MODCOMP Enters Financial IT Services Market with Strategic Acquisition of Sipher Software and Sipher Holdings, LTD.

Purchase Includes Xport Message Oriented Middleware Product as well as Existing Customer Base and Continuing Service Contracts

Fort Lauderdale, FL, July 9, 2002 - MODCOMP®, Inc. (www.modcomp.com), a leading architect of legacy extension solutions and a subsidiary of CSP Inc. (NASDAQ: CSPI), announced today the purchase of Sipher Software and Sipher Holdings Limited by MODCOMP, UK. This tactical purchase plays a key role in expanding MODCOMP’s growing IT professional services organization, and aligns the company with some of the largest and best-known names in the financial services market including Citibank, JP Morgan Chase, Barclays, and other financial institutions.

“We are extremely pleased to complete this acquisition. Sipher is known for their data communications expertise in general as well as designing and building customized communication solutions using message oriented middleware (MOM). Acquiring the Xport enterprise level MOM server empowers MODCOMP to deliver large volumes of business critical data while maintaining the rigorous performance and reliability criteria the financial services market demands,” said Brian Miller, General Manager, MODCOMP, UK.

According to Rob Crigler, vice president of sales and marketing, MODCOMP, “This acquisition could not be more timely. Expanding our core competencies into the IBM's Message Queue™ space greatly complements MODCOMP's expertise in enterprise application integration (EAI) and our expertise in developing business-to-business solutions (B2B) using J2EE middleware from BEA Inc.”

Existing Sipher customers will benefit from MODCOMP’s larger international presence and considerable resources and experience in eBusiness, EAI, and middleware solutions. MODCOMP will benefit by being able to offer new and existing clients enterprise level, highly scalable MOM solutions.

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., 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 www.modcomp.com.

About CSP Inc.
Based in Billerica, Mass., CSP Inc. (CSPI) and its subsidiaries develop and market software for eCommerce solutions and image processing, network management and storage system integration services and high performance computer systems. For more information about CSP Inc., call (800) 325-3110 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 and its subsidiaries' 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 dated November 27, 2001, with the Securities and Exchange Commission.

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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