with specific strengths in digital signal processing and the design and manufacture of high-performance multiprocessing systems for real-time applications in defense and commercial markets. CSP Inc. also serves the material handling industry with its product line of over the belt bar-code readers. Scanalytics, Inc. a wholly owned subsidiary of CSP Inc., is focused on hardware and software products for scientific imaging. MODCOMP, Inc., a wholly owned subsidiary of CSP Inc., sells real-time process control systems, Internet software solutions, systems integration and network services.

To learn more about CSP Inc., consult www.cspi.com.
To learn more about MODCOMP, Inc., consult www.modcomp.com.
To learn more about Scanalytics, Inc., consult www.scanalytics.com.

Corporate Headquarters:
MODCOMP, Inc.
Tel: +1 954 974 1380
Fax: +1 954 977 1900
E-mail: info@modcomp.com
www.modcomp.com

Internet Products Group, U.K. Operations:
Brian Miller - General Manager
Modular Computer Services, Inc.
Tel: +44 1344 484400
Fax: +44 1344 484333
E-mail: info@modcomp.co.uk
www.modcomp.co.uk

Contact for NTTE:
Hiroaki Kodera - Manager Corporate Planning
NTT Europe Ltd.
Level 19, City Tower
40 Basinghall St.
London EC2V 5DE, U.K.
TEL +44-(0)171-256-7151
FAX +44-(0)171-256-7997

Contact for JVC (UK):
Gary Broadbent - Technical Manager Service and Engineering Division
JVC Business Park
14 priestly Way
London NW2 7BA
TEL +44 (0)181-450-3282
FAX +44 (0)181-452-2534

###

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

99-1

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